2023 Tax Season Overview

Here we go!!

Now that all the presents have been unwrapped and the new year has been welcomed in, we are gearing up for the 2023 tax season. We want to alert you to a few key developments and changes

USPS and Delivery Changes

Keeping your personal data secure is a responsibility we take very seriously.

This past year, we had several cases where data we mailed to clients (or that clients mailed to us) was never received or was received months after the postmark date. Although the US mail system has its benefits, we do not feel it is a reliable and secure method to deliver something as important as tax returns and supporting documentation to our clients.

As a result, going forward, our default method will be to send tax returns and supporting documentation electronically via our secure client portal.

If a taxpayer chooses not to use the portal, the options (in descending order) are

Authorize us to e-mail the return (understanding this is not as secure as the portal);
Pick-up the return in person at our office;
Authorize us to mail the return to the client along with a minimum mailing fee of $10.

We don't make this change lightly but feel it is a more reliable, secure and efficient method to handle something as sensitive as your tax return.

Selective focus of usb drive on a paper of binary code.

Speaking of the Client Portal...

We also encourage all of our clients to use the client portal to send us your tax documents rather than the US mail system.

For your convenience, we have included a link to the portal below. If you have not used it in awhile, you may need to follow the "forgot password" prompts. Please make sure any documents uploaded are in PDF format. You can also upload excel spreadsheets and QuickBooks files. We get notified each time you upload a file so all we ask is that you let us know when you have finished uploading all 2023 tax documents and then we will get started on your return and notify you when the draft return is ready for review.

If you choose to mail your supporting tax documentation to us, only send us copies and keep the originals for your files.

Client Portal

The big Tax Day_ the 15th_ is circled on a white calendar with a red marker

Here are the key dates for the upcoming tax season

Due dates to file on time

(or to file an extension)

March 15, 2024

S-corps (Form 1120S)
Partnerships (Form 1065)

April 15, 2024

Individual Returns (Form 1040)
C-corps (Form 1120) calendar year filers
Trusts (Form 1041)

Due dates if extension filed

Sep 16, 2024

S-corps (Form 1120S)
Partnerships (Form 1065)

October 15, 2024

Individual Returns (Form 1040)
C-corps (Form 1120) calendar year filers
Trusts (Form 1041)

A REMINDER ON EXTENSIONS

An extension only extends the time to file your official tax return. An extension does not extend your time to pay the expected taxes owed. Failure to do so will subject you to additional penalties and interest.

Quarterly Estimated Payment Dates

For those making quarterly estimated payments (toward 2024 taxes), here are the due dates

Q1 - due April 15, 2024
Q2 - due June 17, 2024
Q3 - due September 16, 2024
Q4 - due January 15, 2025

Checking of account statements. Taking inventory of checking account_ all credit cards and receipts from the supermarket

Tax Organizers

As a reminder, the tax organizer can be a useful tool as you plan for the upcoming return. For existing clients, it allows you to see your prior year data which may help you remember items you had forgotten. For new clients, although the organizer does not have your prior year data, the checklist can provide a useful memory jogger as well.

We do not require clients to use the organizer. In the coming weeks, for those existing clients that have used them in the past, we will automatically send you a 2023 organizer using the client portal (or other method noted above).

If you are an existing client that has never used an organizer but want to try it this year, please reach out to us and we will prepare one for you with your prior year data.

For new clients, the button below will take you to a blank version of the tax organizer that you can print out and manually complete. You can also go to our website to find the blank organizer as well.

Blank Organizer

microphone on a stand up comedy stage with reflectors ray_ high contrast image

TAX HUMOR

There are 3 types of CPA's - those that can count and those that can't...

Why did the IRS audit the chiropractor? They owed back taxes...

How was copper wire invented? Two CPA's were arguing over a penny...

UPDATES FOR OUR BUSINESS OWNERS

Employee Retention Credit ERC is shown on a business photo using the text

ERC Update

As noted previously, the IRS announced a program to allow any business that received ERC rebates the opportunity to return the ERC funds if they feel they were misled on their eligibility for the program.

The IRS has "sweetened" the pot by announcing that any business taking advantage of this program will only have to pay back 80% of the ERC funds and there will be no underpayment interest or penalties. In addition, the 20% discount is not taxable. This program expires after March 22nd, 2024.

If interested in this program, please call our office.

Conceptual business illustration with the words beneficial ownership

BOI Update

Here is the latest on the BOI topic we introduced in last month's newslettter:

It does not appear the efforts to delay the implementation of this will be successful.
As a reminder, existing businesses have until Jan 1,2025 to file unless there is a change in BOI during the year. New businesses formed in 2024 have 90 days from formation to file.
The BOI reporting form has now been released. We are reviewing the form to determine if this is something we can assist with (and at what cost) or if this is something the services of a lawyer are better suited for.
In addition, you can certainly choose to file the BOI data on your own. The link below will take you to the BOI filing website in case you want to explore filing on your own.

BOI Filing Website

Balcerzak Financial Services