Income Tax Preparation: How you can get your tax refund ASAP

The good news is that the IRS gave us an extra month to file our tax returns for 2020. It is May 17, 2021, and not April 15, 2021. ***

The bad news is that it may take a while to receive your tax refund.

It is frustrating, especially if you need the refund to catch up on bills you may have accumulated during the COVID crisis. Here are several ways you can get your tax refund quicker:

  1. E-File: Submit your tax returns electronically versus mailing your tax return in.
  2. Confirm that you have all your income documents before you file. You should have all of your 2020 income documents by now, but if you don’t, get them before you file. If you don’t have them and file your return, then you might have to amend your return(s). 
  3. Double-check your mailing address. This one is crucial! The IRS contacts you by mail for required updates on your tax return. Make sure your mailing address is correct so that you will receive all correspondence, (including a refund check), from the IRS. 
  4. Double-check your bank information on your return. If you choose direct deposit to speed up receiving your refund but fail to provide the correct bank account information, then you won’t receive your refund by direct deposit. 
  5. Check all your ID numbers. IRS has every citizen’s name and address on file. Each name has a unique ID number that is tied to the name, birthdate, income amount, and social security number. 
  6. Confirm that you are the only one claiming your dependent(s). If you know someone who could also claim your dependent on their tax return, then verify who will be claiming the dependent(s). If a dependent is claimed by more than one person, then the second tax return to claim them will be rejected by the IRS. 

Have a Certified Public Accountant file your tax returns for you. Tax laws are notoriously complicated and change year to year. So, save yourself the stress and fees by hiring a CPA to file your taxes for you. They can file them and represent you before the IRS. What’s not to like?!

As of this blog posting, there are still a few weeks left before the May 17, 2021 posting. Have you done all of the above?

A.K. Burton, PC, can do all your income tax preparation. We have experienced staff who can prepare and file your tax return and represent you before the IRS. Call us at (301) 365-1974 for a consultation. Our office is open. At this time we are not providing in-person services because of the pandemic. We serve the Bethesda, Rockville, and Montgomery County, MD area.

*** See the IRS website for updates on the new tax return due date for 2021.

Tax Season 2021: Get Your Tax Returns Done on Time!

The good news is that Congress moved the date your tax returns are due to May 17, 2021! ***

The bad news is that you are still sorting out your tax return documents and haven’t filed yet or even sent the documents to your accountant! 

2020 was a year. You may be wondering, are there any special documents and information that I need to provide to my accountant to prepare my taxes? Here are a few reminders of documents and information you need to gather for your accountant:

  1. Home office deduction: Did you change jobs during the pandemic? Are you now a self-employed or an independent contractor working from home? If so, while gathering your tax preparation documents, include your expenses for your business use of home as well as any improvements made to your home.
  2. Estimated Payments:. If your income did not include federal and state withholding, you may have scheduled monthly or quarterly estimated tax payments. When submitting documents to your accountant, make sure to include the jurisdiction, amount, and date the estimated payment was made.
  3. Interest Income: 2019 tax filers who had a refund on their tax returns may have also received interest income from the IRS. (Due to delaying Tax Day from April 15 to July 15 due to the COVID-19 pandemic.) Interest payments are taxable and interest must be reported on the 2020 federal income tax return. (Minimum $10.)
  4. Charitable donation deduction:. The CARES Act allows taxpayers who file using the standard deduction to claim a limited deduction for cash contributions to qualifying organizations. The deduction cannot exceed $300. (Donated property cannot be deducted.)
  5. Economic impact payment(s): Include the amount of economic impact payment (EIP) provided by the COVID-related tax relief act of 2020 in your tax preparation documents. 
  6. Paycheck Protection Program loans (PPPL): Make sure to let your accountant know if you received a first and if applicable second round PPPL.

2020 was an extraordinary, and confusing, year for American taxpayers. We recommend that individuals and business owners consult an accountant for their tax preparation so they get all they deserve for the year most of us want to forget.

A.K. Burton, PC, can do all your individual and business tax preparation. We have experienced accountants who can prepare and file your tax return and represent you before the IRS.   Call us at (301) 365-1974 for a consultation. Our office is open. At this time we are not providing in-person services because of the pandemic. We serve the Bethesda, Rockville, and Montgomery County, MD area.    

*** See the IRS website for updates on the new tax return due date for 2021.

Small Business Accounting Trends for 2021

Thinking about improving your small business? How about improving your small business accounting? Here are some accounting trends for small businesses to consider: 

  1. Data Analytics: Small business accountants can track data and perform an analysis. These insights into data help business owners make better financial decisions and improve resource efficiency. 
  2. Cloud-based Accounting: Businesses can access their bookkeeping records anytime and anywhere on the cloud. The cloud system saves business time and effort as they can track all their sales, inventory, and expenses in real-time. 
  3. Outsourcing small business accounting needs: Just because the technology is out there, does not mean you have to use it or feel comfortable with it. Many small businesses are outsourcing to accounting firms, either in their location or even in another state. This option lets the business focus more on its daily operations. A.K. Burton, PC specializes in tax preparation for small businesses and their owners. 
  4. Using Social Media: Social media channels are essential in building brand loyalty, promoting accounting services and products, engaging with the public and clients, and educating followers on accounting procedures and trends. Social media management also sends visitors to the website which increases traffic and recruits new customers. Facebook, LinkedIn, and Instagram have become an invaluable part of marketing for 2021. 
  5. Website Content Management: Blogs, both written and video, are ways to educate and sell to the public. This also increases traffic to the website and is considered quality content by the major search engines. Publishing monthly blogs should be a staple of any marketing strategy.

Hopefully, these trends have inspired you to reconsider your small business accounting. A.K. Burton, PC, has experienced accountants who can assist you with your small business accounting. We specialize in tax preparation for small businesses and their owners. Call us at (301) 365-1974 or email info@cpa-maryland.com. A.K. Burton, PC serves the Bethesda, Rockville, and Montgomery County areas.

Nine Reasons to Do Estate Planning in 2021

This year, we have experienced the unexpected. 

COVID-19 (Coronavirus) has ripped through the fabric of our nation, wreaking havoc on our lifestyle. Even with a vaccine just being released as we write this blog, there will still be a time of transition and readjustment. ***

This transitional period is the perfect time for you to re-examine your estate. In our busy lives today, it is easy to prioritize other items and let estate planning slip to the bottom of the list of things to do. The pandemic has provided a time-sensitive reason to prioritize estate planning back to the top of the to-do list. There is a lot outside of our control these days. One thing you can control is making sure that your loved ones are provided for with estate planning. 

Here are some tips on estate planning as we enter 2021: 

  1. Life and Disability Insurance: If you have insurance, be sure to update your beneficiaries. If you don’t have life insurance or disability insurance, then buy some this year. Your employer may provide it. If not, research local insurance agents and brokers to see the best policy for you. This is a crucial decision because when you die, you are leaving funds for your spouse and loved ones to pay funeral expenses and other bills. 
  2. Pet Care: Have someone designated to walk and feed your dog or cat. Provide a key and vet name. 
  3. Funeral and burial arrangements: Make your specific funeral service wishes known, including who you want the eulogy, speakers, music, pallbearers, etc. Also, have your burial plot chosen and purchased. 
  4. Retirement accounts: Your beneficiaries should be updated so your savings and investments go to the right person. 
  5. Bank accounts and investments: Your bank should provide a “Transfer on Death” beneficiary of your accounts. Following your death, whoever you have chosen will automatically receive the account. It is good for smaller accounts and assets. 
  6. Digital assets: Someone should be designated to handle your email accounts and any other online accounts such as social media and websites. Have your Financial Power of Attorney keep all your user names and passwords in a file. Keep them updated when you have changed any of the passwords or closed any account. 
  7. Have a “Family Convo”: Get together with all of your immediate family and discuss what happens if you get sick or die. Make arrangements for your spouse and children. Give them the names of your power of attorney and any documents they may need for future arrangements. 
  8. Health Care Directive: Make your final health care plans known to your loved ones. If you want a DNR (Do Not Resuscitate) write it down. That and any end-of-life care needs should be expressed clearly.
  9. Last Will and Testament: This may be last on the list but it should be first on yours. Create a will that spells out specifically any and all property and who should get it.  

One of the best gifts you can give your loved ones is security. You reduce intra-family fighting, lawyer expenses, and hard feelings by covering all estate issues before you die. Your family will be grateful to you forever.

At A.K. Burton, PC, our experienced estate planning advisors can help you through every step of the way. Call us at (301) 365-1974 for a consultation. Our office is open! We serve Bethesda, Rockville, and Montgomery County. MD area.

*** For more information on how COVID-19 has affected Americans’ finances, see this Forbes magazine article.

Five Tax-Planning Strategies to Try Before 12/31/2020

It’s November. What comes to mind when you hear November? Holidays and turkey time? At my work, we are thinking about something a little different…tax planning! The tax year 2020 is drawing to a close. That means there’s still a good month left for tax planning. If you own a business, you still have time to make some crucial, time-saving, and money-saving tax planning decisions. The tax year 2020 has held some significant challenges navigating the COVID-19 pandemic. Tax planning is important; especially if your business has been significantly impacted by the pandemic. Contact your tax preparer to discuss some tax planning strategies. Next thing you know, the first quarter 2021 will be happening and it will be time to put that planning to good use.

Take the time to meet with your CPA and go over your books. Here are some tax-planning ideas to get the ball rolling:

  1. Claim quick disaster loss refunds. Businesses can claim specific losses attributable to a disaster on a prior-year tax return. This is meant to provide quicker refunds. The Trump COVID-19 disaster declaration designated all 50 states, the District of Columbia, and five territories as disaster areas. Almost every U.S. business is in the covered disaster area thus making it eligible for refunds, depending on the losses. A business may claim a COVID-19 related disaster loss occurring in 2020 on a 2019 amended return for a quicker refund. It may affect losses coming from many different circumstances, such as loss of inventory or supplies or office, plant, or store closures. The loss must actually be attributable to or caused by COVID-19.
  2. Payroll tax deductions. The CARES Act lets employers defer paying their 6.2% share of Social Security taxes for the rest of 2020. Half of it is due by Dec. 31, 2021. The second half is due by Dec. 31, 2022. Payroll taxes cannot be deducted until their share is paid. Some taxpayers may pay the taxes as late as 8½ months into 2021 but still, claim a deduction for 2020.
  3. Use above-the-line charitable deduction. In the past, there was no tax benefit for giving to charity unless you itemized deductions. The CARES Act, however, created an above-the-line deduction of up to $300 for cash contributions from taxpayers who don’t itemize. In order to take advantage of this provision, donate by 12/31/2020. 
  4. Make up a tax shortfall with increased withholding. COVID-19 caused cash-flow issues for many businesses this year. Your withholding and estimated taxes should align with what you actually expect to pay while you correct the cash flow issue. If you are in danger of being penalized for underpaying taxes, make it up through increased withholding on your salary or bonuses.
  5. Use low-interest rates and generous exemptions. Interest rates this year are historically low. Plus, lifetime gift and estate tax exemptions can still be utilized. COVID-19 is depressing many asset values but you can still use estate-planning strategies. The present gift and estate tax exemptions are scheduled to expire in a few years. 
  6. Claim AMT refunds. The Tax Cuts and Jobs Act (TCJA) repealed the corporate alternative minimum tax (AMT). Now, corporations may claim all their unused AMT credits in the tax years beginning in 2018, 2019, 2020, and 2021. The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows corporations to claim credits in either 2018 or 2019. Companies have several options to file for quick refunds. They can file a tentative refund claim on Form 1139. It must be filed on 12/31/2020 to claim an AMT credit.

There are a number of tax planning strategies that may be in the best interest of your business. In order to customize your tax planning strategy, we need to meet with you, analyze the data, and discuss. The tax planning process takes some time, so don’t wait until the last minute. Contact us today and consult one of our experienced tax advisors. 

A.K. Burton, PC, can assist small business clients with their taxes. We are familiar with the CARES Act and TCJA and can advise our clients on being proactive in their tax planning by the end of the year. Call us at (301) 365-1974 for a consultation. Our office is open! We serve Bethesda, Rockville, and Montgomery County. MD area.

*** You can find more information about TCJA at the IRS website

Small Business Tax Preparation: The Five Biggest Mistakes People Make

We have finally reached the fourth quarter of 2020.

2020 has been a year like no other, especially for small businesses. Tax deadline changes, COVID restrictions, added tax laws…it’s hard to keep up with it all.

AK Burton, PC specializes in helping our small business clients keep up with their taxes. Is October the time to think about taxes? Yes. Now is the time to get in touch with your CPA if you have had an abnormal business year and plan how to close out 2020.

As you and your accountant begin the tax taking a look at your small business taxes, keep in mind these five biggest mistakes people make in small business tax preparation:

  1. Misclassifying employees and independent contractors: Misidentifying a person as a contractor and not as an employee will lead to penalties and interest for non-payment of the employer share of employment taxes. The business must give every employee a W-2, and every contractor that was paid more than $600 gets a Form 1099-Misc.  
  1. Failure to pay “reasonable wages” to shareholders of an S-Corporation: The IRS states that for the 1120S income tax return that “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to the corporation.” The shareholder plays an active, day-to-day role in the business, so, they are an employee and have to be paid a market-based salary for that position.
  1. Missing valid deductions or overstating business expenses: If your business expenses exceed its income, you may get the unwanted attention of the IRS. All of your business expenses need to be considered. IRS rules are quite strict on home office expenses as whatever is used for business should not be used for any other purposes than business. The IRS is “generous” when it comes to some Schedule C expenses. Be sure to use the depreciation schedule that the IRS has for deducting business equipment, business vehicles, and buildings. ***
  1. Improperly mixing business and personal expenses: This is one of the most common business tax filing mistakes of all. Many business clients co-mingle their personal and business banking accounts. “Co-mingling” your personal and business checking accounts makes it hard to distinguish which expenses are tax-deductible. Please keep personal income and expenses out of business bank accounts.
  1. Failure to plan: Tax laws can be complex. Most business owners are too busy running their company to understand all of the tax law nuances. A CPA or tax attorney is experienced in these matters and can help the business properly manage their accounting and business processes. Tax advice can help businesses take advantage of their resources and avoid unwanted consequences that may unknowingly occur due to the complexity of the tax laws. If you are about to incur an unusual financial transaction such as a large asset purchase or sale that is not an ordinary part of your business activity, contact your CPA to discuss the tax implications of the transaction. There may be unforeseen and unexpected tax consequences.  

At A.K. Burton, PC, our specialty is assisting small business clients with their taxes. We are familiar with the tax laws and can advise our clients on being proactive in their tax planning for now and the future. Call us at (301) 365-1974 for a consultation. Our office is open! We serve Bethesda, Rockville, and Montgomery County. MD area.

*** You can find the IRS Depreciation Form 4562 here.

How to Use QuickBooks Services for Your Small Business Accounting

In these days of COVID, (I’ll be so glad when I won’t have to use that term anymore!) it’s good practice for small business owners to do much of their accounting online using software designed specifically for them. It saves money, time, and protects them from exposure to others. 

QuickBooks *** is a popular and economical program for business owners and accountants. Its features, functionality, and ease of use are all strong reasons to use this program. 

If you are considering QuickBooks as a tool to manage your books, here are some ways you can use it:

  1. Invoice customers: QuickBooks lets you invoice your customers to decrease accounts receivable and increase cash flow.
  2. Manage bills and accounts payable: Keep updated on your bills to your vendors and suppliers by using the enter bills and pay bills function. Keeping your vendors and suppliers happy is important as well.  You don’t want to fall behind on your outstanding bills with vendors. You just enter the payment and due date. No longer do you have to write and print checks. QuickBooks online pay function is easy and efficient. Plus, it saves you money from having to buy checks.    
  3. Employee time management: Enter the employee time data on the home screen. It can be a one-time event or a weekly payroll period. QuickBooks measures employee productivity and job costing, if applicable.
  4. Payroll management: QuickBooks lets you process payroll directly or you can integrate a third party for it. You will record your outsourced payroll in QuickBooks. You can also import your payroll data from QuickBooks to the accounting firm. 
  5. Memorized transactions: You should use QuickBooks memorized transactions to automatically enter transactions that occur on a regular and predictable basis.  This can include invoices, bills, journal entries, and payments.  The idea is to boost efficiency and have certain items be entered automatically into QuickBooks.  One example of good use of a memorized transaction is a bill that you have set up to be automatically deducted from your checking account like the monthly internet payment.  By memorizing a check you can have the payment automatically post to your checking account a certain number of days in advance. 
  6. Online banking: Major banks are now integrated into the QuickBooks software. So, you can set up your business to do all its online banking through it. 
  7. Printed checks: If you do need to print checks, you can keep cash flow analysis updated. Then you can print from it. It is extremely efficient!
  8. Journal entries: You may need to correct bookkeeping issues and create year-end entries per with your CPA so it matches your tax return. These detailed entries may be necessary when you file your tax return. 
  9. Online payments: The QuickBooks Intuit Payment Network gives your customer a convenient way to pay your invoices online. 
  10. Financial reporting: QuickBooks allows you to run reports to help get a snapshot of where your small business is at the moment. Your bookkeeping will be enhanced by its financial reporting.

If you are not using QuickBooks services, you may want to consider it. For the reasons listed above it may benefit your business to look into purchasing and using a software such as QuickBooks.

At A.K. Burton, PC, we help our small business clients with their taxes. We are familiar with QuickBooks as it is one of the many software that we use to serve our clients. Call us at (301) 365-1974 for a consultation. Our office is open! We serve the Bethesda, Rockville, and Montgomery County. MD area.

*** For more about QuickBooks Small Business Services, click here.  

Ask Your Financial Advisor: Deductions for Charitable Donations During the Pandemic

Charities have been busier than ever since the COVID-19 pandemic hit back in March as millions of people lost their jobs and went on unemployment. Food banks, utilities help, rent and mortgage assistance, and other similar non-profits are dispensing everyday aid to needy citizens. 

You may have been led to donate to charities, both local and national, to help others who have fallen into serious financial straits. *** So, if you are able to give during this pandemic, there are some deductions for charitable organizations that you need to know during this time:

  1. Required Minimum Retirement Distributions Waived in 2020: For 2020, the IRS has waived mandatory distributions from retirement accounts such as IRAs. This waiver was allowed for IRA account holders to have time to recover what may have been lost during the year. You may be planning to donate retirement assets to charity, too. The minimum age for making a tax-free transfer from an IRA to a non-profit is still 70½. The $100,000 annual limit has not changed. There is still time to increase donations to charitable organizations and offsetting an IRA withdrawal with a deduction.
  2. Non-itemizers have a new $300 Charitable Deduction: Taxpayers who do not itemize deductions can now deduct up to $300 single filing or $600 for a married couple. The CARES Act was amended so that donors to charities could give a little more cash gifts which are above the standard deduction.
  3. 100% of Adjusted Gross Income Available in 2020 for Cash Gift Deductions: Charitable donors can 100% of their adjusted gross incomes for cash gifts that are made to public charities. This is for 2020 only as, historically, the largest share of income that a donor could deduct was 60%. It is a 40% increase. Just note that this is for 2020 only.
  4. Donations of appreciated securities or other property: These donations do not qualify for the new charitable contribution provisions in the CARES Act as they are not considered Qualified Charitable Contributions. The only exception is for food inventory for C Corporations.
  5. Carryover Contributions: Charitable contribution carryovers from previous years and not for the 2020 tax year are different. Now, the current year contributions are deducted first, then the carryover contributions are subject to the normal ordering rules.
  6. Philanthropic taxpayers with traditional IRA accounts: It may be more advantageous to do a 2020 ROTH IRA conversion. Qualified Charitable Contributions for 2020 may offset 100% of the income recognized on such conversions.

This year has been a difficult year for us all. We will persevere! These tax law changes benefit charitable organizations and donors. As always, before making a significant financial decision, we recommend that you discuss these changes with an experienced financial advisor. 

A.K. Burton, PC, has experienced financial advisors who can help you navigate through the numerous tax changes in 2020 due to the COVID pandemic. Call us at (301) 365-1974 for a consultation. Our office is open! We serve the Bethesda, Rockville, and Montgomery County. MD area. *** For more on the losses charities have sustained, click here.       

Business Tax: Planning During the Pandemic

As we write this blog, unfortunately, the whole CVOID-19 pandemic is still with us and maybe for a while, though we are hopeful it ends soon. 

Here at AK Burton PC, we are working with our clients to create tax plans tailored to their unique situation. Now, during the uncertainty that the pandemic has caused; it is important to answer the questions business clients have now and plan for their future. Here are a few examples of some business tax planning strategies: 

  1. Depreciate idle business equipment (idle asset): The pandemic has caused a lot of business equipment to become idle. The business owner needs to show that they plan to use them again as soon as the business returns to full operations. It is known as the “idle asset” rule. If the equipment is abandoned or disposed of then the rule is no longer in effect.
  2. Automatic changes in accounting method: A business owner can make accounting changes right up to the due date of the tax return. Such changes may include: changing the treatment of prepaid expenses, accrued compensation, advanced payments received, reviewing the class lives used for depreciation, and reviewing the application of the uniform capitalization rules on inventory.
  3. Transfer-pricing arrangements: Due to the pandemic, businesses have lost thousands or millions in sales. This has decreased cash flow. So, now customs declarations or adjustments must be revised. Thus, the transfer-pricing for goods may not be relevant due to the three-month (or longer) cessation of business due to the COVID-19 pandemic which did not provide U.S. multinational companies a way to shift tax burdens between jurisdictions. (As we always say, consult with your professional and licensed tax planning consultant.) 
  4. Review business receivables to see if there are any write-offs: A “bad debt deduction” is only allowed for debts that are worthless during the tax year that the deduction is taken. The true worthlessness of the debt and the fact that is was taken during the tax year must be determined.
  5. Inventory values: Lower-of-cost-or-market (LCM) inventory valuation may bring inventory write-downs before the inventory is sold. (See your accountant about regulations.) All inventory items must be considered separately so correct values can be determined. (A percentage write-down is allowed for accounting.) 
  6. Verify that there is adequate stock and debt basis for S Corps/Partnerships: Coronavirus Aid, Relief, and Economic Security (CARES) Act may result in increased deductions and taxes paid for potential refunds. Relief provisions come from a partnership or S corporation and the partner/shareholder must have an adequate tax basis for any deduction or loss that comes from the entity to benefit in the current year from these favorable provisions. if an additional basis needs to be created by making additional capital contributions or loans before the end of the year.

These are just a few examples that may apply to your 2020 business tax planning strategy. While COVID-19 has made tax planning even more challenging, you and your accountant can still work within the guidelines to maximize the benefit of tax planning for your business. 

A.K. Burton, PC, has experienced tax advisors who can help you with your 2020 COVID-19 business tax planning. Call us at (301) 365-1974 for a consultation. Our office is open! We serve the Bethesda, Rockville, and Montgomery County. MD area.        

*** For more information on the forms and other IRS documents, click here.

Tax Preparation Alert: Individual Taxes Are Due July 15, 2020

As you read this blog, the day is getting closer. Which day?

That day is July 15, 2020, and it is the extended filing deadline for all individual tax returns this year.

The federal government changed it to July 15 because, of course, the Coronavirus pandemic put millions out of work and set back deadlines. Now, States are reopening, and as people are returning to their job (if it is still available); it’s important not to forget this tax return filing date.

The later filing date has been a relief to many people who were laid off when the pandemic closings began. Millions were thrown out of work and have been unemployed or finding work where they can. This spring will be one for the books as it has stressed us all. Your individual Federal tax return is due July 15th. Check with your tax preparer for when your state tax return is due. Here, at A.K. Burton, PC we have been monitoring the everchanging Federal & State guidance striving to give our clients the best service possible during a period of such unprecedented legislative turbulence.  

While the three-month extension to file Federal individual taxes has given taxpayers 3 extra months to pay any tax due on the deadline, it has also given people a chance to procrastinate. Before we know it, July 15 will arrive and many taxpayers will not be ready. Let’s fix that. First, you need to send all of your tax documents to your tax preparer.

Don’t remember what documents to provide your tax preparer? Here are some tips on what to bring them:

1.    Wages and salary income (W2)

2.    State tax refunds and unemployment compensation  (1099-G)

3.    Dividend & Interest statements

4.    Stocks, bonds and other investments

5.    Rental income & Expenses

6.    Forms K-1 from Partnerships and S Corp

7. Forms 1099 (MISC) 

8. Schedule C- Business Income & expenses

9. Forms 1099-R for Pensions & IRAs

10.Property tax bills

11. Medical Expenses

12. Mortgage interest (form 1098)

13. Charitable donations

14. Moving expenses

15. Child care expenses

16. Tuition Paid (Form 1098-T)

17. Student Loan Interest Paid (Form 1098-E)   

Organize these documents. That will help your accountant or tax preparer get your tax returns completed more efficiently. Then, upload the documents to a secure link your tax preparer sent you or bring them to your accountants’ office ASAP as time is running out.

Late filings beyond July 15, 2020, may incur interest and penalties, so you may have to file an extension. Any tax you owe is due by the filing deadline. This is done by filing Form 4868. If you don’t have all your tax documents gathered, give your tax preparer all the documents you have and ask for an extension to be filed.

The main thing to remember if you have not filed your 2019 income tax returns is: See your tax preparer now! You don’t want to get any late fees or correspondence letters from the IRS.

A.K. Burton, PC, is open for business and we can prepare and file your taxes for you and your business. We are working extended hours to prepare our client’s returns.  Call us at (301) 365-1974 for a phone consultation. We serve the Bethesda, Rockville, and Montgomery County. MD area.        

*** For more information on the forms and other IRS documents, click here.