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Ted Phillips, The Del Ray CPA
(571) 312-1169
FAX (571) 227-7907
114 E. Randolph Avenue
Alexandria, VA 22301
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Mailing and Filing Delays
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IMPORTANT DATES
February 1, 2021
Forms W-2 due to household employees; Forms 1099-NEC due to contractors.
March 8, 2021
Please plan to have all tax documents in to the office by this date for timely tax preparation.
March 15, 2021
S-Corporation and Partnership tax returns due
April 15, 2021
Individual Income taxes due to IRS and many states; Virginia returns due May 1. Returns also due for trusts and estates with calendar year ends.
If we extend your returns, tax payments are still due April 15th.
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In recent weeks, we have observed significant delays both in mail delivery and in tax return processing by IRS and state taxation departments due to COVID-related staffing changes. It is advisable to plan for longer processing times this tax season.
Our organizer packages were mailed out a couple of weeks ago, but it is quite possible that some of you have not yet received them, and we do understand if this causes a delay in your response. Unfortunately, this general slow-down of the US Postal Service may mean that tax forms arrive in your mailbox, and your packages come to us, later than they would under normal circumstances. We are always able to extend returns to give ourselves more time, but another option is to request that your forms be made available to you digitally from employers and financial institutions, and forward these digital copies to us through our Intuit Link client portal (see below).
Based on returns and letters we have recently sent to IRS and various states, we are noticing that it is taking departments much longer to respond to us or distribute refunds--in some cases we even get a second request for something we have already sent in. For now, we can only be patient and recognize that their offices are clearly overloaded and understaffed. At this point, IRS says it will not accept 2020 tax returns until February 12, 2021. Hopefully, this longer delay at the beginning of the season is giving them some time to catch up.
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For the benefit of new and returning clients: once we have a draft of your tax return complete, we will likely send you a short list of questions to help us provide complete and accurate tax reporting. I like to have documented responses to our questions, which is why I prefer email for this short list. I will ask direct questions, and number them.
To expedite the processing of your returns, we appreciate one response with complete and direct responses to each of our numbered questions. If you have the answer to some, but not all, of the questions, I recommend waiting to send the response until you have all the answers ready. Short responses in a minimum number of emails will reduce the time and therefore the cost of tax preparation. Thank you!
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Generally, I need to have written permission from my clients before I discuss their tax returns with anyone else. If you want or need me to communicate with a third party, we are happy to provide you with a consent form to sign, giving me that ability. Third parties can include your financial advisors, other CPAs, attorneys, caretakers, extended family, trustees and executors, etc. We do not need a form signed to speak to your spouse or dependent children.
Please send an email to my office manager, [email protected], if you would like a blank form to complete. |
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Do You Own Virtual Currency? |
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One of my Tax Questions asks if you obtained cryptocurrency such as Bitcoin at any time during 2020, and if you sold any. The IRS wants to know if you dealt with virtual currency in any way, and I cannot file your returns without checking Yes or No.
If you purchase and sell cryptocurrency, it is treated like stocks or other property and we must report capital gains and losses. Make sure that you or your financial institution is tracking: the cost of the virtual currency in US dollars when you purchased it (basis), the exact amount you paid, and how long you have held it for. If you are paid for goods and services with cryptocurrency, it is taxable income, and if your employer paid you with it, it should show up on your W-2.
Even if you mined your own Bitcoin, were given it for free, or bought it without selling any, please let me know so we can answer the question accurately on your returns.
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Please contact the office if you have not yet used the portal and would like to be invited. |
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Ted Phillips, The Del Ray CPA
(571) 312-1169 | FAX (571) 227-7907
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