Year End Letter-Linda Rozet CPA
LINDA ROZET, CPA, PC.
7575 W. Peoria Ave Ste A-101
Peoria, AZ 85345
YEAR END NEWSLETTER
December 9, 2017
Dear valued client:
I hope you have had a wonderful and blessed year!
BIG NEWS…………..WE HAVE RELOCATED WITHIN PEORIA
We are very excited to let all of you know we have moved our office to 7575 W Peoria Ave, Suite A-101! It is in the PLANET FITNESS retail plaza on the southwest corner of the 75th Ave/Peoria intersection. It is bigger, brighter, and brand new. We are sure you will love it as much as we do. We expect to be settled in by the end of December. Our suite is located on the far west corner of the plaza, (the endcap suite).
Please note there is currently major construction at that intersection so you may want to allow extra time.
WHAT’S NEW FOR THE 2017 FILING SEASON?
Due Date for Partnership and Multi Member LLC Tax Returns is March 15th! Due Date for C-Corporations is April 15th!
Trump’s Tax Reform Act
This is a general overview of the proposed key areas of change and we will be updating you as the Act progresses its way through Congress.
Some general PROPOSED areas of change are as follows:
Lowering personal income tax rates to 12%, 25% and 33%
Lower business taxes to 15%
Keep the same Capital Gains and Dividends rates
Repeal the Alternative Minimum Tax
Repeal the Net investment income Tax
Repeal Estate and Gift taxes
Repeal the Affordable Care Act
Increase the standard deduction to $15k for single filers and $30k for joint filers
Eliminate Head of Household Status
Implement deductions for childcare and eldercare
Changes to Dependent Care Savings Accounts in regards to limits and government match
Eliminate all itemized deductions besides mortgage interest and charity
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 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.
I’m very happy to announce that a new face has joined my office. Elaine Goodwin was hired in July. Elaine has many years of tax preparation experience and looks forward to meeting all of you. Elaine will specialize in tax preparation and customer service.
I’m also very happy to announce that Ellen Eklund has rejoined the team, full-time, as our Accounting/Office Manager. She will also be assisting in the preparation of tax returns and has many years of experience. Ellen will help provide added resources to our business clients, such as payroll, bookkeeping and sales tax reporting expertise.
SENSITIVE STAFF NEWS
The tax season is a very demanding time and there is increasing 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. Please respect our professional decision on these policies as they are established for reasons. We 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!
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.
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.
E-file will open this tax season on January 23rd…………..
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.
Once again this year I will be offering e-collect products. These products allow you to get your taxes prepared with ZERO out of pocket costs. One option enables you to have your income taxes prepared, refunds direct deposited to your bank account and the tax preparation fee deducted from your anticipated refund. The second option enables you to have your refund deposited on to a debit card (no bank account is needed) and your tax preparation fee can be deducted from your anticipated refund. I received great feedback from the clients who used these products last year. There are very nominal fees associated with these options.
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. Reminder that we will still have a 24-hour secure paperwork drop slot at the new office. It is located on the west side of the building.
YEAR END AND YEAR ROUND REMINDERS
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 http://www.azdor.gov/TaxCredits.aspx
- Take advantage of the AZ Charities that provide assistance for the Working Poor Tax Credit http://www.azdor.gov/TaxCredits/QualifyingCharitableOrganizations.aspx
- 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 moving, charity, medical and business mileage
- 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 (if this is renewed)
- Submit all medical expenses with your tax preparation as medical is 100% deductible for ARIZONA even though there is a FEDERAL 10 % or 7.5% of AGI limitation
- Upgrade your QuickBooks if you are a 2015 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.
- If applicable, I’d recommend becoming more knowledgeable in regards to the particular sales tax requirements for your business and respective filing deadlines. I’ve seen several penalties and continued confusion in this area this year and I’d like to help eliminate those if possible. (see me for more info)
- 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 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.
- Make sure you are in compliance with the new Health Care Reform for your employees (this is proposed to be repealed)
- 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 2017) and enter these into QuickBooks
- Reimburse employee business mileage at .535/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.
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 me.
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 in our NEW OFFICE LOCATION………..
LINDA ROZET, CPA, PC