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Ah yes, it's Tax Time in Tinseltown... so be sure to read Pam's newsletter below!

January 27, 2021

Dear Client,

First, we are all well and hope you are too.  What a year it has been!  Our last face-to-face interviews were last March.  You probably won’t be surprised to learn we won’t be having in person meetings this year, either.

We are making appointments, but they are really just a target time.  Your return will be done that date around that time.  We will call you with questions.  We still do regular mail-ins too.  You send your documents, and we prepare them in the order that they came in.  No appointment necessary.  We need them by March 15th, BUT - keep in mind that the closer it is to March 15th, the less likely we are to finish your return by the deadline - if we need to take an extension on it and it looks like you'll owe, we'll let you know. Remember - your mail-in goes in the queue once everything we need to complete your return has been received - so be sure to only send your information at one time, and in one PDF document (no folders or zip files, please).

I don’t anticipate this being a very fun tax season with everybody working less and getting all that unemployment, most times with nothing withheld. If you had a PPP loan however, not only are the proceeds not taxable, but you can still deduct all your expenses.  Congress overrode the IRS on that one. IRS was very firm that if it wasn’t income, what it was spent on (payroll and rent) should not be deductible.  Congress ruled otherwise.  That’s nice – helps the taxpayer.  I keep hoping they will decide to make at least the extra $600 on the unemployment nontaxable, but it doesn’t look like that will happen. CA now requires health insurance to avoid penalty.

So how do you get the documents to us?  Most of you sent your material in ahead of time last year, this year everybody will. There are several ways to accomplish this.

  1. You can make copies of everything and mail them to us. We are not able to return originals.
  2. You can fax everything to us.
  3. OR BEST METHOD: You can scan and send everything to your portal.
    Please don’t send us a picture you took. Jpegs are not stable for reproduction. They need to be PDFs.  Also don’t send one PDF at a time.  Just one with everything is great. There are more details on how to do this in the worksheet and separately on the website.
    When you use this method, you retain your originals and what you send becomes a permanent part of your records.  If you need help, call the office. We’re happy to help you.
  4. You can email things, but it’s not as secure. If you do email, password protect it.

If you get 1099s, have income without taxes withheld, or have a business and live within the city of LA you need a business tax license.  Information on this is on the website.

There’s another round of PPP and Disaster Loans.  You should check to see if you qualify.

Ah yes, death and taxes.  Sometimes you might wonder what’s the difference. Come on, you know Congress doesn’t meet every year to make death worse.

Use the worksheets!

Happy Calculating,

Pam

 

Remember, there're only two things certain in life - death & taxes. We can help you with one of 'em.