The South Bay Tax Report
December 2015
It's December here at
Wayland & Vukadinovich LLP
(actually, we suppose it's December where you are as well), but we're excited.
It's the holidays, of course, and we wish you a wonderful holiday season.
We're also tax planning, taking some great classes, seeing shipments of fascinating tax handbooks
(if you ever have trouble falling asleep, consider reading a 2015 Federal Tax Handbook), and most importantly, preparing our staff and our office for the 2015 tax return filing season.
We're ready!
We've laid in this year's paper order.
We've got new technology.
We'll have more monitors on our desk than the deck of the Starship Enterprise!
Most importantly for accountants -
we've made another change on our office coffee.
Mike and Gary ordered one of those single cup systems as a holiday gift for our hard-working staff. We can get lattes, hot chocolate, just about anything that a sleep-deprived tax return preparer needs to continue to finish your return with THE lowest tax possible.
We're ready.
Are you?
This, of course, if the final
South Bay Tax Report
for 2015.
We sincerely appreciate that you actually READ the South Bay Tax Report, but if you're exhausted with our detailed analysis of tax rules and discussions of our office appliances, simply scroll to the bottom of this newsletter and - safely - unsubscribe.
Have a wonderful holiday season!
As always, we've outlined questions that you frequently ask
(or that we THINK you frequently ask).
This may seem like a dumb question but when are personal tax returns due this year?
Actually, ANY question that we pose in the South Bay Tax Report is likely a dumb question, it's just who we are, but this question is particularly incisive as this year tax returns ARE NOT due on April 15th.
Pull up a chair and stay with us as we explain why.
In 2016, Emancipation Day, April 16th, an official public holiday in the District of Columbia (who knew??) falls on Saturday.
The holiday will be celebrated on Friday, April 15th so be sure you're ready for that huge Emancipation Day Celebration!
When the deadline for performing any act under the Internal Revenue Code falls on a Saturday, Sunday or legal holiday, the deadline is extended to the next day that is not a Saturday, Sunday, or legal holiday;
yes, the IRS actually writes like this;
anyway, since Emancipation Days falls on a weekend and it is celebrated on Friday, that makes Monday, April 18th the due date for 2015 tax returns.
Aren't you sorry you asked?
In twenty words or less, can you give me some tips about what I might do before December 31st to save thousands and thousands of dollars of taxes?
Remember, the last time the US Government used twenty words or less is when they shouted
"Ready, Aim, Fire"
during the Revolutionary war.
It's hard to tell you EXACTLY what you should do unless we know all of the specifics but that won't stop us from listing a large number of generic suggestions below.
Hang on, here we go....
Consider pre-paying your April 2016 property taxes.
Consider paying what you think you owe the CA Franchise Tax Board at December 31 2015 so you can deduct it on your Federal tax return.
Consider making additional charitable contributions.
Can you get that wonderful solar energy system up and running by December 31st - there are large credits to be had it you can.
Consider buying new technology, office supplies, dues, subscriptions or classes if they are used for business purposes.
Have you made a 529 College Savings Plan contribution? There is no Federal deduction but some states allow deductions for your 529 contribution.
(Yes, you guessed it - CA DOES NOT allow 529 deductions, we're lucky they allow ANY deductions).
If you believe your medical expenses exceeded 10% of your adjusted gross income this year, then make sure you pay any medical expense you have open before December 31.
Have you considered a SEP-IRA?
Have you made your IRA or Roth contribution?
Are you maximizing your 401K contribution at work?
If you have a business, have you considered placing your children on payroll, paying them for all of that work we both know they do for you?
I can NEVER reach the Internal Revenue Service or Franchise Tax Board by phone?
Is there some other way that I can view correspondence, view my account balance and verify my estimated tax payments?
We're convinced the IRS and FTB have phone numbers for show - they don't really answer them, and the IRS is still scrambling to join the 21st century when it comes to email, internet options and customer service, but our dear friends at the California Franchise Tax Board are proudly rolling out their new online tool,
"My FTB."
on January 4, 2016.
The FTB has been working on this since Al Gore invented the Internet and we're all hoping that the roll-out goes smoothly.
First, you will need to go to
ftb.ca.gov, locate MyFTB and select Register. You'll be asked to create your own user name and password and enter certain information.
After the security issues are surmounted, you will be able to view your account balance, view the estimated tax payments they have posted to your account, check your refund status, view withholding submitted by your employers, send secure messages, chat about confidential matters,
(yes, that's EXACTLY what they say, and Mike and Gary are eagerly looking forward to what confidential matters they will be chatting about), and view account alerts.
After January 4th, give it a try, but make sure your kids aren't around the computer when you start chatting about those confidential matters.
I had a good year this year.
I need to send the IRS a check for $100 million.
Where do I send the check?
Whoa, hold on there Warren Buffett!
In IRS Announcement 2015-23, the IRS notified taxpayers and their representatives that, beginning on January 1, 2016, it will not accept ANY check for more than $99,999,999.
Yes, the IRS cannot handle your $100 million check.
Perhaps you need to send them two checks for
$50 million each?
By the way, the IRS indicated that they deposited 14 checks of over $100 million last year.
Can I FINALLY make my tax-season appointment?
Well, yes, we open our appointment books for tax season on December 15th.
Call the office, talk to Madison or Gina,
or email Gina at gina@wvcpas.com
or Madison at madison@wvcpas.com
to schedule your appointment.
Generally, we have appointments starting at 9am and ending at 4:30 Monday thru Thursday and until 2:30 on Friday.
We tend to slump at our desk and vibrate on Saturdays and Sundays during tax season so don't even ask -
we don't have weekend appointments,
and Gary and Mike are at that age when they like those early-bird discounts at local restaurants so we don't have evening appointments but we're sure you can find something that works.
Call us BUT remember that NOT EVERYONE needs an appointment.
There are a myriad (love that word...) of ways to provide us with your tax information that does not require wandering down to Hermosa Beach late on a Friday afternoon.
We have long-form organizers, short-form organizers, electronic organizers, or you can ship us your -
well organized and complete -
tax information via our secure portal we can establish for you.
Remember, we don't like shoe-boxes,
electronic or real,
and note that our software supplier is still not convinced that Apple will survive so we don't yet have Mac-compatible electronic organizers - sorry.
Lastly, we ALWAYS appreciate information sent electronically but we - cheerfully - ask that you not provide us with ZIP files, cell phone photos and Dropbox, Box or other cloud storage information.
We will gladly provide you with a Smart Vault link
Smart Vault is our preferred cloud-based storage system.
Let us know.
We don't need to see every charitable receipt since you first bought Girls Scout cookies in 1964.
Organize and summarize!
For organizers, contact Gina at
gina@wvcpas.com
Contact Us