Are You Ready for Tax Season?

Fourth Quarter Estimated Payments Due January 18th

If you are required to make estimated payments for 2021, the fourth quarter payment is due on January 18th. Due to continued processing delays at the IRS, we recommend that federal payments be made online at https://www.irs.gov/payments  or via EFTPS.  Virginia payments can be paid online at https://www.tax.virginia.gov/individual-income-tax-payment-options.  If you choose to mail a check, we recommend you send it certified mail.

Tax Organizer Delivery

For individuals, we will be delivering 2021 Tax Organizers and Engagement Letters in mid-January.

Child Tax Credit and Economic Impact Payment Letters

Check your mailbox.  The Internal Revenue Service has announced that it will send out information letters to taxpayers that have received advanced Child Tax Credits (CTC) as well as third round Economic Impact Payments (EIP) (i.e. stimulus checks).

Both the CTC and the 3rd round EIP will be reconciling items on 2021 tax returns.  The CTC information will be reported on a Letter 6419, and the 3rd round EIP will be reported on a Letter 6475.  If you receive these letters in the mail, please keep them with your tax documentation for ease of providing to us for your 2021 tax preparation.

Last year, the first and second round EIPs were reconciled on 2020 tax returns, and discrepancies on those reconciliations caused months-long delays for IRS tax processing.  The IRS remains heavily backlogged with unprocessed and amended tax returns, so accurately reconciling the 2021 CTCs and EIPs will be an important step for smooth and efficient tax processing for 2021 income tax returns.

Information on your receipt of advanced CTC and EIP can also be obtained via your personal login on the IRS’s website at this link:
https://www.irs.gov/payments/your-online-account

Click on “Sign in to your Online Account,” and you will be directed to a log in page where you can login or set up a new account.