December 2020 Profit Margins Newsletter

HT2 CLIENT UPDATE

A PERSONAL THANK YOU FROM HT2!

As one year ends, another begins! While 2020 has been a unique year filled with uncertainty, we want to thank you for being a part of this journey with us. It’s wonderful to have clients like you and we couldn’t be prouder to work with you!

As always, we’ll continue to collaborate with you on your financial goals, create customized financial planning and foster strong relationships. We look forward to seeing what 2021 will bring for your future success.

We wish you and your loved ones a wonderful holiday season and look forward to serving you in the new year.

Warmest wishes,

Hamilton Tharp, LLP

Coming Soon To HT2

Check out the tax planning guide below in the "News You Can Use" section
Tax Organizers will be going out the week of January 18th
Tax Caddy! A user friendly way to send us your tax documents and sign your e-file forms! See the last article and watch the video!

IRS TO EXPAND IDENTITY PROTECTION PIN OPT-IN PROGRAM

The IRS has announced that starting in January 2021, the Identity Protection (IP) PIN opt-in program will be expanded to all taxpayers who can properly verify their identities. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax returns. The fastest way to get an IP PIN is through the IRS's "Get An IP PIN" tool, available at www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin . The tool, which will be available in mid-January, uses Secure Access authentication, which verifies a person's identity through several different methods. Once received, an IP PIN is valid for one year. Each January, the taxpayer must obtain a newly generated IP PIN. The IRS plans to offer an opt-out feature to the IP PIN program in 2022 if taxpayers find it is not right for them. News Release IR 2020-267.

CDTFA OFFERS IMMEDIATE TAX RELIEF

TO SMALL BUSINESS OWNERS

Sacramento – California business owners needing financial assistance can receive immediate tax relief from the California Department of Tax and Fee Administration (CDTFA) in the form of automatic filing extensions, interest-free payment plans, or a hiring tax credit of up to $100,000 to offset income or sales and use taxes. “Small business owners need our help and support,” stated Director Nick Maduros. “The Governor's action provides immediate assistance for businesses impacted by COVID-19. We recognize that many of our taxpayers are facing extreme challenges due to the pandemic, and our hope is that these relief efforts will enable businesses to weather this difficult storm.” READ MORE HERE

WORK FROM HOME TAX IMPLICATIONS:

WHAT EMPLOYERS AND EMPLOYEES NEED TO KNOW

The pandemic created by the novel coronavirus has drastically changed the way we live and work. As more businesses are forced to send their employees home, work-from-home life has become a mainstay especially in knowledge-based jobs (jobs that do not require physical labor), and many of these industries are not going back to the workplace anytime soon. This can create wrinkles for both employers and employees when it comes to their tax situations. Here’s what employers and employees need to know about remote work and the impact it can have on taxes. READ MORE HERE

HAMILTON THARP, LLP AND HERITAGE FAMILY OFFICE UPDATE

Throughout 2020 we have continued to see our family office grow and provide incredible value for our clients by focusing on a proactive and dynamic plan to capture and accomplish all financial objectives. This approach utilizes a true multi-disciplinary firm that incorporates professionals from tax, law, wealth management, and insurance working together to help ensure that all of our clients planning is coordinated appropriately.

Examples of Planning Engagements in 2020

Estate Planning and Preservation
Pre/Post Marital Planning
Stock Options– Scenarios for both exercising and selling options
Liquidity Event Tax Strategies – Events in a clients life where an asset is sold (or desired to be sold) and there are significant tax consequences
Business Succession Planning
Wealth Management and Investment Review
Financial Planning – Based on the current scenario and with implementation of new recommendations

The initial planning consultation meetings are offered as a complimentary service to our clients as we truly believe that this helps serve in the most proactive manner.

COMING SOON TO HT2!!!

5 TIPS TO

SIMPLIFY TAX TIME

April 15 always seems to sneak up, and surely this year will be no different. While there’s no escaping the tax deadline, this year will be the easiest tax season ever. Use the following tips to streamline the tax return process and minimize stress.

Review and complete the tax organizer. The organizer provides you with your prior year information and helps your tax professional gather valuable information about you that may impact your tax return.
Provide electronic documents whenever possible. The electronic tax documents obtained directly from your banks and brokerages are high quality and easy to read, which minimizes errors.
Respond to communications from your tax professional as quickly as possible. Often our questions just require a short answer to finalize the preparation of your tax return.
Review your prepared tax return as soon as it’s available so that any necessary corrections can be made well before the April 15 filing deadline. If no corrections are needed, sign the e-file authorization to complete the process.
The four tips outlined above are suggestions we’ve made for years. They help streamline the process for you and your tax professional. With your help, we can focus on maximizing valuable tax deductions. The fifth tip is new this year, and it makes the first four tips a breeze.

Stay Tuned! E-mail Coming Soon to Sign Up for Your TaxCaddy Account

TaxCaddy makes it easier than ever to gather your 1040 tax documents and deliver them to us, communicate with us, answer your questionnaire electronically, and sign documents like the e-file authorization.

We’re excited about this powerful, free solution and we think you will be, too. Soon you’ll receive an email inviting you to create your TaxCaddy account. Once you receive the invitation there are three easy steps to get started. So, be on the lookout for the TaxCaddy invitation email. In the meantime, if you’d like to learn more about TaxCaddy visit the website below. Watch a video and Learn more at: https://taxcaddy.com/