LATE FILING OF 2018 TAX RETURNS LIKELY!
As a result of the new tax law passed by Congress in late 2017 affecting the 2018 tax filing year, the Internal Revenue Service (IRS) has been working on updating and revising the tax forms. Unfortunately, this has taken considerably more time than hoped. Many of the forms needed to prepare the 2018 tax returns are not yet completed. As a result, the tax software to process the returns has been delayed. The government shutdown will also affect the filing season. The shutdown will stall the creation/revision of the aforementioned forms. Depending on how long the shutdown lasts there could be significant delays in processing tax returns. Taxpayers will not be able to prepare their 2018 tax returns until these tax forms are finalized by the IRS and the tax software firms have been able to update their software.
In addition to the delay in the federal forms process, the states have not finalized their tax changes with regard to the new federal tax law. For instance, Virginia is a conforming state, meaning that it generally conforms to the federal tax law. However, the decision to conform is an annual process and must be passed by the Virginia legislature. In “normal” years the vote for conformity is not easy. In this year of change, it will most likely involve more time on the legislature’s part to determine how or if Virginia will conform to the federal law. The interesting tidbit here is that unlike many changes in the past, absent any changes to the VA tax law, the new tax law will result in a larger VA tax liability in most cases than in the past. Interestingly, this means more money in the VA tax coffers…. what will VA do? Do we smell a lower tax rate? We can dream – right?!
Bottom line – there is a high likelihood that the preparation of your 2018 tax returns will be delayed and may not be able to be filed on time. This will mean that we may need to extend your tax returns. We will do everything we can to avoid filing extensions; however, we want to give you a heads-up that an extension may be necessary.
If you have any question, please feel free to contact us at firstname.lastname@example.org or 703-591-5200.
A step-by-step guide to help you if your small business gets audited:
- Your small business will get a letter from the IRS or state tax department informing you that your records are being “examined.”
- Call your accountant and have them draw up a special “power of attorney” form to be filed with the IRS or state conducting the audit.
- Your accountant will work with the agent to determine the necessary documents to be provided.
- Gather all the requested documents for your business including W-2s, 1099s, invoices, bills, bank statements, and other records of your company income and expenses.
- Send the documents to your accountant who will compile a binder of all the information and provide a space for the auditor if needed.
- Your accountant will help to answer questions. If the auditor requests an “on-site” visit to your business, your accountant will schedule the meeting with you and come along to ensure that the auditor does not delve into areas outside the scope of the examination.
- The examination report will be sent to you and your accountant by the agent with any proposed changes to income or taxes, along with instructions on how to appeal. You will usually have at least 30 days to decide whether to accept the report’s finding or appeal.
- You survived your audit.
If you have any questions regarding any of the steps or about your small business audit, please contact us at email@example.com or 703-591-5200.
“I have had the pleasure of working with Burdette Smith & Bish over the last two years. The individualized attention I have received has been nothing short of exceptional. They have identified multiple tax-savings strategies our previous CPAs did not uncover. Also, the time and effort they put into my return gives me the peace of mind I need to focus on my business rather than my taxes. All of the plaudits and recognition they receive is certainly well-deserved. They truly are ‘not your average CPA Firm.’ “Partner, Web Retailer
“As a small business owner, taxes can be confusing and overwhelming. I am so glad I was referred to Burdette Smith & Bish, LLC. They have been lifesavers, answering all of my many questions in layman’s terms, treating me alike a person, and not just another client. They understand my struggles as a business owner and encourage me at every chance. I highly recommend BSB and I am grateful for their services.”Owner, Child Care Center
I came to BSB initially for corporate tax help. That was 10 years ago. I am using BSB more now than ever. As my company evolved, BSB was able to grow right along side of it. Tom Crutchfield at BSB, has been very knowledgable and great resource for Consequent Solutions for tax, accounting, and auditing related services.Government Contractor
As an owner of a rapidly growing small business, we needed an experienced bookkeeping & business advisory partner to keep up with all of the changes my organization was going through. We found that partner in Burdette, Smith & Bish. They are an integrated part of our team and an invaluable resource for us as we go through our growth phase.Michael Delpierre Conversion Pipeline