The 2020 tax filing year has finally come to close. We would like to send a huge THANK YOU to all of our clients, new and old. It is because of your support that the filing year was such a success, despite the many challenges we have all faced in the wake of the pandemic. Again, thank you!!! As we wrap up the 2021 calendar year, you may be asking "so, what are you up to"? Here are some key updates and VERY IMPORTANT reminders.
REMINDERS:
Federal 4th quarter estimated income tax payments are due January 18, 2022
The due date for State estimated income tax payments vary by State, as some payments are due December 31st and others the same date as Federal). Please review your estimated tax vouchers provided or contact us to determine the correct date for your resident state.
Be on the lookout for our annual busy season message at the top of the new year. That message will include key filing due dates and cutoff dates as to when documentation should be provided in order to guarantee meeting the various statutory filing deadlines. Returns are processed in the order received and volume is high, so we encourage you upload your documentation as soon as it is received in order to get in queue.
We have begun updating the website with resources for your use. We have provided links to some of the more commonly requested or used resources, but we also included some hot topics for. Be sure to check them out.
As you are aware, there has been, and will continue to be, many changes to the tax law as a result of the pandemic and administration changes. Therefore, we are in the midst of training overload. This will allow our firm time to decipher all changes and provide guidance and major updates to our clients.
In preparation for the 2021 tax filing season, we will be making updates to each clients' portal. Currently, we will be focusing on 2019 and 2020. If you are in need of specific information outside of these years, please submit a request to admin@shcpasolutions.com and we will upload what we have to the portal.
Client meetings and consultations are underway. If you have last minute tax questions or concerns, feel free to reach out via email or give us a call. You can also schedule a virtual teleconference via the Calendly link at the bottom of this email.
We encourage you to contact us today to establish a game plan for your accounting and tax needs. We are here to help and looking forward to working with you this year.
Thank you for being a valued client of Hawkins CPA Solutions!!
Legislation Tracker
President Biden's Build Back Better Bill is still being finalized and is anticipated to pass the Senate before Christmas. However, the current version includes several provisions that will impact taxes. Here are some key provisions to keep your eye on.
Adding a 3-5% surtax on very high-income taxpayers beginning 2022
Extend the American Rescue Plan Act (ARPA) Child Tax Credit (CTC) expansion through 2022, and make the entire CTC fully refundable on a permanent basis Extend the ARPA’s temporary expansion of the Earned Income Tax Credit (EITC) eligibility, phase-in rates, and amount through 2022
Beginning with 2021, the limit for the state and local tax deduction will increase substantially from $10,000 to $80,000 through 2030
Impose a 15 percent minimum tax on corporate book income for corporations with profits over $1 billion, effective for tax years beginning after December 31, 2022
IRS Processing Delays Continue
As of November 19, 2021, the IRS had 6.5 million unprocessed individual returns, which includes tax year 2020 returns with errors and returns requiring special handling such as those that require correction to the Recovery Rebate Credit amount or validation of 2019 income used to figure the Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC). The IRS is having to correct significantly more errors on tax returns than in previous years. In most cases, returns with errors are corrected by the IRS. However, if they need more information or need you to verify that it was you who sent the tax return, you will receive a letter from the IRS. The resolution of these issues could take 90 to 120 days depending on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return. As a means of speeding up this process, the IRS has been rerouting tax returns and taxpayer correspondence from locations that are behind to locations where more staff is available.
You are encouraged to continue to check Where’s My Refund? To check the status of your refund. You can also review your personal tax account for more personalized details. Keep these items in mind:
Once your electronically filed return(s) have been accepted by the taxing jurisdiction, we, the preparers, do not receive any additional information for the electronic filing system. We would receive communication from the IRS or State for your tax account only if a proper power of attorney is on file and have elected to receive copies of all communications sent.
"Accepted" does not mean "processed." Accepted means that the IRS or State has received your return and it has passed the test to be processed in their system. Processed means that the return has been pushed fully through their electronic system and is ready for billing, refund issuance, or further review, if flagged.
Client Portal
We request that ALL documents be uploaded to your client portal. As you can imagine, our inbox is overwhelmed during busy season. The portal is a secure system to ensure that documents are not lost. All clients have access to the portal is open year round. However, you are having trouble logging or need access, please follow these steps:
Reset your password by clicking on "Forgot Password." Your username is your email address.
Joint Filers - The portal is under the primary listed on the joint return. To gain access, the primary will need to add you as an admin user, which will generate separate login details for you.
New clients - Access should have been granted as you were secured as a client.
Check your inbox and spam for the invite from Client Axcess and follow the instructions included in that email.
If you confirmed that you did not receive the invite, please log in via our website by clicking on "Portal Login" at the top then "Forgot Password."
If you are still having trouble logging in, please send an email to admin@shcpasolutions.com to request access or assistance.
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