2021 Tax Year Client letter

Dear Clients,

Happy New Year! We hope this finds you all healthy, safe, and ready for 2022!

While 2020 and 2021 were years of the totally unexpected, we are hoping for a “back to somewhat” normal filing season in 2022! Plan on the regular APRIL 15th filing date!!!

We will continue to work hard to make sure our office is following the current Covid related guidelines to provide a safe and healthy environment for our employees and our clients. We are encouraging the use of safe technology to upload your tax documents using VERIFYLE. Most clients have found this easy to use for uploading documents and signing the returns. Due to the high demand for electronic copies of the returns throughout the year, we will be providing you with Electronic copies of the returns unless you specifically request hard copies. When sending us hard copies of your documents, we encourage you to use Fed Ex. Fed Ex seems to be more dependable than the postal service these days! Feel free to drop off your documents any time during our regular office hours. Cathy will be available for update appointments if you feel like you need that. If you chose to drop off or send in your documents via email, mail or Fed Ex, Cathy will contact you by phone to answer any questions you might have or to request any missing document information. Again, as always, we are happy to reschedule if you are not feeling well or have been exposed to anyone who has tested positive. Even if you have a slight cold, please do not visit us until you are healthy.

For some of you 2021 was another year of continuing to work from home, collecting unemployment, refinancing home loans, PPP loans and new for 2021, receiving the Advanced Child Tax Credit. We will need your EDD 1099, it should be arriving by January 31st. IRS will be sending a notice to the parents that received the Advanced Child Tax Credit, in some cased both parents will be receiving letters. It is extremely important that you include these letters with the rest of your tax documentation. We will be unable to prepare your return without them. In January, you should also receive verification of the amount of the 3rd Stimulus payment that you received, this information will be needed to complete your return. CA is still assessing a penalty for not having health insurance, please make sure to include that information. If you or anyone in your household is on Covered CA for health insurance, you will be receiving two forms, 1095-A and Form 3895, both forms are required to complete the returns.

Form 1099-NEC is required to be filed by January 31, 2022. If your business paid anyone for services during the year, you may be required to send them a 1099. This is also for services that may have been performed on your rentals. We are happy to assist you with this filing requirement, just give us a call.

Remember that calendar year Partnerships and S-Corporation returns are due March 15th. Please provide your year-end information by February 25th. If you need to request an extension, please let us know and we will be happy to take care of that.

While we make every effort to complete returns by the due date, information that is received after March 25th for the April 15th filing date, may require an extension. Again, please contact us and we will be happy to file the extension for you. Extensions are a request for an extension of time to file not to PAY, interest and penalties will begin to accrue until the return is filed. To stop potential penalties and interest, please make every effort to get your information to us as soon as possible prior to the extension due date. All extended business returns must be completed and filed by September 1st; we will need your information not later than August 1st. For your personal returns, we need your information prior to September 10th.

The 2021 Personal Tax Organizer will be available after January 3rd. We are happy to email, mail or print your organizer for office pick-up. Contact us at 530-885-1426, or email cactax@yahoo.com to request yours. While not required, they can be helpful in gathering information and remembering any changes that might have taken place during the year.

Both IRS and FTB continue to fight against fraudulent returns. We will need a copy of your current Drivers License or State ID to verify and update your information. FTB uses this information to verify that it is really you filing the returns. If you have been assigned a PIN number by IRS, remember that you will receive a new number for the 2021 filing year. We will need that notice in order to complete your return. Remember that the IRS and the FTB do not call you about your returns. Please hang up and do not engage in conversation with these SCAM calls. Never give out any of your personal information or allow them access to your computer!

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. Feel free to give us a call with questions or to schedule an appointment. Remember, you will not need an appointment to drop off your information.


Cathy, Doni, Jammie and Karen

Compliance with the Gramm-Leach Bliley act of 1999
It is the policy of CAC Professional Services, Inc. to manage 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 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 safequards that comply with federal regulations to guard your nonpublic personal information.