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This year is flying by!  Here are some dates to keep in mind:

Sept. 15th - 3rd quarter Federal estimates & extended S corp and Partnership
                     tax returns are due (CA does not have 3rd qtr estimates)
Sept. 30th - extended Trust tax returns are due
Oct. 15th  -  extended Individual tax returns are due

If your return was extended and you haven't provided all of your information, please get it to us as soon as possible so that we can meet the upcoming deadlines!

Our office will be closed on Monday,

Sept. 6th in observance of Labor Day.

IRS Correspondence

Many of our clients have recently received a letter from the IRS referring to their "inquiry of April 30, 2021."  This letter is referring to the Protective Claim for refund of additional Medicare tax and/or net investment income tax liabilities that we filed on your behalf during tax season.  This letter basically is confirming that the IRS received the claim.  Unfortunately, the court case that precipitated this claim was rejected and taxpayers will not be getting a refund of these taxes at this time.  

We have a new phone number for
sending info via texts -

(530) 519-2477 
Please update your records - all previous text numbers have been disconnected. Be sure to identify yourself in your texts so that we can get the information to the appropriate staff.

Business Meals Deductions

Recent tax law changes provide a 100% deduction for meals and beverages provided by a restaurant during 2021 and 2022.  A "restaurant" means a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the restaurant's premises.  A restaurant does not include a business that primarily sells prepackaged food or beverages such as a grocery store, liquor store, drugstore, convenience store or specialty food store.

Remember the following when determining whether the 100% meals deduction applies:
 Business meals that don’t qualify for the 100% deduction, such as those purchased from a grocery store, can still qualify for the 50% deduction;
 The 100% meals deduction applies to amounts paid or incurred after December 31, 2020, and before January 1, 2023 — in other words, we look to the date of the meal, not the tax year of the business claiming the deduction.  This means for fiscal year entities, this could affect more than two tax years.

We suggest creating separate Meals Expense accounts for 100% deductible expenses vs. 50% deductible expenses to make it easier to calculate your meals expense for your tax return.

We are looking for experienced bookkeepers/tax preparers. If you or someone you know is interested, please go to our website for more information.

Rebuilding Records after a Disaster

After a natural disaster, taxpayers need records to help them prove and recover disaster-related losses. This may be for tax purposes, getting support from federal assistance program or for insurance claims.

While personal or business property may have been destroyed, all hope is not lost. Here are some steps that can help people reconstruct important records.

Tax records

  • Get free tax return transcripts immediately using Get Transcript on
  • Order transcripts by calling 800-908-9946 and following the prompts.
Financial statements
People can gather past statements from their credit card company or bank. These records may be available online. People can also contact their bank to get paper copies of these statements.

Property records
  • To get documents related to property, homeowners can contact the title company, escrow company or bank that handled the purchase of their home or other property.
  • Taxpayers who made home improvements can get in touch with the contractors who did the work and ask for statements to verify the work and cost. They can also get written descriptions from friends and relatives who saw the house before and after any improvements.
  • For inherited property, taxpayers can check court records for probate values. If a trust or estate existed, taxpayers can contact the attorney who handled the trust.
  • When no other records are available, people should check the county assessor's office for old records that might address the value of the property.
  • Car owners can research the current fair-market value for most vehicles. Resources are available online and at most libraries. These include Kelley's Blue Book, the National Automobile Dealers Association and Edmunds.
Copyright © 2021 Merrell, Irwin & Associates, All rights reserved.

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