We would like to thank you for choosing Bailey & Thompson for your tax and accounting solution and for your long-time support. As the New Year dawns, we are proud to introduce our new look. We have a refreshing new logo that is rooted in our proud 30 year history and reflects a dynamic future. While our logo may have changed, we have the same awesome team that is committed to providing you great quality service.
Tax filing season is here and once again Congress waited until very late in the year to pass tax legislation. On Friday December 18, 2015 the President signed the “Protecting Americans from Tax Hikes Act of 2015” with dozens of temporary and permanent extensions, alternate dates and new rules. All in all, this is very good news. Here is our brief summary of the items effecting individuals and small business.
Permanent Changes Effective retroactively to the beginning of 2015
Temporary Changes Extended through 12/31/2016
Temporary Changes Extended through 12/31/2019
Depreciation Changes Retroactive to 1/1/2015
We also want to bring to your attention some other special items that will continue to be a focus of the IRS.
Affordable Care Act - Taxpayers are required to have qualified health insurance in 2015 or face a potential penalty nearly 300% larger than 2014’s penalty in some cases. Proof of insurance is provided on the 1095 form series which is required to prove the insurance. We will be asking all clients to provide information about their health insurance and months of coverage in order to avoid future problems with the IRS. Please be prepared to provide copies of Form 1095-A, B, or C that you may receive.
Charity - ALL deductions of any amount must have a receipt, cancelled check, or credit card statement. Any individual contribution over $250 must also have an acknowledgement letter from the charity, and the letter must be dated by the date we file your return. The letter should show the date and amount of any individual contribution over $250 and should also state that no goods or services were received in return for the contribution.
Foreign Accounts - If you have read any news in the last year, you know that the IRS is looking closely for offshore accounts. If you have an account, retirement account, or business interest with a value over $10,000 in a foreign country, or a foreign business ownership (not through a mutual fund), please let us know as some special rules will apply to you. There are substantial penalties for failure to disclose these items.
Rental Property - If you own rental property, this year the IRS has demanded substantially more information. We now need, FOR EACH PROPERTY SEPARATELY, the physical location, the type of property (single-family, duplex, etc.), and Forms 1099-K received, and a record, by property, of the number of days rented and the number of days used for personal purposes.
TAX SEASON IMPORTANT REMINDERS:
We would like to remind you that when you gather all your tax information, you can drop it off any time during office hours or simply mail it to us. This can save you a lot of time especially in cases where there are not a lot of changes. If we have any questions we will contact you. If you need to discuss your tax information, please do not hesitate to contact us.
APRIL 10th - WE NEED YOUR PERSONAL TAX RETURN INFORMATION
In order to allow adequate time to prepare your tax return, we need your tax return information in our office before April 10th (in the case of corporations, March 1st). This is to make sure that your return is not hurried or rushed leading up to the deadline. For returns received on or after April 10th, an automatic six month extension will likely be necessary.
Please rest assured that we will utilize our best resources to once again provide you with timely, complete and accurate service while keeping your tax burden to the lowest legal amount. Thank you again for your continued support. We invite you to contact us at your earliest convenience if you need to set an appointment. Also, should you have any questions or need directions to our office, please do not hesitate to call us.
From your tax team,
Bailey & Thompson Tax & Accounting, PA