| January, 2010
Dear Tax Client,
******FREE TAX ORGANIZER******
As always, I’ll send you a free tax organizer if you want one. I CAN SEND IT TO YOU VIA E-MAIL. AND, YOU CAN SEND IT BACK THE SAME WAY! Just ask for an “E-Organizer” over the phone at 800-726-0058 (remember to give me your E-mail address) or request one by E-Mail. Darwin@GOETS.COM will get one to you. PUT THE WORD “TAXES” IN THE SUBJECT LINE OF THE E-MAIL! Please check my “Tax Organizer” page on this web site, you can request one there also. It will make your taxes more complete and give you every deduction you can get. When you receive it, please use it. If you want one printed out and sent, just ask, I’ll send it along. This years Electronic Organizer is simple to use. I encourage you to use the organizer; it will speed up the finished product (your tax return) and give me more time to fine tune your return at the appointment.
******FREE ELECTRONIC FILING******
I provide electronic filing at no cost to you. It saves me time and money and I’m happy to pass that on to you as a lower overall fee. Direct deposit is also a good idea. If you are expecting a refund, direct deposit will get the money into your bank account faster than snail mail. With California it’s just a matter of days and the IRS is not far behind that schedule. There is no charge for this service.
STOCK & MUTUAL FUND STATEMENTS
If you made some sales or if your mutual fund did it for you, you have some reporting to do on your tax return. Interest, dividends, and capital gains will have to be reported on your return also. You’ll get a form 1099 from your broker/bank/fund/etc. Keep this form with your tax papers. If you sold any investments (stocks, bonds, mutual funds, etc.) I’ll need to know four things about it. 1. When did you buy it? 2. When did you sell it? 3. What did you pay for it originally? 4. What did you get for it when you sold it? Most of the time your form 1099 will show you when you sold it and what the sales price was. You’ll have to do some looking for the date of purchase and what you paid for it. If all else fails, call your stock broker or mutual fund and get that information. If it’s a mutual fund and you actually get someone on the other end of the phone, ask them for the ADVERAGE COST BASIS for that sale. Year end statements can also be helpful. Check and see if your records are complete for tax reporting. If not, start looking for the paperwork you’ll need now.
LONG TERM CAPITAL GAINS
A zero (yes 0) tax rate on long term capital gains and most dividends is in effect this year through 2010. For tax payers who fall into the 15% bracket for ordinary income, or lower, you may not pay any taxes on those gains.
SOCIAL SECURITY NUMBERS
Social Security numbers ARE REQUIRED for all names on a tax return. There are no exceptions. If you have changed your name for whatever reason make sure the name and SS# I use on your tax return match the computers at IRS and the Social Security Admin. The IRS computer matches every name, date of birth, and SS#. If they don’t match they will reject or delay your return. That means your refund will get rejected or delayed also.
FORM W-2 & 1099
When you get these forms please check them over carefully. Is your Social Security number correct? Do they show amounts for Fed and State taxes withheld? Social Security withholding? Is there an amount shown for SDI? In some cases the form 1099 must be filed with your return just like your W-2. These forms are what the IRS computer matches when the return is filed. If there is a mistake on one of them, call the originator and have them issue a corrected copy to you and the IRS. Please have these forms available when we meet to do your tax return.
SPEND THE MONEY-TAKE THE DEDUCTION
Don’t shy away from a single deduction because you fear that some bureaucrat somewhere will question it. If you spend the money and it’s deductible, put it in your tax return. If you don’t have a receipt, we’ll talk about how to get the deduction into your return. Case law and the IRS will allow deductions without receipts if you have a “reasonable way of estimating the expense”. It doesn’t apply to entertainment expenses or where the code requires specific documentation. As with everything else on your return, use some common sense but TAKE THE DEDUCTION!
IRS NOTICES YOU MAY RECEIVE
The IRS is a huge organization with a lot of little cubicles. Each one of these cubicles has the ability to send you a notice in the mail. Some of these notices just ask for confirmation of information already in your return. But some times one cubicle has no clue what the other cubicle is doing. That’s when it gets confusing. If you get a notice from the IRS, first check to see what tax year they are talking about. You usually can find that in the upper right hand corner of the page. Next, see what they want. You may have already sent them the information. Check your copy of the return and see if what they are saying is correct. A lot of the time it’s not. If you have any problem with understanding the notice, call me. Usually I can figure it out over the phone and come up with a solution. If that doesn’t fix it I’ll see what else is needed to resolve the problem. In any case, RELAX. The IRS sends out more and more of these notices each year. Just because you get one doesn’t mean you owe them anything or did something wrong on your tax return.
FILE EARLY
File your tax return as early as you can. Even if you end up owing them some money. I can file your return and you don’t have to send them the money until April 15th. Should you have a problem with the balance due, the installment plan is automatically granted to you in most cases. If you have a refund coming, get it in your bank where it will do YOU some good.
EXTENSIONS
Unless there is a compelling reason to file for an extension, don’t. My experience is that those of you who file extensions usually owe money with your tax return. Putting off the filing until October 15 only adds insult to injury for the penalties and interest that you pay when you do finally file. Save some money………file on time, even if you owe them money.
QUESTIONS DURING THE YEAR
hould you need to talk with me any time during the year, please call. I don’t charge my clients to talk over tax problems during the year in the theory that it’s better to work them out before December 31st. After the year has ended it’s more time consuming to me and costlier to you to fix things. It may take a short time for me to get back to you after you leave a message but be patient, I’ll return your call. Or you can E-Mail me at darwin@goets.com. Put the word “TAXES” in the subject line of the E-mail.
BACK ISSUES OF TAX RETURNS
More and more of you need to submit copies of your tax returns to get home loans, student loan assistance, etc. I provide all clients with a copy of their tax return when it’s filed. PLEASE PUT IT AWAY WHERE YOU CAN FIND IT. Should you need an additional copy of your tax return I’ll be happy to print one out for you. I’ll charge you $20.00 to do it though. The twenty bucks will cover the cost of reproducing the return and getting it in the mail to you. It’s no problem to do this, it’ll just cost you $20.00 to get it done. Save the money, remember where you put it.
Please recommend me to someone you know. If you’re happy with the service you receive please consider giving my card to someone who is looking for tax preparation. My business survives on your referrals. It keeps my fees the lowest in the area and the service the best you can get during the entire year. A referral is always greatly appreciated.
I look forward to completing your 2009 tax return with you. Please call for an appointment at your home. Days, Evenings, and Weekends. The phone numbers are:
San Luis
Obispo County
805-549-6471 |
Anywhere
Else
800-726-0058 |
The best revenge is
the tax return that pays the least taxes!
CALIFORNIA TAX EDUCATION COUNCIL LICENSE #A002034
WESTERN SURETY COMPANY BOND #15053660
E-mail questions to: Darwin@GoETS.com
|
