Updated May 7th, 2021

We have been getting questions about delays in your receiving your refunds from IRS. We have come to understand that IRS has faced some technical and logistical challenges. Refunds are taking much longer than usual.  For more information, see the article in today’s Wall Street Journal entitled “Are you getting money back form IRS this year?  Be prepared to wait.”

 

Updated April 8th, 2021

We have encountered enough of our clients and prospect who have been surprised to learn that tax preparers and advisers have been facing challenges this tax seasons are are surprised that their tax returns have not been completed in the time expected. They have been surprised to learn that IRS extended the regular filing deadline until May 17th, 2021.

As a result, we wanted to share some of the challenges we have faced this year along with our fellow tax preparer colleagues. I found the an article you can access here from CNN Business that does a better job of providing an explanation that I can.

Since the deadline to make your estimated tax payments remains April 15th, 2021 we are hard at work getting this information to those we know need it, then we will focus on getting your tax return completed for you.

Thank you for your patience.

 

Updated Wednesday, March 17th, 2021

Today the Internal Revenue Service announced they have extending the 2020 tax filing deadline for individual taxpayers until May 17, 2021. See here for the full announcement from IRS.

Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.

This relief does not apply to estimated tax payments that are due on April 15, 2021. These payments are still due on April 15.

 

Updated Sunday, February 28th, 2021

We are offering to work with you this year in a variety of ways to try to accommodate our preferences including working completely remotely while offering limited duration meeting in our office. First, we want to thank all of those you listened to us and have started early working with us on their 2020 tax returns.

Please deliver substantially complete information to prepare your 2020 tax returns by March 15, 2021 otherwise we are likely to file an extension of time to file and work on completing your tax return this summer.  To better understand why, please read on.

Some notes about common issues we are facing.

  1. Stimulus Rebates: We need to know about both of the “Economic Impact Payments” (aka stimulus payments) you received, both the first one you may have received in the spring / summer of 2020 and the second one you may have received in January 2021. Both payments must be reported on your 2020 tax return. Check with IRS at https://www.irs.gov/coronavirus/get-my-payment about your payments.
  2. Unemployment Compensation: Did you receive any unemployment compensation in 2020? We are recommending delaying filing any tax returns with unemployment compensation. Unemployment compensation is taxable for federal tax purposes (not for California). Yes, EDD may have withheld taxes, but almost certainly not enough. The Congress has proposed legislation to treat up to $10,200 of unemployment compensation received in 2020 as not taxable. The legislation is proposed, but not enacted.
  3. Payroll Protection Loans: Many business owners received a PPP loan. If it has been forgiven or is likely to be forgiven, expenses used to qualify for forgiveness are currently taxable for California tax purposes, but not for federal tax purposes (seems like the same as saying the loan forgiveness is taxable, doesn’t it since it amounts to the same result). There is proposed legislation what would make up to $150,000 of such expenses deductible. Again, this is proposed legislation which has not been enacted, so we recommend anyone who took a PPP to wait to file until this legislation is either passed or not.

There are other issues, but we are sharing that the tax laws related to many 2020 tax returns is uncertain and likely to change which will mean expect to have an unusually challenging end to the tax season.

 

Updated Thursday, June 18th, 2020

We are happy to report that we will begin schedule short duration meetings again in our office starting on Tues., June 23rd.

Appointments will be limited to 15 minutes and only one family unit at a time with time in between appointments to provide for adequate social distancing in addition to taking other protective measures. This will not allow for the time for tax preparation while you wait, but it will allow for in-office visits to review your documents, review your tax return, sign papers and other activities of relatively short duration.

Please do not come to our office if you are sick or have symptoms associated with COVID-19.  Please pay close attention to the signs and instructions both in our building and in our office. You will be subject to a health check and we will require that you wear a face covering during your entire visit.

Give us a call and make an appointment. We will be happy to see you.

 

Updated Wednesday, April 15th, 2020

It is the normal tax day, but not this year.  All filings and payments are now due on July 15th, 2020.  There are a few state filing exceptions, but California conforms to the revised due date. It applies to filings and payments.  No penalties or interest will accrue due to filing or paying if by July 15th.  This does not forgive penalties or interest that would fave applied you had filed an paid by the regular due date such as failure to pay proper estimated tax.

 

Economic Impact Payments (aka Stimulus Payments)

The IRS had begun making these payments starting with those who used direct deposit of their refund from the last year filed (2018 or 2019). You can check the status of your “stimulus” payment and, if you did use direct deposit on your most recently filed tax return, provide IRS with your bank routing and account number to receive your payment be direct deposit at https://www.irs.gov/coronavirus/get-my-payment. You can find information about who qualifies for this payment and how much at Coronavirus Legislation Summary for Individual Taxpayers.

 

Updated Friday, April, 10th, 2020

Yesterday the IRS announced they expanded the deadline for additional returns, tax payments and other actions. As a result, the extensions generally now apply to all taxpayers that have a filing or payment deadline falling on or after April 1, 2020, and before July 15, 2020. Individuals, trusts, estates, corporations and other non-corporate tax filers qualify for the extra time. This means that anyone, including Americans who live and work abroad, can now wait until July 15 to file their 2019 federal income tax return and pay any tax due.

 

Extension of time to file beyond July 15:

Individual taxpayers who need additional time to file beyond the July 15 deadline can request an extension to Oct. 15, 2020, by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004. An extension to file is not an extension to pay any taxes owed. Taxpayers requesting additional time to file should estimate their tax liability and pay any taxes owed by the July 15, 2020, deadline to avoid additional interest and penalties.

 

Estimated Tax Payments

Besides the April 15 estimated tax payment previously extended, today’s notice also extends relief to estimated tax payments due June 15, 2020. This means that any individual or corporation that has a quarterly estimated tax payment due on or after April 1, 2020, and before July 15, 2020, can wait until July 15 to make that payment, without penalty.

 

2016 unclaimed refunds – deadline extended to July 15

For 2016 tax returns, the normal April 15 deadline to claim a refund has also been extended to July 15, 2020. The law provides a three-year window of opportunity to claim a refund.  If taxpayers do not file a return within three years, the money becomes property of the U.S. Treasury. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by the July 15, 2020, date

 

IRS live telephone Unavailable 

IRS live telephone assistance is currently unavailable due to COVID-19.

 

Updated Monday, April, 6th, 2020

The Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act affects most individuals and businesses. We have created a summary of the key provisions as they affect individuals and businesses.  Please review these two page summaries by downloading the document using the links below.

Coronavirus Legislation Summary for Individual Taxpayers

Coronavirus Legislation Summary for Business Taxpayers

 

Updated Monday, March, 23rd, 2020

We are prepared to maintain our services but acknowledge there will be temporary adjustments needed. We continue to work to balance serving you and taking care of ourselves. Effective immediately, we will not be able to have any office visits until further notice. We do not know how long this policy will remain in effect but are prepared to serve you remotely. We expect to have one person in our office to collect and process documents which come to our office physically or electronically, as well as to facilitate work between our staff and clients. You will be able to find updates regarding our status on our website at https://adaptax.com/coronavirus.

The IRS has extended both the time to pay and file until July 15, 2020. See their announcement here. The extension to pay includes any balance due on your tax return and the estimated tax payments normally due on 4/15. The change in filing and payment deadlines takes much of the immediate pressure off for now.

We are working to: complete your tax return or financial plan, represent you or manage your investments. With these measures in place, our work will take a bit longer to complete. I hope you understand.

If you have documents to deliver to us: (1) use our secure portal at https://adaptax.com/portal, (2) mail to 4725 1st St., Ste. 264, Pleasanton, CA 94566, (3) use our secure lock box located in the 2nd floor hallway in our office building between the First Street entrance and the elevator, or (4) FAX to 925-397-3061.

If you have an urgent need to get your tax return completed, please let us know. Otherwise, we work on projects in the order delivered to us. Under the current circumstances, we will try to prioritize tax returns with refunds.

Once we have our tax return completed, we will want to know if you wish to review your tax return with us via a meeting by phone or web conference. In the meantime, we will also want to know how to deliver your tax return. Our default choice will be to deliver documents via our secure portal.  We can also offer to mail them to you, and in some cases, use E-signatures using DocuSign or equivalent or wait for an in-office review.