News & Updates
March 9, 2022
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Certified Public Accountants and Consultants |
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Can you believe that we are already halfway through the 2021 tax season? With a little over 5 weeks left in the regular tax season, we at Griffing & Company, P.C. are working diligently to assist our clients with all of their Tax and Accounting needs. Here are some helpful tips and reminders to help our clients get through the tax season in one piece. |
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Gather & send in your 2021 Tax Documentation or File an Extension
By now, our clients should have received their yearly tax organizers to help them gather their documentation. The tax organizer is a helpful tool for many clients. Although not required to use, many of our clients find it very helpful to compare prior year tax information with what they expect to receive for the current filing year. Gathering as much documentation upfront could help save the client and their tax preparer a lot of time. Clients may also utilize the tax organizer to let us know of any changes they would like their preparer to know before filing. Included within the tax organizer is our annual tax preparation engagement letter. This engagement letter will need to be signed and submitted to our office before we can begin preparation on any returns. When the client is ready to submit their documentation, they can either drop it off to the office in person, mail it in (regular mail, priority mail, certified delivery, etc.), or request a secured link from their preparer or Admin staff to upload their documentation securely. During preparation, the preparers will let the client know of any missing information that is needed. We understand that certain documentation may be sent out at a later time but, clients should not wait to submit the documentation they currently have. If necessary, they may request to file an extension through October 17th to allow them more time gather documentation and file their return. Keep in mind that payments for expected amounts due on their returns are still required to be submitted by April 18th. To our Griffing clients, please try to turn in your documentation before Friday, March 11th. Any information received after the 11th will not guarantee to be filed by the April 17th deadline. We will do our best to get tax returns out as fast as we can.
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For those taxpayers that received the Advanced Child Tax Credit payments last year, be on the lookout for Form 6419, 2021 Advanced Child Tax Credit, which the IRS began sending out late December and into January 2022. The letter contains pertinent information regarding the total amounts of payments received for the credit. This form will verify that the information you enter within your tax return is correct. Incorrect reporting of these amounts could create processing delays.
This also applies to recipients of the third economic impact payment. The IRS has issued out Letter 6475, Third Impact Payments. Although most individuals have already received their economic impact payment, this letter helps determine whether taxpayers are eligible for the Recovery rebate credit for missing stimulus payments.
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Contact your Tax Preparer
Once the client has most, if not all, of their documentation ready to submit, they should get in touch with their preparer or call the office to set up a time to drop off their documentation. Our Admin team is ready to help guide our clients in the right direction, if needed. Some of our clients like to discuss their documentation in person or virtually with their preparer to let them know of any changes they expect for the filing season. If clients would like to schedule in in-person or virtual meetings with your preparer to discuss your tax information, let your preparer know as soon possible to set up your appointment or call the office and our Admin team can set up a meeting for the client.
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We understand that not all our clientele can make it to the office, so virtual appointments are available upon request. We will send a meeting invite via email using Zoom or Microsoft Teams.
Also, clients should make sure to check their emails regularly as their tax preparer might send them questions regarding their return. Their quick responses could help speed up the preparation process. Clients should not hesitate to contact their preparer if questions or changes arise.
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Expect Potential Processing & Refund Delays |
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The Department of Treasury has already warned the nation of potential processing and refund delays as the IRS begins the tax season with over 6 million unprocessed returns from the previous year. The Covid-19 pandemic has created enormous problems for the IRS institution as they experience staff shortages and little to no funding to provide solutions to fix major problem areas. Nonetheless, the IRS encourages taxpayers to obtain proper tax information needed and maintain it on hand to ensure they complete and file an accurate return. The general rule of thumb for keeping tax documentation is between 3-7 years. According to the IRS “filing electronically with direct deposit and avoiding paper tax returns is more important than ever this year.” Ensuring that your return is correctly filed could lessen the time of potential processing & refund issuance delays.
Nonetheless, most individuals receive their refund within 21 days of filing their tax return. The IRS is hoping to keep that promise to most taxpayers amid processing delays considering that the returns are accurately filed. The IRS recommends all taxpayers file for electronic deposit of their refund to avoid delays of receiving a paper check by mail. Postal services around the country have also been experiencing delayed delivery of mail since the Covid-19 pandemic began. Be sure to keep this in mind as you mail out important documentation.
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Minimize Contact/Frustration with the IRS by Using Online Tools
The IRS website has numerous tools that can help taxpayers get their questions answered. Due to the ongoing high call volumes and response times, getting in contact with an IRS representative may be difficult these days. According to statistics from IRS call volumes, only 11% of calls that the IRS received were answered last year. Many key officials of the institution are expecting the same outcome this tax season amidst talks of possible improvements. The IRS highly recommends using their online tools and sources to answer any questions before contacting the IRS for any reason. If a taxpayer is awaiting the status of their refund, they can go online to IRS.gov under the “refunds” tab to check their refund status, if needed.
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Make Payments Online Via Direct Pay
For individuals who owe tax or need to make estimated payments, they can do so electronically through the IRS Direct Pay portal. This will ensure that payments get processed in a timely manner and avoid fraud or theft from mailing payments via postal service. Be sure to have or remember your prior year general information, as the Direct Pay portal will need to verify the taxpayer’s prior year tax return information before proceeding to process payment. This information includes filing status, Name, social security number, date of birth and address used on the prior year return. Here is the link to the Direct Pay portal on the IRS.gov website.
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How we can help!
We want our clients to know that we are here for them every step of the way. Do not wait, give us a call to schedule an appointment or drop off your tax information. Our Griffing & Company, P.C. staff strive to provide the best service. Let us help you file on time this tax season.
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GRIFFING & COMPANY, P.C.
One Sugar Creek Center Blvd., Suite 650
Sugar Land, TX 77478
(281) 491-8866 Fax (281) 491-8998
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