Newsletters

Dear Clients and Friends,
Season’s Greetings from all of us at Beverly and Bucker! We hope that the holidays find you in good health and high spirits. As we prepare for the upcoming tax season, we have some news for our clients and a few announcements.
We’re excited to welcome back Marcel Kay and Christy Gray this tax season! Marcel, a Fredericksburg native, has been with us for three years and has continued his work in the local community between tax seasons. This will be Christy’s second year with us and we are happy to announce that she has passed the Individual Tax portion of the Enrolled Agent Exam. These exams are tough and require a great knowledge of tax preparation. We’re very proud of Christy and glad to have her on the team. As always, we look forward to implementing our knowledge to provide our clients with the best service this tax season.
Last year was a doozy! We had several clients who were surprised by their results, mostly due to under-withholding. It appears that many payroll departments were using inaccurate tax tables and not taking out enough. We’ve checked in with several clients and it seems like the tax tables are more accurate this year, but it’s always good to make sure that you have enough federal and state tax withheld. IRS has provided a “paycheck checkup” on their website. Please visit IRS.gov/paycheck-checkup if you would like to see if you are underwithheld in 2019. If you have concerns, please contact me and we can discuss if an estimated payment is necessary. If you need to make an estimated payment for 2019 it will be due January 15th, 2020.
● Businesses: Note that Partnership and S-Corp business returns are due March 15th If you are a Corporation, S-Corp, Partnership, or Self Employed business owner, we request that you to drop off your information by January 31st, 2020. In many cases, our accounting department will need to complete Year-End Statements for your company that are then used to prepare your tax return. If we do not receive the necessary info to prepare your Year-End Financial Statements by Jan. 31, 2020, we may have to file an extension for your business return. This does not mean that you will incur penalty, be considered late, or be forced to file an extension for your personal returns. We intend to file all returns by or before April 15th. If you know that you would like an extension, feel free to call in now so that we can add you to our list. If you do not want an extension, it is imperative that we receive your information well in advance of the March 15th deadline.
● Investments: If you have investments and receive the brokerage statement in midMarch, we recommend that you drop off your tax papers or make your appointment before receiving these forms. This allows us to prepare the majority of your return in advance. We will be able to apply the brokerage statements as soon as they arrive and complete your return. If you wait to drop off all of your forms before receiving this statement, your taxes may need to be filed for extension.
● Appointments: Please schedule your appointment soon as spaces fill up quickly. If you are unable to find an appointment with your preferred tax preparer, please know that we are all here to provide quality service and prepare accurate tax returns to get you the best results.
● Drop off service: For your convenience, we also offer a drop-off option which saves many clients from having to take time away from work. We are happy to correspond via phone or email while preparing dropped off returns if there are any questions or concerns. Documents can be dropped off at our front desk during office hours or in the drop-off slot to the left of our front door after hours. Please include a phone number with any information you drop off.
● Client Organizer: Client organizers serve as a type of checklist for your tax information. If we’ve prepared your returns in the past, your organizer will show items that you have provided in prior years. Please contact us to request a client organizer if needed. We can send the organizer via mail or email, or you can pick one up in person.
IRS has been sending more letters than we have ever seen before. We responded to twice as many letters in 2019 than we have in any other year. It is possible that this is due to IRS automating more of its correspondence in an attempt to minimize fraudulent returns. Regardless of the reason, it appears that this will continue for the foreseeable future. Know that if we fail to report information that you have provided to us, causing IRS to send a letter of adjustment, we will correspond for you free of charge. However, due to the recent increase in the volume of letters from IRS, we must charge a fee to respond to letters not caused by preparation error.
We would like to reiterate that the IRS will never contact taxpayers via phone. If you receive a phone call from a person or machine claiming to be from the IRS, please disregard or call us immediately. We are here to answer any questions concerning correspondence to or from IRS.

Tax Alerts
December 01, 2020
Tax Briefing(s)

The IRS has released the annual inflation adjustments for 2021 for the income tax rate tables, and for over 50 other tax provisions. The IRS makes these cost-of-living adjustments (COLAs) each year to reflect inflation.


The IRS has released the 2021 cost-of-living adjustments (COLAs) for pension plan dollar limitations and other retirement-related provisions.


The U.S. Supreme Court heard oral arguments in California v. Texas, the latest challenge to the Affordable Care Act (ACA). The ACA expanded insurance coverage, and includes popular provisions such as required coverage of preexisting medical conditions.


The IRS has provided guidance to taxpayers that want to apply either Reg. §1.168(k)-2 and Reg. §1.1502-68, or want to rely on proposed regulations under NPRM REG-106808-19.


The IRS has issued final regulations to update the life expectancy and distribution period tables under the required minimum distribution (RMD) rules. The tables reflect the general increase in life expectancy. The tables would apply for distribution calendar years beginning on or after January 1, 2022, with transition relief.


The IRS has released guidance on its website for employers and employees regarding deferral of employee Social Security tax under Notice 2020-65, I.R.B. 2020-38, 567.


The IRS intends to issue proposed regulations to clarify that state and local income taxes imposed on and paid by a partnership or an S corporation are deductible by the partnership or S corporation in computing non-separately stated taxable income for the year of the payment. The proposed regulations are intended to provide certainty to individual partners and S corporation shareholders in calculating their state and local tax (SALT) deduction limitations.


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