Tax Season 2018

Tax Season 2018

Happy New Year! We have an interesting year ahead of us with many tax changes looming. Obamacare will be around through 2018. I am here to hold your hand and help you navigate all the changes this year and beyond.

If you are buying or refinancing a new house between January-April, I would appreciate as much notice as possible if you will need copies of prior tax returns. I am sure you can appreciate how crazy-busy tax season is and when extra requests come in, it is a challenge to meet them. Since I do provide a copy of your tax return each year, I will be charging a fee of $65.00 should I need to send copies of tax returns to bankers, etc. You will be required to sign and date a special consent for me to release information to third parties. Usually, this can be accomplished with RightSignature to keep the process moving.

Here are some deadlines to keep things on track for all of us:

Client Organizers –January 2018

– Client Organizers will only be provided upon request. Send me an email with your request and I will upload an organizer to your SmartVault account.

– If you are a new client this year, welcome aboard! I can either send you a generic organizer or you can use the checklist (LINK HERE) provided to gather your documents.

1099 Issuance-Due by January 31, 2018

– If you paid anyone for services over $600 this year for your business or rental property, you are required to issue them a 1099-MISC. Included in this group would be any independent contractors used for your business or rental property, child care providers you pay directly and home health providers. The exception would be: if you paid anyone with a credit card, you are not required to send a 1099-MISC as those payments will be reported by the credit card company.

– If you paid an attorney in 2017, you will need to send a 1099-MISC for any payment.

– If you paid interest to someone who has loaned you money, you should issue a 1099-INT and if it is for a home loan, they can, in turn, issue you a 1098.

– If you would like me to file the 1099s for you, please provide completed W9s (each independent contractor should have filled one out for you), the amount you paid to each person, and what type of payment (Non-Employee Compensation, Interest, Dividends, Rent) was paid to each person. A fillable PDF W9 can be download from I will send out the 1099s to each recipient and electronically file with the IRS. Fees will vary according to the number of 1099s that need to be issued.

Quarterly Payroll Reports and W2s – Due by January 31, 2018

– It is a good idea to have me file your 4th quarter payroll reports and W2s for you as I can catch and fix any errors before final forms are mailed to employees and the IRS.

– Please call me as soon as possible to get on my schedule if you would like me to do your 4th quarter payroll reports and W2s.

Engagement Letters – I will need a signed engagement letter from all clients this year. A letter will be available at my office or I can email to you. You may also download the engagement letter here:

Personal Tax Engagement Letter (DOWNLOAD)
Business Tax Engagement Letter (DOWNLOAD)

Consent to Use – If you need me to furnish a copy of your tax return to a banker, mortgage broker, or some other third party, I will need send you a Consent form to sign and date before I can release information to a third party.

I also have an in-house Consent to Use that allows me to contact you about tax planning. This consent is part of the tax package I return to you.

Electronic Filing of Individual Tax Returns begins late January 2018 (date to be announced). I must have your 2017 tax information no later than March 17, 2018, in order to timely file your tax return before April 17, 2018. For tax returns put on extension I must have your information by September 16th in order to file your return by the final deadline of October 15. I will no longer put returns on extension automatically. Please be sure to contact me to request an extension should you require one.

Corporate and Partnership Tax Returns are due on March 15, 2018. I need to have your information by February 15, 2018, to ensure I file your return in a timely fashion. Please contact me if you need an extension.

Individual, and Fiduciary Returns are due by April 17, 2018. I will need your information by March 17, 2018, to file your return on time.

Specific Reporting Documents – Some tax documents such as K1s, HSAs, or 1098-Bs tend be issued near or after the April 15 deadline. If you expect one of these documents, please contact me and I will go ahead and file an extension just in case.

Business License and Property Tax Returns – It is a good idea to involve me in the process of filing out business license and property tax returns as localities are now cross checking their reports with tax returns and issuing penalties for underreporting information. Please let me know if you want my assistance in filing out these forms.

New Regulations regarding repairs has been passed and if you have rental property or a Schedule C business, I may need to file Form 3115 for you to be in compliance. The completion of this form will be billed in addition to the cost of the personal tax return.

Additional New Regulations:

The PATH Act now mandates that tax returns including the Earned Income Tax Credit or Additional Child Tax Credit resulting in a refund or credit will not be issued the refund before February 15. This change begins January 1, 2018, and will hopefully provide the IRS additional processing time to prevent lost revenue due to identity theft and refund fraud.

If you live in certain counties of North Carolina, you may qualify for tax relief in the form of extended filing deadlines.

Looking forward to a prosperous and sparkling 2018 with you!