Year End Tax Letter

For Tax Year 2019

preparing for the upcoming tax season

Another tax season is upon us!

 

We enjoyed working with you to complete your 2018 taxes and look forward to seeing you again soon. Next year, we will continue to provide quality tax preparation for the 26th year in a row. We are proud of our system designed to minimize our clients’ tax liability as much as legally possible! Our costs continue to be 40% below the region’s average, making us extremely cost-effective. We continue to strive for excellent service at substantially lower rates compared to other tax firms in the area.

 

Last year, many felt impacted by the Tax Cuts and Jobs Act of 2017 (TCJA) that was implemented into law for 2018 taxes. While there was no significant new legislation in 2019 affecting individual taxes, situations do change from year to year, thus requiring a fresh look at how to approach tax preparation. Due to tax changes realized in 2018, many of our clients were surprised how little their refund was this last year and many clients owed for the first time. As always, we advise setting up appointments as early as possible to avoid any last-minute surprises.

 

Just as a re-cap, here were some of the changes implemented in 2018:

  • Near-doubling of the standard deductions
  • $10,000 cap on the state and local income and property tax deduction
  • Suspension of personal exemptions
  • Suspension of miscellaneous itemized deductions
  • Lowered individual income tax rates and brackets

 

Is there still a penalty for not having healthcare in 2019?

 

No! Beginning in 2019, the ACA no longer imposes a penalty for individuals who do not have health insurance. However, if you purchased insurance through the marketplace, we still must receive copies of any 1095-A, -B, or -C that you receive so we can account for credits. Above All Accounting, Inc. cannot report the credits correctly without these forms and failure to produce those forms may result in additional accounting fees and IRS penalties.

 

Why am I being asked for my Driver’s License?

 

Along with sweeping changes in tax law is the increased risk of tax-identity theft. Although our firm has never had an issue, we take security very seriously, and tax identity theft is a growing problem. In prior years, Oregon and other states requested taxpayers to voluntarily provide driver’s license information on state returns. Although this was optional, we noticed clients who declined were substantially more likely to have their refunds delayed, their return processing put on hold, or receive a request for Additional Withholding Verification from the state. If you decline to provide a copy of an ID for the preparation of your 2019 taxes, the state may significantly delay the processing of your tax return and you may be billed for additional accounting fees that incurred to process the return.

 

Furthermore, the IRS has also implemented regulations affecting all professional tax practitioners. Above All Accounting, Inc. not only follows all regulations set forth by the IRS, but has additional electronic security measures in place to protect from breaches and protect your sensitive personal information.

 

How will my refund change?

 

As stated earlier, many clients saw their refunds decrease in 2018 compared to other years. However, this doesn’t necessarily mean you’re paying more taxes. If you failed to take advantage of any tax planning at the end of 2019, we advise you to book an appointment early. For some clients, there still might be some options available until April 15th, 2020 to reduce tax liability.

 

How can I give you my documents?

 

If you are unable to provide the documents to our office or via postal service, we provide a secure, online web portal for document transfer. Company policy prohibits the transfer of confidential documents using email or Dropbox. Our staff are unable to email documents that contain your Social Security Number, bank account, personal address, or any other confidential information. We strongly encourage you to utilize our free, secure web portal. If you do not already have an account, we can set one up for you at any time.

 

How much will this all cost?

 

The cost of the preparation of your return depends greatly on the complexity of the return. Please call us for an estimate if your tax situation has changed greatly from the prior year. Starting January 1st, 2019 we will increase our prices by 4%. This adjustment is simply to reflect the rising costs of doing business and it means that we can continue to maintain the superior standard of our services for the coming year.

 

We want to help you avoid paying additional accounting fees or penalties to the IRS or Oregon. Here are some tips to minimize your tax preparation cost:

 

Schedule and Attend Your Tax Preparation Appointment

Tax preparers’ schedules fill up quickly! Please call as soon as possible to reserve your tax appointment. While we do our best to accommodate all clients, appointments will not be scheduled after April 1st, 2020. There is a fee of $30 for appointments that are rescheduled or cancelled within 24 hours. Should an appointment run beyond the first sixty (60) minutes, the tax preparer’s hourly rate will apply for the remainder of the appointment. This additional time will be added to your final tax preparation invoice.

 

Come To Your Meeting Prepared

Enclosed you will find your tax organizer to assist you in gathering information required for the preparation of your taxes. Please complete the organizer, gather all relevant documents, and prepare in advance a list of any questions you may have. As part of the organizer, you can request a document listing all previous forms and Schedules that applied to you the previous tax year. This has greatly helped many clients prepare for their meeting with their tax preparer. Unfortunately, due to the high volume of tax returns prepared between February and April, we cannot guarantee your tax return will be prepared and filed on time if you fail to provide your complete documentation by the required date listed below:

 

 

Track Deadlines and File an Extension If Necessary –

 

*S-Corp and Partnership Deadline: March 15, 2020

If your documents are not submitted for tax preparation by February 28, 2020, an extension* can be filed for your Federal and State returns. Your file will be moved to April 22, 2020.

*Corporate and Trust Deadline: April 15, 2020

If your documents are not submitted for tax preparation by March 31, 2020, an extension* can be filed for your Federal and State returns. Your file will be moved to May 1, 2020.

*Individual Deadline: April 15, 2020

If your documents are not submitted for tax preparation by March 31, 2020, an extension* can be filed for your Federal and State returns. Your file will be moved to May 1, 2020.

*Non-Profit Deadline: May 15, 2020

If your documents are not submitted for tax preparation by April 30, 2020, an extension* can be filed for your Federal and State returns. Your file will be moved to June 1, 2020

 

*Extension fees apply. Contact our office to file your extension and make payment.

 

Pay On Time or at Time of Extension

Too many taxpayers pay unnecessary interest and penalties to the IRS due to late payments.  If you typically owe taxes at the time of filing and you need to file an extension, request voucher(s) so you can make an estimated payment(s). The extension only gives you an additional six months to file, not additional time to pay. The estimated payment(s) is based off of your previous tax year income.  In addition to tax preparation, we provide the following services throughout the year to give our clients a comprehensive approach to their individual needs:

 

  • Bookkeeping and accounting services
  • QuickBooks training
  • Payroll service
  • Notary service
  • Tax Resolution: Our firm has a 99% success rate for settling tax debt and negotiating Offers in Compromise and abatements. We also prepare delinquent return filings to reduce substitute returns prepared by tax authorities.

 

We look forward to assisting you in 2020. Have a great year!