First some important reminders, then I have a bunch of questions to which I’d like you to respond…
The October 15th tax return extension deadline (for families and individuals) just recently passed.
Therefore… a word on filing — even if you don’t/didn’t want to:
Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe — and the IRS will figure it for you if you don’t), and an additional 5% for every month you wait to file.
PLUS there is an additional .5% late PAYMENT penalty on whatever it is you owe (assuming you also didn’t make the payments). NOTE: this is ON TOP of late filing penalties.
Then (yikes), interest accrues on both the late tax filing penalties AND the late payment penalties.
That’s a lot of penalty. And at least the first one is completely avoidable.
If you can’t pay the tax due on October 15, still file… and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe. We’ve helped others with this and we can certainly help you with it.
This might be especially painful for those who had a great 2019 (from an income standpoint) and didn’t pay their estimated taxes — and then have had a rough 2020.
If this is you, we really can help: 954-752-4013
Don’t avoid the problems. It’s much easier to face them head on when you have someone in your corner (ahem).
And, of course, if you already have our help, we’re on the case.
Now… let’s talk about THIS YEAR (2020).
Let’s talk about making sure that you are never surprised by your tax return again.
We want to help you make a plan for your 2020 taxes that will set you up for long term success. In fact, there may be a few moves we can make that can help your tax hit NOW before we’re forced into “reaction mode” — which is the only mode out of which after-the-fact tax work can be done.
So, if at all possible, ~Contact.FirstName~, I’d like to help get ahead of the game for you by having you contemplate a few short questions for me…
1) Have you had a significant change in your wage income this year?
2) Have you taken capital gains or losses this year? Are you planning to?
3) Did you start or sell a business this year?
4) Did you purchase real estate?
5) Did you make your full contributions to retirement accounts?
6) Have you considered a Roth IRA?
7) Did you withdraw from retirement accounts, and for what purpose?
8) Are there any other tax or financial (or other) issues you think we should know about?
The answers to these questions form the “tip of the iceberg” and allow us to better steer the metaphorical Tax Ship in the right direction. Feel free to reach out to us with answers to these questions as we work with you over the next two months to prepare for year-end. We’re moving into Tax Planning phase over here and with that will come appointments galore.
Have a lovely weekend!
Sheri L. Hoble