Year End Letter-Linda Rozet CPA

Office of....


7575 W. Peoria Ave Ste A-101

Peoria, AZ 85345


Phone 623-815-4749

Fax 623-486-0314





December  10, 2018


Dear valued client:




I hope you have had a wonderful and blessed year!





Here we go……………It’s time for major tax changes!


If you are not already aware, this year brings very large tax reform. In fact, the largest that I have ever experienced in my career. There will be several changes taken place!


Trump’s Tax Reform Act

This year, I have chosen to attach a summary of the most recent changes to take effect first, as there are too many important changes to list in bullet format.  I’ve also attached an update that AZ has provided with the limits for the AZ tax credits. With the personal uncertainty that comes with change, you may find you have more tax compliance or tax planning questions this year than typical. Feel free to contact us with any questions and we will do our best to get back to you in a timely fashion.  Also attached is a link directly to IRS to read further into any of the new federal changes.




I’d also like to encourage you to explore the various resources that are available on our office website.


Pages will continue to be updated as the tax season approaches.


One tab……..”FINANCIAL CALCULATORS” (offers tools for savings calculations, retirement contributions, payroll deductions, budgeting tools, credit score analysis and Earned Income Credit calculations).


Credit/Debit card payments are continued to be accepted through a payment option on the Home Page, in addition to, of course, in-office and phone payments.


You may find some very useful information on the FAQ page and you may enjoy reading client comments on the TESTIMONIAL page.


I would love to receive some additional current client TESTIMONIALS so feel free to email in any comments that you would like to share with others as a part of that website page! That would be very much appreciated, valued and enjoyed!


Another feature offered on the website is a file sharing program called “MY FIRM FILES”. This is available for anyone needing to submit sensitive data that is too large for regular email or for anyone that prefers the extra security of the encryption process. Please contact me for instructions.




Honestly, this year has been a very challenging year . I did have major surgery this year in the summer, our team had IT issues early last tax season, we had an adjustment period settling into the new office and I also just recently lost my mother. I was also unexpectedly understaffed this year for a longer period of time then was foreseen. Therefore, with these things being said, I very much appreciate those who have remained patient and understanding as I experienced a year of many personal and professional challenges.


I believe we are on an upswing now and am very excited about this upcoming tax season! My quest is to become fully staffed with smiling faces and positive energy to accommodate requests more timely going forward.


One big change is we have successfully been working an evening shift for about six months now. We are officially open Monday/Wednesday evenings until 9pm for client appointments. We have also had Saturday office hours all year round. A lot of clients have been very receptive to this extra availability.


I’m very happy to announce that a couple new faces have joined my office. Thomas Shewman was hired in June. Tom brings a lot of positive, younger energy to the workplace and he specializes in Quickbooks bookkeeping, as well as beginning tax preparation tasks. Tom works evening and Saturday hours.


I’m also very happy to announce that I have also just hired a new receptionist to join our team and will be introducing her as she gets more trained and settled into her routine..




I do need to reemphasis the following as this still has not been fully previously understood by all …….


The tax season is a very demanding time and there is increasing new regulation  that entails a tremendous amount of important work to be handled within a very short time. Therefore, if you can keep this in mind and please be patient in waiting for responses it would be of utmost appreciation. We understand the tendency is to be anxious while waiting upon tax results. We simply just ask for you to please be patient as we do the best professional job we can. Keep in mind, sometimes this can entail additional time and judgment.


It is our professional policy to generally not prepare tax returns while clients wait and not to release tax results until your pickup appointment or until your package arrives in the mail. I realize there will be some limited circumstances when this information is needed in advance, such as the decision to apply refunds to the following tax year.  That can be considered an exception to the policy. 


Also keep in mind that the time we estimate to complete tax returns during the peak season is simply AN ESTIMATE. It is very difficult to commit to an exact completion date as I have been a CPA for many years and do have impromptu issues I need to attend to daily that were not originally anticipated. Therefore, those of you that have been working with me for years will probably realize that it will usually take me a bit longer than anticipated to finish a tax due to the above explanation.


Please respect our professional decision on these policies as they are established for reasons.  We really appreciate it!


If we can all work together on these requests and policies, it will make for a much smoother tax season. Many thanks on this in advance!





Please utilize the very secure drop box that exists on the west side of our office building. This is a great feature to enable paperwork to be dropped off 24/7 and especially for routine paperwork or signature forms to be deposited if there isn’t a need to ask a question of the receptionist. Of course, feel free to confirm receipt when desired.


The IRS continues to utilize what is called MODERN E-FILE. This program allows us, in many cases, to know almost instantly if a tax return is accepted. E-filing is typically available for the most three recent taxyears.


I am continuing to offer tax appointments through “video conferencing” using SKYPE for anyone who is interested. This may be a great option for those of you who have relocated.



The IRS is continuing to concentrate their efforts in community outreach in the areas of rental property owners and small business clients. If this applies to you, please remember to keep good records of all income and business expenses as this paperwork is required to support any potential deductions claimed on your return.


It is very important to keep an accurate mileage log to support your business use of a vehicle. Just as important is proper documentation of any business meals/entertainment and per diem or travel allowances. Please be prepared to submit this documentation during tax preparation. I am always available to offer advice in any of these technical areas.



With all of the tax reform taking place, IRS has yet to announce the opening of the e-filing tax season. It will most likely be LATE January. Stay tuned for further information.


We hope to be hearing from you soon in regards to the preparation of your tax returns.  As always, your continued business is greatly appreciated!  We have opened up the calendar for tax appointments at this point so you can schedule whenever you are ready.  Feel free to email or call with a request for a specific day and/or time for your appointment and we will try our best to accommodate that.   As a reminder, evening and weekend appointments are offered. Once again this year we will be using income tax organizers and would appreciate them being filled out as best as you can to help recap the accuracy of your return details, (especially anyone with a small business.) Even though it may not seem needed from your perspective, they are a very helpful tool as I may only talk to many of you once a year.


As another reminder, once again this year,  I am requesting that we place any large special projects and prior year tax returns on hold  during the Jan-April time frame unless it is extremely urgent.  If you are behind in your bookkeeping or income tax filings, please contact me and make special arrangements to handle your needs. Due to the demands of the tax season, I regret that as a general rule, we do not have the resources to work on special projects or prior year tax returns during this time frame.  I feel this is only fair as a courtesy to all clients trying to meet the regular income tax filing deadlines.


If you are receiving this newsletter by mail, we do not have an updated email address for you on file.  There is an area on my website where you can update me on this information so that you don’t miss out on any updates that may be distributed by email throughout the year. (“SEND US YOUR INFO” PAGE)


The options for tax preparation again this year are your own personal choice. While some feel that certain tax issues are best handled and discussed in person, others prefer submitting data electronically if your tax situation is similar to last year and  if there isn’t much that warrants a new discussion.


Income tax paperwork can always be mailed, emailed, faxed or delivered to me by a courier service.




The following list is a summary of what I feel are important tasks to review before year end.  A lot of these I feel are worth repeating, as many of these are frequently overlooked by many businesses and individuals each year.



·         Mail your January mortgage payment early enough to be posted this year if you are needing deductions or HOLD your January mortgage payment to defer deductions if your itemized deductions are LIMITED this year

·         Make donations this year of any unused household items

·         Take advantage of the AZ School Tax Credits

·         Take advantage of the AZ Charities that provide assistance for the Working Poor Tax Credit

·         Request a  personal tax projection from me if you have had an issue with under-withheld taxes in the past. (The tax planning charge would be quite justified if it  helps you in managing your financial affairs and eliminates year end surprises)

·         Make Educational and Individual IRA  contributions

·         Keep better track of charity, medical and business mileage for the self-employed

·         Sign up for employer flexible spending accounts  (Section 125 plans) and retirement benefits (dependent care, medical, 401K)

·         Make sure to use all of the funds left in your flexible spending accounts

·         Make 4th quarter estimated income tax payments (AZ deduction counts this year if mailed during December)

·         Consider selling losing securities to benefit from the allowable capital loss deduction and to net losses against gains in the same year

·         Install qualified energy efficient home improvements or solar equipment

·         Submit all medical expenses with your tax preparation as medical is 100% deductible for ARIZONA even though there is a FEDERAL 7.5% of AGI limitation

·         Consider requesting employer reimbursement now for employee expenses as they are no longer deductible on your personal income taxes

·         Remember that travel expenses are now deductible as eligible gambling losses

·         Consider shifting income to others that may be in a lower tax bracket

·         Consider a ROTH conversion to utilize the wider new income tax brackets



Ÿ  Upgrade your QuickBooks if you are a 2016 user.  File your corporate and partnership income taxes on time! There are now steep penalties assessed for non-filing of your income taxes.

·         Corporations:  Generate your annual meeting minutes and any bylaw changes.  IMPORTANT:  All Corporations are required to have stock registers/certificates, minutes and bylaws!  If you do not have these on file, contact me for a referral source.

·         Corporations:  File your Arizona Corporation Commission reports on a timely basis. You can sign up for e-mail reminders through their website. 

·         Accelerate any foreseen equipment, auto and supply purchases into this year

·         Consider taking advantage of the Section 179 deduction for vehicle purchases

·         Make SEP contributions

·         Log  in cash expenses for the year

·         Document business miles traveled on your mileage logs (see me for a sample)

·         Keep better track of expenses for  home utilities for businesses operating from home

·         Claim up to a maximum of $25 for any valid business gifts given to individuals or businesses

·         Delay billing customers in  December to defer revenue into January,  if possible

·         For cash basis businesses, pay all outstanding bills if cash flow allows

·         Remember that credit card purchases are deductible in the year the items are purchased

·         Make sure you are in compliance with the State Fund mandatory coverage requirements for contractors that do work for you.

·         REMINDER: Workers Compensation Insurance is mandatory for all employees with owner/officers being the exception to the rule.

·         File payroll and sales tax reports timely and become knowledgeable as to your filing deadlines

·         Turn otherwise hobby expenses into legitimate business deductions by converting into and setting up a sole-proprietorship 

·         Review the possibility of claiming a home office deduction under the fairly new SIMPLIFIED METHOD



·         NEW REMINDER: Arizona now requires all businesses to provide paid sick time for all employees.  The minimum is 1 hour of sick time per 30 hours worked.

·          Calculate any payroll bonuses or shareholder loan payments

·         Sole proprietors-pay children for services rendered to shift income to a lower tax bracket

·         Order a current tax table if you are a QuickBooks payroll user (not required if I enter your payroll for you)

·         Report new employees to the New Hire Reporting Division (mandatory through the year) THIS HAS BEEN OVERLOOKED BY MANY BUSINESSES. 

·         Obtain current addresses and taxpayer identification numbers for any 1099 subcontractors, employees and previous employees (for 2018) and enter these into QuickBooks

·         Reimburse employee business mileage at .545/mile

·         Check your files to make sure that valid I-9, W4 and A4 forms exist for every employee

·         Make sure you are aware of your required tax deposit and quarterly report deadlines.  I have seen excessive penalties again this year relating to late reports that could have been easily avoided.  Contact me for a payroll chart if it would be helpful. It definitely helps to make sure you understand the specific payroll filing requirements for your business. I’d love to see these reduced or completely eliminated for next year.

·         Consider setting up a small business profit/sharing or retirement plan.

·         Consider setting up an HSA (Health Savings Account) for employees.

·         Re-evaluate the best business structure for your company under the new Tax Reform Act

·         Remember that there is a new 20% QBI deduction for small businesses


Hopefully, I have suggested some items that can be of assistance to you or your business and can possibly help save some money.  If you have any questions or comments, don’t hesitate to call .


Lastly, you will periodically be hearing from me throughout tax season as I receive any important tax updates!


Thank you all for your continued support and ongoing trust and business!


Hope to see or hear from you soon ………..


Warmest Regards and Happy Holidays, J


Linda & Team






(Planet Fitness Shopping Plaza --Corner Suite on West End of Building) 



Linda Rozet, CPA
7575 W Peoria Ave Ste A-101
Peoria, AZ 85345
Ph 623-815-4749
Fax 623-486-0314