Happy New Year! Important Tax Information for 2020
January 15, 2020
My name is Jeremy Lederer, and I’d like to welcome you to work with my company this year. I'm writing to outline some important items related to the 2020 tax filing season, so things will go as smooth as possible.
Merger with Benson Accounting. We are very excited to have joined forces with Chad Benson, CPA and welcome him and his associates to the CPA Solutions team! The merger will allow us to provide Chad with more support and free him up to better provide high level client services, as well as, expand our bookkeeping and payroll department.
WealthAbility Network Affiliation. CPA Solutions, LLC is now a member of this exclusive group of about 30 CPA firms worldwide. Our focus is on creating permanent tax savings for business owners, real estate investors and entrepreneurs. Their guidance now allows us to provide you the highest possible value through utilization of the best planning and strategy related to tax reduction without compromising on legality, ethics or morals. Visit wealthability.com to lean more.
Financial Plan Oversight. Through partnership with Boyd Pederson, CPA and Transamerica Financial Advisors (TFA), we are now able to offer this as a service, on top of our core services of tax planning, preparation, bookkeeping, and payroll. Essentially, it is an analysis of your existing financial plan or the creation of one if you don’t have one. We will be sending out an optional survey to gauge your interest in this, during the tax preparation process. We are available to consult with you on all related matters.
Tax Preparation Process. We will begin working on your tax returns when you have taken all the following actions:
- Signed engagement letter
- Completed the tax organizer questionnaire (for individuals)
- Paid retainer of $500 for each individual and $900 for each business
- Confirmed that all your source documents have been provided
We'll contact you during the process if there are any questions or clarifications needed. When your tax returns have been completed, you will receive an email from us with instructions on how to complete the filing. We will follow up with a reminder if we do not hear from you within a week.
Cutoff Dates. Cutoff date for passthrough business returns (Form 1120S & 1065) is February 15th. This means that we cannot guarantee to complete your business returns by the first deadline of March 15th, unless all info for the business has been received by the February 15th cutoff date. Similarly, the cutoff date for individual, corporate and fiduciary returns (Form 1040, 1120 & 1041) is March 15th. This means that we cannot guarantee to complete those returns by the first deadline of April 15th, unless all info for the returns has been received by the March 15th cutoff date. We’ll file an extension of time to file, if we do not have all info by the cutoff dates to move deadlines to the fall. Note that extension is only for time to file, and taxes owed are still due by April 15.
Simplified Tax Organizers. We will email online access instructions to you by January 10th with link to sign our engagement letter. Let us know if you need assistance, or if you did not receive. Refer to the organizer for what you had last year. We encourage you to use it as a guide. You are not required to fill it out or use it, but it will help us prepare more accurate filings. We will ask you to complete the questionnaire portion of the organizer, before we begin tax prep. This year we switched to a new organizer format. This organizer serves as a simple checklist of what you provided last year. If you prefer the previous version of the organizer, please contact our office. Please note that printing and mailing of organizers will be subject to a $25 fee as electronic copies are provided via your client portal.
Paperless Office. We strive to keep your costs down and are sensitive to our natural resources. We are a paperless office, and our default delivery system is through the secure online portal. Paper copies are always available upon request, but this year forward we will be charging $50 to print and mail copies of your tax returns. We encourage you to request that all your source document originators deliver info to you electronically, so you can forward it to us efficiently.
Secure Online Portal. This is the safest way to transmit sensitive documents. You can upload large files and multiple documents simultaneously here. When we have an action item for you, this is where it will be saved. Remember that your username is your email address. The system automatically resets the passwords periodically for your protection, but the Forgot my Password link is easy to use. Please contact us if you need help getting started using the Portal.
Dropping Off Info. We have several locations for you to drop off info this year. Visit www.cpaso.com/contact for exact locations and directions. We encourage you to call in advance to schedule a time. If you need to explain any of your info, a member of the local office team will be available to accept delivery and take notes. We ask that you collect all your info before scheduling a drop off time.
Document Retention Policy. Any documents that you drop off or mail to our offices will be scanned and shredded. We will maintain digital copies of everything you provided, as well as, digital copies of your tax returns for as long as you’re an active client.
Virtual Meetings. This option will create more opportunity for us to connect with you. Regardless of the weather or different physical locations, we can facilitate a meeting where you can get face-to-face with your trusted advisor and look at the same document together. This is intended for review of your tax returns, after they have been completed. We'll be following up with additional info on this subject in the weeks ahead. Tax return review meetings (phone, video, or in person) are available upon request.
Signing E-file Forms. This year the IRS has authorized a fully electronic signature process. Instead of printing, inking your signature, scanning, attaching, and emailing, we are now able to use e-signature through Adobe EchoSign.
Payment Before Filing. The invoice will be prepared after your project is complete. Payment is due when we deliver drafts of your tax returns to you. We will not file your returns until payment has been made. This is the most logical and fair time to exchange value. Note that monthly business clients for whom we provide full-service accounting are not subject to this, when they’ve setup automatic monthly payments. Let us know if you’d like to discuss a monthly engagement for your business.
Thank you for considering us for your tax/accounting needs. We truly appreciate the opportunity to serve and look forward to helping you achieve your goals.
The CPA Solutions Team