Thanks for your business

2021 Tax Season "Over"

If you heard a loud cheer coming from S. Colorado Blvd last night, there is a good chance it was our team celebrating the "finish" of the 2021 tax season!

Before we share a few facts and updates, we want to first THANK YOU for your business. We love what we do and are very grateful to have such loyal and enthusiastic customers to deal with - thank you!

FUN FACTS

BUSINESS RETURNS

Approximately 80% of our business tax return clients (S-corps, C-corps and partnerships) filed on time. This is up from 65% in 2020.
We had approximately 30 business clients take advantage of PPP forgiveness to the tune of $2.5M in 2021.
We had 4 of our restaurant clients take advantage of the RRF program.
We had approximately 20 business clients take advantage of ERC program so far.

US Treasury Form 1040 for an Individual Return in close up in a money_ f...

PERSONAL RETURNS

Approximately 65% of our personal tax return clients filed on time. This is up from 60% last year without the benefit of the extended deadlines granted in 2020
Of those that have filed, 57% are getting refunds averaging $14K. The other 43% owe an average of $20K.
The "average" client has W2 income of just under $90K, about $30k of investment income and $40K of other income (pension, business, rentals, etc.).
The effective federal tax rate for personal clients is 21%

Although improving, the IRS is still dealing with a large backlog of tax returns and correspondence they have to process. The latest estimate is still over 15M returns and correspondence from 2020 and earlier that have to be handled.
The IRS has been on a hiring frenzy - despite dealing with the same hiring challenges most business are struggling with, they have added several thousand employees to their staff
The IRS has shifted resources to focus more on working the backlog which is why it is improving. However, this comes at a cost as they have less resources focused on answering phone calls.
If you have had the "pleasure" of calling the IRS, it used to be they would answer 80% of the calls (and then you'd still have a long hold). Currently, they are only answering 25% of the calls so you don't even have the "opportunity" to hold for a long time..
As a result of the above, the current estimate from the IRS is that if you e-filed and are expecting a refund from 2021, it can range from 2-6 weeks but is averaging 21 days. For those few that still paper file, expect a refund in 6-9 months.
The link below is useful to see the status of your return. To use it, you need the primary filer social security number, the filing status and the amount of the refund.

Where my Refund?

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