Taxpayers in financial distress should feel free to consult with me for advice on the tax and financial implications involved in navigating this challenging environment.
If you have tax deferred retirement funds and have been adversely impacted by the Covid 19 crisis, there is a new tax provision that allows for penalty free distributions from your account (up to $100,000) and the option to spread the taxable income (still taxable - penalty only is waived) over 3 years. I recommend that you consult with your tax professional before taking any distribution.
One of the biggest financial mistakes clients make is cashing in a large retirement account at the wrong time. Also consult with your financial advisor regarding concerns in this area.
Retirees age 70 1/2 or older can skip their RMD in 2020 without penalty. (RMD kicks in at 72 now).
Increased unemployment benefits are available to unemployed individuals including self-employed individuals who were not covered in the past by unemployment laws. Unemployment benefits remain taxable and advice should be obtained regarding the need for withholding.
Small business taxpayers should learn about new programs (Paycheck Protection Program) that may offer forgivable loans when used to keep employees on the payroll or to pay rent and other expenses. Check with your bank or credit union for more information. Visit sba.gov for more information also.
The virus will eventually be resolved and my office will return to it's former setup. Unfortunately, it doesn't look like this will be in 2021. I look forward to the reopening of the child's play area, coffee station, use of restrooms etc. But for 2021, looks like we'll have to go with the virus protocol.
I have no plans to retire, however, I have taken steps to reduce my workload during the tax season to ensure that I can maintain my health and sanity. Regrettably, this means reducing the number of clients served, eliminating payroll services, and taking on a limited number of new clients. Affected clients have been notified.
Todd's Tax Service LLC
Note: Due to the unprecedented Covid 19 pandemic, the IRS has furloughed many of it's employees. There is a huge backlog of unopened mail on IRS campuses. Reaching the IRS by phone or expecting a response to a written inquiry are both near impossible at this time. To minimize the chances of a future delay or problem, it is especially important to double check your tax return and make sure that all documents are reported properly and that other information on your returns is correct. Double and triple check your bank information. Verify that your address and other contact information are correct. File and pay on time. The delays in working issues with the IRS are likely to continue for some time.
For anyone who doesn't have envelope and postage to mail their information to our office, I can send a pre-addressed and stamped envelope to you for use in submitting your information. Simply call and ask!
Automatic extensions of the time to file are available for clients who choose not to file on time. Form 4868 is required if you wish to extend beyond the April 15th date. (Oct 15th is the extended due date).
The normal extension is not an extension of the time to pay any taxes due.
Let me know if you need your taxes completed immediately after dropping them off or uploading your information. Returns are normally completed in the order information is received. An additional fee of $79 (in addition to the regular tax preparation fee) applies to express service.
Property tax statements have started coming out for most counties. If you only file for a property tax refund, remember those returns aren't due until August 15th, 2021. You can drop off your income information through our drop slot and your return will be mailed to you.
Todd's Tax Service LLC
Is the office open for appointments? Yes, the office will be open during "tax season". Please fill out the "Pre check" page to start your returns or send me an email if your returns have already been completed and you would like an appointment. April 15, 2021 will be the last day that the office is open for in office appointments in 2021.
How do I submit my tax information to you? Stop by at the office and we will collect your information at the front desk, get a few preliminary pieces of info and answer any preliminary questions you may have. You may also use the drop slot next to our front door and drop your information off anytime. We have envelopes and pens available outside the door for your use. You may also mail us your information via US Mail. We also have a secure portal (Portal Link).
How will I sign my tax returns? Your completed returns will be mailed to you. All documents submitted will be returned. We will include a return pre-addressed stamped envelope for use in returning signature documents. You may also sign online as long as we have an e-consent form on file. You can also stop back and sign at the front desk when your returns are completed. Signing in your car is an option too, just ask.
Are you available to answer questions by phone? YES -Use the land line (320) 629-4745.
Do you have Corona Virus? No. (That's the whole idea).
Are you accepting new clients? No.
Mailing Address: 165 5th ST SE Pine City, MN 55063