Happy Holidays! We hope that this finds you all healthy, safe and ready for a new year!
2020 turned into the year of the unexpected and it looks like 2021 will continue to be more of the same. With this being the case, our office is working hard to be here for you and to provide you with the comfort that your taxes are in safe healthy hands! Due to the ongoing pandemic, we will continue to wear face coverings, wash our hands and maintain a 6-foot distance this filing season. While we welcome appointments, we will limit our face to face time. Any additional conversation can be done over the phone. We are strongly encouraging the use of safe technology to upload your tax documents using VERIFYLE. Most clients found this easy to use this past year. We can email copies of tax returns and your organizer from our tax program securely. We are also able to count on FED EX to safely receive your documents and return the prepared returns if you are not comfortable with the digital world. SHORT in person appointments will allow for a quick overview of major changes in 2020. If you do not need to sit down with Cathy, she will be happy to catch up and go over your taxes via phone after she has received and reviewed your documents and to answer any questions you may have. For those of you that need to come into the office to sign, we will be booking signing appointments for in office pick up. Again, as always, we ask you to reschedule if you are not feeling well or have been exposed to anyone who has tested positive within the past 10 days. Even if you have a slight cough or cold, please do not visit us until you are healthy.
For some of you 2020 was the year of collecting unemployment, working from home, refinancing your home loans, PPP loans and not receiving your RMD from your retirement accounts. EDD will be sending you your 1099 by Jan 31st. This will include the amount your received and any federal tax withholding. Make sure to include this with your documents. If you worked from home as an employee, you may be able to take a home office deduction for California. Please contact Cathy to see what information she may need. If you did a refi of your home loan, we would need the final closing statement from the escrow company. For a PPP loan, we will need the details, while it is not taxable income, it will reduce your deductible business expenses. If you did not take your RMD or if you returned it, please let us know. You will not receive a 1099 if you did not take it for 2020.
Please include the letter that you received from “The White House” (Notice #1444) which includes details of the Economic Impact Payment (Stimulus) you received. While not taxable income, it is reportable to insure you received all you were entitled to.
While there is no longer a Federal penalty for not having healthcare, there is one for CA as of Jan. 1, 2020. We will need your insurance information. If you received your insurance through Covered CA you will receive a Form 1095-A. This information MUST be included on your return or IRS will not be able to process your return and it will delay your refunds.
NEW FOR 2020! For federal purposes, you can deduct up to $300 in CASH contributions even if you take the standard deduction. Make sure that you include this information.
Remember if you paid someone $600 or more for services for your business or rental, you need to provide them with a 1099-NEC form by January 31st. We can help you with this if you provide us the information. If you paid office or station rent, you need to be filing a 1099 for the rent you paid. These forms are due February 28th.
Partnerships and S-corporation returns are due March 15th. We will need your information by February 26th to complete and file the return on time. We can always file an extension, if needed, please let us know. The extension is valid until September 15th. Annual payments to FTB are due April 15th. If you started a new business in 2020, we will need copies of the business formation documents for both CA and IRS in order to prepare the return and/or file the extension.
Extensions for ALL filers are an extension of time to FILE, NOT an extension of time to PAY. While we make every effort to complete your returns by the due date, information received after March 27th, may require an extension.
Both IRS and FTB continue the fight against fraudulent returns. Please provide us with a copy of your current Driver’s License or State ID. This information will minimize possible delays in the processing of your returns and refunds. If IRS has provided you with a PIN number, please include this also, as we will be unable to E-File your return without it. Remember IRS and FTB do not call you about your tax return or any balances due, these are SCAM calls. Please hang up and do not engage in conversation with the caller. Social Security does not call unless you have an appointment with them. Please do not give out any personal information or confirm any information they may have. HANG UP!!!
The 2020 Personal Tax Organizer will be available after January 4th. We can e-mail, mail or print your organizer for pick-up. Contact us at 530-885-1426 or email email@example.com to request yours. While not required, they can be helpful in gathering your information and remembering any changes that might have taken place during the year.
We will have extended hours during tax season which include Saturdays for appointments and return pick-up. As in the past you may email, fax, mail, Fed-Ex, office drop-off or book an office appointment to deliver your tax reporting documents and information needed to prepare your return. We will contact you if we believe there is missing information. Once your return is completed and ready for signature, we will contact you. If you prefer an Electronic copy of the return instead of paper, please let us know and we can accommodate you. The last day appointments will be available will be April 3rd, feel free to call and book your appointment early. If 2021 is anything like 2020, we may need to adjust to adhere to Placer County and the ongoing pandemic. Please plan ahead and get your documents to us early so we have enough time to return them to you.
Thank you, once again, for your business and your trust in us. We are looking forward to hearing from everyone in the new year! Please stay safe and healthy.
With warm regards,
Cathy, Doni, Jammie and Karen
Compliance with the Gramm-Leach Bliley Act of 1999
It is the policy of CAC Professional Services, Inc. to handle the information you provide to us with the utmost confidentiality and care. We restrict access to nonpublic personal information to members of our firm who need to know this information in order to complete the work that you have hired our firm to do. We will not disclose your personal and confidential information to anyone outside our firm without your express written permission to do so. We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.