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As 2021 is coming to a close, we would like to thank each of you for the opportunity to assist you with your accounting and tax service needs this past year.  Your trust in us has helped support 12 local families!  Despite the challenges we've faced over the last few years, we hope this finds everyone healthy and hopeful for the coming year.  Read on for tips on how to make tax preparation easier, information about tax season and other related information.
Our office will close at
1 pm on Thursday, December 30th
and reopen at 8 am on Monday, January 3rd. 
We wish you all a Happy New Year!  

Organizers & Appointment Cards

We will be mailing out the tax organizers and appointment reminder cards the week of January 3rd. 

If you are normally pre-scheduled for a tax interview, you will receive a green postcard with the date and time.  This year we are assuming all appointments will be in person, but if you prefer a phone/Zoom meeting instead please contact our office.  Masks will be required to be worn at all times while visiting our office, regardless of vaccination status.  If you are ill on your scheduled appointment date we will gladly switch your appointment to a phone/Zoom meeting or try to reschedule if time allows.

We have changed our organizer format this year to a more condensed version.  It will still show all the items you had last year, it just won't have all the spaces to fill in the amounts.  Please ignore the suggestion on the organizer to "attach" tax documents to the organizer.  It's much easier for us if you do not staple or otherwise attach items to the organizer.

New IRS Information Letters

The IRS has announced that it will be issuing the following two separate information letters to taxpayers in January 2022:

  • Letter 6419, containing the amount of Advanced Child Tax Credit payments received by the taxpayer for 2021 and the number of qualifying children used to calculate the advanced payments; and
  • Letter 6475, containing the amount of Economic Impact Payments received by the taxpayer for 2021, including initial payments and any “plus-up” payments received.
It is VERY important that you bring these letters in with your tax documents this year.  Both the Advanced Child Tax Credit payments and the third round of Economic Impact Payments must be reconciled on the 2021 income tax returns.  We learned last tax season with the first two rounds of Economic Impact Payments that it is very difficult to obtain this information online.  PLEASE watch for these letters and save them to bring in at tax time.
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Tax Season Tips:

There are several things that clients can do to facilitate tax preparation.  We have compiled a list for you to refer to when gathering your items.

  1. Bring back the organizer we send - even if you don't fill it out.
  2. Fill out at least the Questionnaire section of the organizer if nothing else.
  3. Take all of your tax forms out of the envelopes (or at least open all of them).
  4. Please provide all the IRS reporting forms such as W-2’s, 1099’s, 1098’s that you receive.
  5. We need all of the pages of your broker 1099, not just the first page.
  6. Do not use staples - we scan or photocopy your documents so this wastes a lot of time removing staples.
  7. Please don't use red ink.
  8. Please don't use highlighter, but if you must, please keep it to yellow (no orange/pink/blue, etc.).
  9. You can just provide the total medical expenses paid broken down into categories listed on the organizer rather than bringing in every receipt.
  10. Check with your children regarding dependency status before they file their returns.
  11. If your total noncash charitable donations exceed $500 we need the details of what was given, to whom and on what date.
  12. Please don't bring hanging folders - they snag clothes and fingers.
  13. Try to bring/send your items in as few trips/emails as possible. Less chance of something getting misplaced/overlooked.
  14. Photos of your documents are not easy for us to work with.  Often times they are too blurry when made large enough for us to read.  A PDF is best.  There are scanning apps that you can put on your phone to do this.

Disability Claim Fraud

We have been notified by two clients of potential Disability Insurance Claim frauds.  Both received notices which appear to be from the EDD stating that a disability claim had been filed by an employee.  The claim was sent to the C corporation as if the owner/officer had filed a claim for disability.  It is unclear whether someone is attempting to file a fraudulent claim on their behalf or if the notice itself is a phishing attempt.  

We have also received forms from clients which appear to be government tax forms but are actually a company trying to sell their service.  They propose to fulfill your state registration requirements for the low price of several hundred dollars.  Usually the form they are offering to complete is easy to do online and only requires a $25 fee to be paid.  

Have you been to our website?
You can find our office hours, past newsletters and other resources on our website.  
Copyright © 2021 Merrell, Irwin & Associates, All rights reserved.

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