Dear Clients:
Happy New Year and welcome to 2019!
2018 produced important tax changes that will impact all taxpayers. Please review the information below that will assist you in getting organized and prepared for this tax season.
Our Engagement Letter has a new look! To simplify the process, we are using just one Engagement Letter for all individuals and businesses. Taxpayers only have to complete the one EL for all of their tax filings. The Engagement Letter now includes a 'Payment Authorization' page, which states that your accounting fees are due and payable upon completion of your tax return.
Please note that work will not be started on your tax return until your completed and signed Engagement Letter has been received by our office.
The 2018 Engagement Letter can be found on either of our websites and signed and submitted electronically:
Software:
You may be familiar with the two software programs we have used in the past:
Right Signature: You will receive secure documents from our office through Right Signature when signatures are required
ShareFile: ShareFile is the software we have selected to securely transfer and store files. In the next few days, you will receive an invitation email to access your unique ShareFile folder. The email will come from: mail@sf-notifications.com. You MUST accept the invitation from ShareFile, after which you may set-up your account and begin storing and sharing files with our office.
Please note that our office will no longer provide paper copies of tax returns (unless requested). Instead, we will load your return(s) in your ShareFile to be retrieved by you, as needed.
2018 Federal Tax Reform Law
2018 saw the largest federal tax reform legislation (in the last 30 years) signed into law. All taxpayers will see major changes to their 2018 federal tax returns. The following are some key points:
Some taxpayers will pay less tax, but due to problems with the IRS’s published withholding tables, many taxpayers will be under-withheld on their paychecks;
Prepare your tax documents as you have in the past. Although there are new (deductible) restrictions on your federal return, many states did not conform to the law.
Bitcoin & Other Virtual Currencies
With the rapid fluctuation in value of virtual currencies and the recent ability to trade Bitcoin futures, the IRS is placing special scrutiny on these transactions. Please visit the following 'CoinTracking' website to utilize their reports as a guide on how to properly track your trading activity.
Tax Return Due Dates:
W-2s and 1099s: January 31, 2019 for Year 2018
City of LA Business License renewal: February 28, 2019
Partnerships: March 15th for calendar-year taxpayers; others are due by the 15th day of the third month following the close of the taxable year
C Corporations: April 15th for calendar-year taxpayers; others are due by the 15th day of the fourth month following the close of the taxable year
S Corporations: March 15th for calendar-year taxpayers; others are due by the 15th day of the third month following the close of the taxable year
Non-Profits: May 15th for calendar-year taxpayers; others are due by the 15th day of the fifth month following the close of the taxable year
Estates & Trusts: April 15th for calendar-year taxpayers; others are due by the 15th day of the fourth month following the close of the taxable year
Thank you!