C. Cook, CPA

Because CSX has closed multiple railroad crossings in our area for maintenance causing havoc with the afternoon traffic, we will be closing our office early today.

Attention crypto owners: most activity regarding your cryptocurrency is taxable, including hard forks and exchanging one cryptocurrency for another.

Made a killing with crypto in 2021? How to calculate your tax bill After a record-breaking year for cryptocurrency in 2021, many investors may soon face a hefty bill for their good fortune. Here’s how to calculate taxes.

The IRS is starting to send out letters to those who received advanced child tax credit payments and the third round of stimulus payments. You'll need to include your letter with your tax documents.

IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments | Internal Revenue Service COVID Tax Tip 2022-03, January 5, 2022 — The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January.

You’re required to report all your income on your tax return, whether or not you receive a 1099, but starting next year you’re more likely to receive a form if you use peer-to-peer payment methods. Time will tell how well the third-party networks will differentiate between taxable and non-taxable transactions.

Getting Paid By Venmo or PayPal? The IRS Will Know

For those who claim the standard deduction, for 2020, you can deduct up to $300 of cash (which includes check and credit card) contributions. The most recent bill signed by the President extends this to 2021 and, for married filing jointly tax returns, increases the amount to $600 for next year.

Charitable Tax Deductions: An Additional Reward for the Gift of Giving | Kiplinger Because of the worldwide pandemic and related restrictions, your donations to charity are needed more than ever this year. And, with charitable tax deductions, your generosity will be rewarded.

Please let us know if you want to do some tax planning before the end of the year.

11 Year-End Moves to Lower Your 2020 Tax Bill | Kiplinger What you do between now and the end of the year can have a significant impact on how much tax you have to pay next April.

Don’t forget to put your letter with the amount of your economic impact payment with your 2020 tax stuff! For those who are eligible for a higher amount based on the 2020 tax return, you’ll get the credit on your return when filing next year.

Keep Economic Impact Payment notice with other tax records | Internal Revenue Service COVID Tax Tip 2020-74, June 23, 2020

For small businesses, here are some answers about the SBA loans. Their site has a lot of good information.

https://www.uschamber.com/co/run/business-financing/commonly-asked-questions-coronavirus-small-business-loans

It’s official! IRS Notice 2020-18 extends the due date for 2019 income tax returns and first quarter 2020 estimated tax payments from April 15 to July 15.

Though we plan to reduce some of our extra tax season hours to take care of ourselves and our families, we will keep working on your income tax returns, while assisting our business clients with applying the news laws being enacted.

Per IRS guidance for individual taxpayers, taxes due 4/15 (balances due for 2019 tax returns and 1st quarter estimated tax payments for 2020) may be paid by July 15, 2020, without incurring penalties or interest for amounts up to $1 million.

Based on this press conference this morning, the 4/15 deadline remains, unless an extension is filed, but any balance due paid by 7/15 will not have interest or penalties. We are still waiting for details from the IRS for additional details.

If we have your information, but you are willing to have an extension, please let our office know. Between kids home from school, time spent cleaning/sanitizing, and lowered immune systems from us just being exhausted, we'd like to file more extensions than usual and cut back the extra hours spent in the office.

If further restrictions are put in place and we are not permitted to come to the office (as in San Francisco right now), extensions will most likely be filed for all returns not yet completed at that time.

We continue to monitor the constantly changing situation. Stay healthy, y'all!

Like everyone else, we are monitoring the COVID-19 situation and making decisions about how it affects our clients and our team members. We are practicing the CDC recommendations as much as possible. Though we have no hand gel to offer clients, we do have soap and water and are using disinfecting wipes for commonly touched surfaces.
We are encouraging clients who have not yet given us their documents to drop them off or request an account on our secure portal to upload them.

Currently, we are here and working. If the tax deadline gets extended, we will continue to work on your tax returns, but we may cut back our hours to take care of our families and ensure we’re getting enough rest for our own immune systems.

Keep an eye on our page for future updates. Stay healthy, y’all!