The IRS is spitting out tax notices more than ever before. The IRS is understaffed and overwhelmend. These tax notices are sent out electronically and are not touched by a human being. Our TAX RESOLUTION SERVICES are top knotch and can help you regain your PEACE OF MIND and assit you with your IRS problems. Let us help reduce your anxiety and stress and get you into a payment plan and/or work your case to negotiate with the IRS and find the best solution for you and/or your business.
Starting in 2021 we are also introducing our CLIENT CARE PACKAGE for individual TaxPayers and Business TaxPayers. Your Time is Valuable! Don’t let the IRS Disrupt your life! Tax identity Fraud is on the rise. In the past 2 years, more than 1,500,000 Americans had their tax identity stolen with $6.2 Billion, yes, you read that correctly, $6.2 Billion dollars that was fraudulently claimed. Our Client Care Package includes an Audit Protection Plan for more details ask us for our Brochure! We offer 3 levels of support for Business Tax Returns and 2 levels of support for Individual Tax Returns. Our plans cover the following tax returns: 1040-Individual, 1120 and 1120S Corps and 1065 partnerships. Each year you purchase this plan which is now part of our services, your tax return will be covered for 3 years from the date filed with the IRS to assist if you get an IRS tax notice or audit letter. For all the details we can provide you with our Client Care Package Brochure. This service is NOT outsourced to a 3rd Party vendor. Compass Accounting & Business Solutions will be on your side and are here to protect, inform and provide you quality solutions and service so you can relax and know we are here to reduce your stress and anxiety when it comes to working with the IRS – Internal Revenue Services.
“Worry-Free” Client Care Package
Beginning this year, you will be automatically included in the Compass Accounting & Business Solutions “Worry-Free” Client Care Package (which also includes Audit Protection) covering your 2021 income tax return for IRS and/or State correspondence response, Audit Representation and Tax Identity Theft, and more for one low annual fee. The Client Care Package fee will be added as separate line item on your Tax Preparation Invoice. Please see enclosures which explains the Package in detail.
As you know, your return may be selected for review by the taxing authorities, especially given all the recent and anticipated tax law changes as well as all the governmental stimulus plans. Fees associated with audit work, including responding to notices, not due to our error, is included in the Client Care Package Plan annual fee. All the information for the Client Care Package is provided with this letter.
If you do not participate in the Client Care Package Plan and you receive a notice for any reason (other than due to our error), you will be billed for the services that would have been, otherwise, covered by the Client Care Package at our hourly rate of $275.
As provided in the Client Care Package details, participation in the program allows us to receive IRS/State letters and notices faster so we can address any issue before the IRS wants to audit your return and assess additional tax. Your final tax preparation invoice will include a separate line item for the (“Silver” or “Gold/VIP”) level protection package depending what is included on your return.
As an added benefit of being in my Client Care Package Plan, it also includes any work we must do regarding Tax Identity Theft in case your tax ID is stolen, which is rampant these days. Being in the Client Care Plan is an inexpensive way to insure your tax account is restored back to normal in case your tax identity is stolen.
Key tax considerations from recent tax legislation
Many tax provisions were implemented under the American Rescue Plan Act that was enacted in March 2021. This act aimed to help individuals and businesses deal with the COVID-19 pandemic and its ongoing economic disruption. Also, some tax provisions were passed late in December 2020 that will impact this filing season. Below is a summary of the highlights in recent tax law changes to help you plan.
- Employee retention credit (ERC). The ERC encourages businesses to keep employees on their payroll during the pandemic. It is a refundable payroll tax credit that may be claimed by eligible employers who pay qualified wages to qualifying employees through September 30, 2021.
- Small Business Administration (SBA) Loans. Though the PPP ended on May 31, 2021, existing borrowers must still apply for PPP loan forgiveness. There are also other COVID-19 relief measures offered through the SBA. We can help you navigate the tax and financial complexities of these programs.
- Economic impact payments (EIPs). The American Rescue Plan Act created a new round of EIPs that were sent to qualifying individuals. As with last year’s stimulus payments, the EIPs were set up as advance payments of a recovery rebate tax credit. If you qualified for EIPs, you should have received these payments already. However, if the IRS owes you more, this additional amount will be claimed on your 2021 income tax return. If you received an EIP as an advance payment, you should receive a letter from the IRS. Keep this for record-keeping purposes to help us determine any potential adjustment.
- Charitable contribution deductions. Individuals who do not itemize their deductions can take a deduction of up to $300 ($600 for joint filers). Such contributions must be made in cash and made to qualified organizations. Taxpayers who itemize can continue to deduct qualifying donations up to 100% of their adjusted gross income (AGI) in 2021 (up from 60%). There are many tax planning strategies we can discuss with you in this area.
- Required minimum distributions (RMDs). RMDs are the minimum amount you must annually withdraw from your retirement accounts (e.g., 401(k) or IRA) if you meet certain criteria. For 2021, you must take a distribution if you are age 72 by the end of the year (or age 70½ if you reach that age before Jan. 1, 2020). Planning ahead to determine the tax consequences of RMDs is important, especially for those who are in their first year of RMDs. Also, you may still make distributions directly to charities up to $100,000 and keep those distributions out of adjusted gross income.
- Child tax credit. As part of the American Rescue Plan Act, there were many significant changes to the child tax credit, such as the credit:
- Amount has increased for certain taxpayers
- Is fully refundable (meaning taxpayers will receive a refund of the credit even if they do not owe the IRS)
- May be partially received in monthly payments
- Is applicable to children aged 17 and younger
- The IRS began paying half of the credit in advance monthly payments beginning in July – some taxpayers chose to opt out of the advance payments, and some may have complexities that require additional analysis. We will be here to help you navigate any questions to make sure you get the best benefit for your family.
- Keep records of the payments received and submit it to us so we can determine any adjustments to be made.