Elena B. Faro
Tax & Business Services
648 Broadway Suite 1009
New York, NY 10012
(Please note we are now in a new office next door. Suite 1009.)
www.elenafaro.com
T.212-228-9579
F.212-228-9712
Greetings,
2020… good riddance! May we all stay healthy, hopeful and remain peaceful through 2021.
IRS will be opening its electronic filing season on Monday, January 27th.
That is the first possible filing date, but we can complete your return earlier if you have all the
data. For some of you, tax year 2020 will be a bit more complicated and full of changes.
We will have to deal with unemployment, PPP loans and residency changes. I am prepared.
Remember… IRS asks: “At any time during 2020, did you receive, sell, send, exchange
or otherwise acquire any financial interest in any virtual currency?” Unreported cryptocurrency
transactions are subject to penalty.
I am following this section with my usual list of tax time procedures, fee structure, etc.
Most of you are familiar, but it’s worth a review; and for new clients, it’s very useful information
that will help your tax return to be accurately & efficiently prepared.
COVID Procedures:
We want everyone to be safe. Therefore we are encouraging PHONE appointments whenever
possible. I am willing to do face-to-face where necessary, with masks. And please leave the
kiddos at home. Appointments are available Mondays through Thursdays and Saturdays.
Necessary in-office appointments can be made on Mondays, Wednesdays and Thursday.
We suggest uploading your documents to Link.Intuit.com, or you can mail in your documents
to the address below. Those who need to hand deliver and have their documents scanned
can do so upon special request.
Tax Time Procedures:
I use two online platforms to handle client information. When you call or email to request
an appointment you will receive an invitation to Link.Intuit.com, which I use to collect in
formation to prepare your return. (Please note: you will need to set up your own account and
create a password.) SmartVault is the other secure portal system to send you documents
and your copy of the tax return. You’ll receive an email invitation to that too! I will not email
sensitive documents, but you can safely download copies of whatever I have if we send you
the link. Please don’t email sensitive documents; it’s not secure. Your Link.Intuit.com contains
your Engagement Letter. This outlines our separate and mutual responsibilities in preparing
your tax return. It must be signed by both of us before work is
initiated. You can also opt in for audit coverage as described below.
I charge to handle tax correspondence. IRS doesn’t do many full blown audits, but they do
send out notices regarding tax returns. I offer Audit Coverage. This is not an insurance
against an audit. This is an additional service that will cover my fees for work/time should you
be audited or receive correspondence from IRS or a state taxing authority. It does not cover
any tax, interest or penalties you may be charged by the taxing authority. The coverage is for
returns filed for the current tax year and carries a fee of 15% of the tax return fee with a
minimum of $75. This can also be found in Intuit Link. NYS (and most other states) require
that I enter identification information each year into my software. I will need either a drivers
license or non drivers id. Please have one of these forms of id available at your phone
appointment. In anticipation of your appointment please review last year’s tax return and
organize your information in the same way. You can upload all supporting documents through
Link.Intuit.com. Please use the questionnaire to note any changes for 2020 (i.e. new address,
employment, marital status, home sale or purchase.) If you haven’t received the invitation
after requesting an appointment please call my office. This is a secure process and is worth
the extra effort in time saved and accuracy. If you are averse to uploading, you can arrange
to bring them prior to your phone appointment to be scanned and returned to you. If there
are account statements or other information you’ll need to refer to during your appointment,
please include these in your upload. Logging into your accounts to retrieve information
should be done prior to your phone appointment.
Efile Authorization Forms:
All electronic returns require signed efile authorization forms to file your return.
(One for IRS and one for state.) We will be using ESignature to simplify this process.
ESignature also allows you to pay my fee online.
Extensions:
If you know you’re going to be filing an extension, please let us know as soon as possible.
Remember, an extension means additional time to file your return, not additional time to
pay taxes due. Late payments may be subject to interest and penalties. Occasionally there are
circumstances where I must file an extension for you, but the earlier I have all your
information the earlier I will know if that is the case. In order to file an extension, I will need
either your drivers license or non drivers id information.
Fee Structure:
Fees are based on the forms required and the complexity of the return. The minimum fee for
a 1040 (long form) is $475. No return will be filed if it is not full-paid. Partial or full payment
may be required before work is commenced. A deposit will be required of all new clients.
Business tax returns (Forms 1120, 1120-S, 1065) use the same fee structure, with a minimum
fee of $600.
Foreign Accounts:
If you have any foreign accounts (including retirement, bank, brokerage) that have an
aggregate balance of $10,000 or more on any day during the tax year, we will need to file a
form to report it. Penalties for noncompliance are steep.
Important Deadlines:
February 1st: You will need to issue a 1099-MISC to any individual or LLC that you paid
$600 or more for professional services in 2020. Let us know if you need us to file those
for you. You'll need to provide us with name, SS, total amount paid and address of recipient
March 15th: LLCs must file IT-204-LL and pay any fee required by NYS.
March 15th: Corporate return (S-Corp and C-Corp) and Partnership return. You
must submit your information to me by February 15, 2020 or I may have to file an
extension for you.
April 15th: Personal tax returns are due. Please make sure all documents and information
required to file are received by my office in a timely fashion. Make an appointment and do
not wait til the last minute.
I look forward to hearing from you and wish you a peaceful year.
Warm regards,
Warm regards,
Elena B. Faro/pb