Working with a Tax Pro?

Here are some etiquette tips to ensure your tax returns are accurate AND completed in a timely manner.

1. Do not send your documentation piecemeal.

2. Submit your documentation in the manner requested by your tax pro. If they give you options - pick ONE. Do not mail half and email the rest. Pick ONE.

3. If you are submitting your documentation electronically use a .pdf format. Don't have a scanner handy? Your phone likely already has this capability - if not, there are a bazillion apps to do this.

4. Scan both sides of any documents that are printed on both sides.

5. Respond to any requests for additional information or documentation thoroughly and at one time. 10 missing things? Gather them up and send them all at once.

6. Refrain from frequently checking in on your tax return prep status - only check-in if the indicated turnaround time has passed + a week for grace.

I am sure I have more but that's a good start.

#afittaxprep #taxes2022 #taxprofessional

Tax Preparation & Planning

Effective tax preparation and planning can help you to minimize your future tax liability. We can help you proactively manage both your personal and your business tax issues, including understanding how upcoming business opportunities impact your tax status and vice versa. Not all tax planning opportunities are readily apparent. By having us on your team, you are more likely to benefit from those opportunities. We understand how the latest federal, state, and local tax legislation and other developments affect you and your business and we are constantly identifying new ways to reduce federal, state, or local tax liabilities.

Enhance your tax experience

 Taxes don’t have to be daunting. We make the tax process easy and smooth. You can expect:

• A modern process from start to finish—Our advanced platform supports a completely digital process from tax document upload to signature and filing.
• Customized support—We put in the time to understand your personal tax situation to make sure you get the refund you deserve or minimize your tax burden as much as possible.
• Service all year—We are here to support you with tax advice throughout the year…not just at tax time. You can count on us for strategic advice that leads to smart tax decisions all year long.

Learn more here about our Blue Springs tax preparation services.

Income Tax Preparation

In order to avoid multiple delays in the preparation of your tax return, please gather the following information prior to your tax preparation appointment or to upload it to our client secure portal:

Personal Data
– Social Security Numbers (including spouse and children)
– Child care provider: Name, address, and tax I.D. or Social Security Number
– Alimony paid: Social Security Number

Employment & Income Data
– W-2 forms for this year
– Unemployment compensation: Forms 1099-G
– Miscellaneous income including rent: Forms 1099-MISC
– Partnership, S Corporation, & trust income: Schedules K-1
– Pensions and annuities: Forms 1099-R
– Social Security/RR1 benefits: Forms RRB-1099
– Alimony received – Jury duty pay
– Gambling and lottery winnings
– Prizes and awards
– Scholarships and fellowships
– State and local income tax refunds: Form 1099-G

Homeowner/Renter Data
– Residential address(es) for this year
– Mortgage interest: Form 1098
– Sale of your home or other real estate: Form 1099-S
– Second mortgage interest paid
– Real estate taxes paid
– Rent paid during tax year
– Moving expenses

Financial Assets
– Interest income statements: Form 1099-INT & 1099-OID
– Dividend income statements: Form 1099-DIV
– Proceeds from broker transactions: Form 1099-B
– Retirement plan distribution: Form 1099-R

Financial Liabilities
– Auto loans and leases (account numbers and car value) if vehicle used for business
– Student loan interest paid
– Early withdrawal penalties on CDs and other time deposits Automobiles
– Personal property tax information

Expenses
– Gifts to charity (qualified written statement from charity for any single donations of $250 or more)- Un-reimbursed expenses related to volunteer work
– UN-reimbursed expenses related to your job (travel expenses, uniforms, union dues, subscriptions)
– Investment expenses
– Job-hunting expenses
– Job-related education expenses
– Child care expenses
– Medical Savings Accounts
– Adoption expenses
– Alimony paid
– Tax return preparation expenses and fees

Self-employment Data
– Business income: Forms 1099- MISC and/or own records
– Partnership SE income: Schedules K-1
– Business-related expenses: Receipts, other documents & own records
– Farm-related expenses: Receipts, other documents & own records
– Employment taxes & other business taxes paid for current year: Payment records

Miscellaneous Tax Documents
– Federal, state & local estimated income tax paid for current year: Estimated tax vouchers,
– canceled checks & other payment records
– IRA, Keogh and other retirement plan contributions: If self-employed, identify as for self or employees
– Records to document medical expenses
– Records to document casualty or theft losses
– Records for any other expenditures that may be deductible
– Records for any other revenue or sales of property that may be taxable or reportable

How your business can push back against rising costs

Somebody hikes prices on your supplier and suddenly your supplier has no choice but to increase the price on you. Then you have no choice but to raise the price on your customer – who (even if they don’t tell you) notices ... you can depend on that.

Inflation is like that dung they say always rolls downhill -- except the 

 prices you pay go in the other direction. You don’t like charging your valued customers more... but what other choice do you have?

Maybe you can’t break this cycle yourself, but you can soften the blow.

And I have ideas for you today.

But before I get there, let's make SURE that your books are in order and that you are making wise year-end choices -- i.e. accelerating or decelerating revenue and costs (dependent upon your tax situation) and more.

If you want to get ahead of that stuff before it's too late, find us here: www.afitonline.com/appointments

And once you've done so, come right back here so we can talk about pushing against the inflationary tidal wave.

Mike Mead's
"Real World" Business Strategy Note
How Your Business Can Withstand Inflation
“It’s not what you pay a man but what he costs you that counts.” – Will Rogers

As you know if you’ve had to shell out for nearly anything lately, inflation is on the rise. Of course, broadly speaking, inflation is simply costs going up. And this can be driven by a number of dynamics, but one of the most common is supply and demand. Well, we still have enough demand to go around -- but in many areas, not enough supply…

And so we have inflation occurring – more than 6% year over year. The U.S. Bureau of Labor Statistics says that inflation accelerated last March through September worse than any time in 2020. And it’s the worst year-over-year inflation rate in 30 years.

Let’s hope inflation doesn’t go much higher. We can hope, can’t we?

Still, there’s no way this doesn’t sting small businesses like yours. According to a recent survey, more than four out of five small businesses have had to increase prices  – and a good chunk of their customer base is complaining even as profit margins shrink for almost half the companies responding.

Not good at all – and not getting better any time soon, at least as far as anybody can predict. So what can you do?

Your best (and quickest) moves

One common-sense response to inflation: Save money where you can.

Reduce inventory: What you sell is more than the lifeblood of your business – it’s probably also one of your biggest expenses. Yet think about it. Chances are good that a lot of your revenue comes from a relatively few number of items in your inventory.

Try classifying your inventory into three groups based on their value to your business. The “A” group includes your biggest moneymakers, the “B” group is somewhere in the middle, and “C” items make you the least.

Once you’ve figured this out, closely watch the supply chain, especially on your A items. If your suppliers are getting prone to longer or fluctuating lead times, stock up on their items when you can. And if you’re finding a lot of items in your “C” group, maybe consider ditching a few of them.

Improve your expense tracking: This not only helps you see where your money goes, but it also keeps you out of trouble with the IRS and makes sure you take every tax deduction you’ve got coming.

Check with us if you’d like specific opinions on expense-tracking software, but generally, the price of this software will depend on the size of your company.

Whatever you pick, scanning receipts is bound to be better than rooting through your shoebox – and it’ll make a big difference in your annual costs.

Fine-tune your marketing: It’s probably the worst move in the business book to give up trying to acquire new customers when times get tough – thinking like that just makes a tailspin spin out faster. Still, I bet your marketing has a lot of parts that could do with some tinkering. Too often in small businesses, marketing is launch-and-forget.

Make the time to take a hard look at your advertisements, for example. Which ones pull in the customers? Which ones don’t? Work on (or just drop) the clunkers. After all, you’re paying good money for those.

And remember: Keeping customers you already have is always cheaper than advertising to bring in new ones. Customer loyalty also becomes even more important during inflation.

Move to a cheaper workspace: The past couple of years have been a gut reno for the work world. For a lot of workers, the office is now their dining room table. Will this continue?

Who knows … but do you really need to keep shelling out for all those square feet of office space? Don’t forget the price tag of furniture, utilities, and those mountains of Keurig cups.

Cheaper alternatives can include co-working spaces, either for-hire or through a partnership with another local business. Ask around.

Inflation sure isn’t fun, but it won’t last forever (it never has). We’re in this with you and your business, and if we can help at all, please reach out. Stay safe.

www.afitonline.com/appointments

 

To a happy and prosperous year-end...

Mike Mead, EA, CTC
Alliance Financial & Income Tax
807 NW Vesper Street
Blue Springs, MO. 64015
P - 816-220-2001 x201
F - 816-220-2012

www.AFITonline.com
https://www.facebook.com/AFITonline

 

We have been attending a LOT of continuing education and getting ramped up for tax season 2022.   We are ready to start taking appointments.

You may schedule a time online at https://www.afitonline.com/appointments or you may call us at 816-220-2001 to reserve your time, appointments will fill up fast!  

We offer both in-person and virtual appointments.  

You will also have access to our secure portal to upload all supporting documentation.

Actual reasons people fall into (and stay in) debt

Today calls for a little bluntness… a bit risky, I know, but necessary.

And I’ll give a caveat here and say that what I’m talking about today has nothing to do with people in truly difficult financial circumstances… You know, balance-sheet-wrecking things completely out of your control. Things like unexpected medical emergencies not covered by insurance or a business situation that takes a detour for the worst… or a deadly tornado ripping through your hometown. (Our hearts go out to those who were affected this weekend - here are some ways you can help those areas hardest hit in Kentucky.)

But for anyone else, it’s time for an early intervention.

Things are expensive no matter what situation you’re in... single, married, parenting, divorced, retiring, etc. And with inflation ballooning right now, it’s certain we’re all feeling some strain on our finances. Some of you may even be working multiple jobs to stay afloat.

But, using any of these as reasons for why you’re struggling to keep money in the bank means there’s a bigger issue lurking behind the curtain.

If you’re up for it, I’d like to put on my “coach” hat today and inspire you to break some bad financial habits and reach for financial security (‘cause I think you owe it to yourself to chart a new path).

I want my clients to think properly about these things ... because when times of crisis do come - however intense or unexpected - it's much easier to work from a place of continued strength than from weakness.

Mike Mead's
"IRS Problems" Strategy Note
Why People Really Go Into Debt
"Knowing trees, I understand the meaning of patience. Knowing grass, I can appreciate persistence." - Hal Borland

We’ve seen all kinds of clients waltz through our doors asking for help to get out from under IRS debt. That’s what we do.

And let’s get this in the open right away: There’s no shame here. We understand that for every "bad financial habit" or trend, there are deeper issues at play. And our job is to help you deal with "what is" -- and not make you feel bad about "what should have been."

The purpose of this note is to wave some flags at you that will be truly helpful. Our goal is to serve our clients by offering help for these kinds of situations.

But perhaps there are a few habits pulling you down right now...

Not budgeting.
Yes, sticking to a budget (or starting one) can be scary, and learning about your true financial situation can be a downer. Frankly, get over it. PLEASE. At the very least get some help with it, find your net worth, add up all your debt, track your spending, and build a budget that reflects your true reality -- not the world you prefer to live in. Only when you face the facts -- by spending the time to manage your money -- will you stop losing ground.

Not paying off debt.
If you’re lacking a plan to conquer your debt, then you're going to do more than "lose ground" -- you'll go broke.

It's time to look at ways to increase your debt payments. Paying just the minimum balance is a sure-fire way to keep the debt around your neck like a noose forever, so dig into that debt by paying it off sooner.

Not saving.
Perhaps you used to be a saver -- and now you're resting on previous good habits. It may be time to INCREASE on that front, or at least return to what brought you upward in the first place. Saving even just a smidgen more of your income is a wise way to get started again. Take a good hard look at your spending patterns, your subscriptions and services, and find ways to cut back.

For example, downgrading your television package -- or canceling it completely -- adds up to money that could be put into high-interest savings or investment account. The idea is to be consistent and set up automatic deposits into a specific account set aside for emergencies and long-term plans. (Again.)

Not resisting the temptation to spend good money on junk.
The marketers for sure love it when you spend your hard-earned money on modern debris. You know... the stuff that's cluttering your house and bursting out of your front door. It's the disposable, upgradeable, and superfluous stuff you buy in a heartbeat because "You’re worth it!"

But it costs. It consumes your space, it can initially make you feel good but can lead to feelings of guilt, and can make you (eventually) broke. Please, learn to identify junk and end the spending spree -- because yes, you're worth it. <smile>

Not earning enough.
This is a toughie. If you've cut the junk, you've made a budget, and you're still inching down your savings, you need to fix the income side of the equation. I've known people with 3 jobs -- THREE JOBS -- to make ends meet. They work their tails off to earn enough money to cover the rent, buy better quality food, and pay off student debt. If need be, they didn't own a car, didn't wear fancy clothing, and didn't wine and dine on the weekends.

The answer here isn't easy -- you'll have to find a way to make more money. Even in a choppy economy, *if* you can swallow your pride, there's always a way. And, with the Great Reshuffle, there are plenty of jobs out there right now for the taking

Bonus, there are more ways than ever before to build something on the side. Leverage that social network of yours and take the entrepreneurial leap.

If any of these resonate with you, then good ... if not, then I do hope that you keep on maintaining the excellent habits that got you here in the first place.

I hope this little dose of "tough medicine" goes down smoother than anticipated. And also, I hope you’ll forgive me for my possible insensitivity. The reality is, I wouldn’t say this if I wasn’t in your corner. If you’re one of my clients doing quite well, huzzah. Keep at it. But sometimes it's important to admit when you're not.