Hop to it!
Thursday, June 15th is our tax data deadline
for summer filing
Our team took a break in May to address non-tax related work and client issues, but we're hopping back into tax preparation mode this June and July.
If you didn't make the spring filing season deadlines, you have a chance to get filed over the summer, with The Business Guides' new "summer tax filing season." As we test out this mid-year deadline, we are waiving our extension processing fees for clients who successfully submit data by June 15th.
Complete tax data for your business and personal returns is due to us by the end of the day Thursday, June 15th. If it's in your SmartVault by midnight, or in our drop box when Kim opens the office at 9 a.m. Friday morning, it will be considered "on time" and we'll do our best to get your returns filed by July 21st. (This is not an IRS deadline, but an internal one, so that we can focus on mid-year tax planning before the "extension filing season" in the fall.)
And if June 15th seems too soon, our extension data deadlines are Aug. 15th or (if you only file a Personal return) Sept. 15th. Scroll to the end of this newsletter for our Tax Data Help Center and those due dates.
Staff took rolling time off after the April 18th IRS deadline to rest and recuperate. In no particular order:
- Kim visited her family in Upstate New York.
- Sarah went birding in Eastern Washington.
- Megan hiked Murhut Falls and many other trails in the Olympics.
- Lucianne relaxed at home and shopped the farmers markets.
- Shelly attended her Smith College reunion in Massachusetts.
- Christine threw knives in her backyard to let off some steam. (This is a legitimate sport, she says!)
We hope you have rejuvenating summer plans of your own. We always love to hear from you ~ hit reply and let us know.
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COMING SOON:
The Business Guides'
Fixed Price Renewals
& Proposals!
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Summer is here, so now's the time for many of you to renew your fixed price agreement for your bundled tax and advisory services with The Business Guides.
Those of you with July 1st renewal dates will be receiving emails from "Shelly at The Business Guides" by the end of this week. August 1st renewals will be sent out around July 15th. Once again we are using Quotient software to streamline the process.
If you value year-end tax planning and like the security of our IRS Correspondence Services & Audit Protection, you will save money bundling your services! If you're interested in receiving a customized proposal for your business, read on.
What is a fixed price agreement?
Our service agreements are based on a "tax year" that runs July 1 - June 30. Therefore, Tax Year 2023 includes the second half of 2023 (and year-end tax planning, so you can make adjustments before the calendar year is over), as well as the first half of 2024 (when we file most of our clients' 2023 tax returns). Of course, if your returns are filed later in 2024, they are still covered by your Tax Year 2023 agreement.
Service agreements include preparation of all your income tax returns, a tax planning review meeting, and IRS Correspondence Services & Audit Protection. Along with priority email support for your questions, you receive one hour of virtual meeting time with our team members, which may be divided into smaller meetings and used for whatever topics are top of mind. There are no extra fees for filing extensions, amending your return, amending owner W-2s, etc. We aim for this to be an all-inclusive price. (View the benefits in our comparison table.)
One more valuable perk of a fixed price agreement is priority scheduling & early access to the tax planning calendar. New this year, your tax planning meeting time will be reserved for you right after you renew!
Base prices for 2023
A fixed price gives you certainty in your budget. Choose to pay in full upfront for a 5% discount (credit cards accepted), or choose cash-flow friendly, automated monthly payments via ACH.
The base fixed price for Tax Year 2023 is $2,310 ($2,194.50 with the discount) for one corporation or partnership and one owner (or a married couple filing one tax return). The base monthly price is $192.50. Prices are increased for complexity of your returns or multiple businesses or owners.
Interested?
To request a proposal for your business, please directly email Shelly on our team or hit reply.
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Due to changes at our online payment processor, CPACharge, you may notice that charges on your bank or credit card statement come from AffiniPay LLC, the parent company. All else remains the same.
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Employee Retention Credit (ERC)
F.A.Q.
You might have heard...
"Your business may qualify for up to $26,000 per employee!!!"
Is it too good to be true?
Probably.
The ERC, or Employee Retention Credit, is a legitimate payroll tax credit meant to reward employers for continuing to pay employees during the pandemic even when their revenues dropped or they shut down.
Aggressive advertising, direct mail solicitations and online promotions around the ERC has prompted the IRS to warn of misleading claims and downright scams. Read their 5/25/23 bulletin for warning signs of "aggressive ERC marketing."
Here are our answers to frequently asked questions we've been hearing.
- My business didn't suffer much during the pandemic. Does it qualify?
The critical qualifying factor is whether your 2021 gross receipts were down by at least 20% in one or more quarters compared to 2019, since the credit is more generous in 2021 than 2020. And whether you had significant (non-owner) payroll for any of those quarters. The qualifying revenue drop for 2020 is 50%.
- Wait! Aren't owners' wages eligible for the ERC?
No. It only applies to employees who are not the owners or not related to the owners. Sorry, family businesses!
- My business received a PPP loan. How does that affect my eligibility?
Wages paid with PPP funds are not eligible for the ERC. They must be subtracted from total wages, with some tricky calculations.
- What happens if I claim the ERC erroneously or fraudulently?
Anyone who improperly claims the ERC must pay it back, likely with penalties and interest. The IRS has an extended audit window for the ERC and has promised a robust audit program for this credit.
- Since the pandemic is "over," when and how do I apply for the ERC? Is it too late.
It's not too late to apply. The ERC program ended after the third quarter of 2021, but you are able to amend your payroll forms (generally 941s) that have already been filed for eligible quarters and get the credit as a refund. For all quarters in 2020, the deadline to apply for the ERC is April 15, 2024, and for all quarters in 2021, the deadline is April 15, 2025. Learn more.
- Would I have to amend the tax returns of all the shareholders, too?
Yes, the business tax return and personal tax returns for shareholders or partners would need to be amended for the year(s) of the qualifying wages. While the ERC isn't considered taxable income, the credit amount reduces the payroll expenses for the year and needs to be included as an adjustment on the tax return. This affects the profit or loss on the K-1s, so all the shareholders' individual returns would need to be amended as well. Generally, the owners will owe more income tax for the year(s) in question. If you apply for the credit, check back with us to see if it makes sense for The Business Guides to amend the tax returns, since we already have the numbers in our tax software.
- I don't want to work with a scammy business! Who are you referring to?
Olympia Tax Service has assisted a few of The Business Guides' clients with claiming the ERC, with good reviews. We networked with their firm owner during the pandemic and understand their fee is $500 for an initial consult and 10% of the credit received (minimum $3,000 fee). You can book the initial consult on their website.
The Business Guides has already reached out to our clients who are obvious candidates for ERC dollars significant enough to make the process worth their while. If you feel your business may qualify, Olympia Tax Service's consult will answer that question before you invest and more time and energy.
We'll leave you with one more scary article by an auditing firm warning of ERC scams. If it sounds too good to be true, it probably is! |
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If you're just getting starting, start with our
2022 Individual Questionnaire
This year the annual Individual Questionnaire is an interactive online form!
We suggest you complete the Questionnaire FIRST. The questions will prompt you for the tax forms you need to collect.
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Point your phone's camera at this QR code to be taken to our Questionnaire, or CLICK HERE. |
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Tax Data Due Dates
If complete data for your S Corp, Partnership, and Personal returns is received between March 16, 2023, and June 15, 2023… then your returns will be filed by July 21, 2023. This is not an IRS deadline, but an internal deadline at The Business Guides, so we can focus on mid-year tax planning.
If complete data for your S Corp, Partnership, and Personal returns is received between June 16, 2023, and August 15, 2023…then we will file your returns by the Corporate IRS extension deadline of September 15, 2023.
Please note, there are no additional extensions available for S Corps and Partnerships after Sept. 15, 2023.
If complete data for your Personal return is received between June 16, 2023, and September 15, 2023…then we will file your return by the Personal IRS extension deadline of October 16, 2023.
Please note, there are no additional extensions available for Personal returns after Oct. 16, 2023.
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