January 27, 2024

Dear Taxpayer:

Gratitude is the state of being grateful, when you feel thankful for the good things in your life and have an acknowledgment of everything you receive from others. My gratitude for the amazing tax clients I have is truly immeasurable. The past two years have been full of challenges and delays and yet you have been patient and understanding to a fault. For that I am truly grateful beyond words.

On top of timing delays which required extensions to be filed for my tax clients, the State of North Carolina was hit by one disaster after another in 2024. These disasters also added to the processing time to complete tax returns. With North Carolina being declared a Federal Disaster Area, the IRS issued a postponement of time to file 2023 returns until May 1, 2025 and NC State did the same. This postponement did not apply to tax payments that might have been due by April 15, 2024. Tax liability is always payable by the original due date of the return each year.

Working with and reaching the IRS is still challenging, but there have been some updates to the IRS that are making contact with them just a wee bit easier. As of the end of 2024, there were little to no changes in tax law. However, with that said, we do have a new president and the tax community is looking and watching carefully to see how this change in administration will affect taxpayers.

I will remind you that each tax year brings its own set of questions based upon tax changes and potential changes that can and could affect your tax return. And even though there are few of those for this filing season, I still need for you to read carefully and sign the annual tax engagement letter and complete this year's annual tax organizer. Your answers help me to prepare the most accurate tax return based upon the information and documentation that you provide. Should you receive a letter or notice from the IRS or from a State Department of Revenue about the current tax year or a prior tax year, I ask that you please forward a full copy to me as quickly as possible so I can assist you as needed.

I will continue to scan and save all major documents you provide for your tax preparation. Not providing all your tax documents will only slow down processing and put you in personal liability with the IRS should there be questions or an audit. Bottom Line Accounting will only be responsible for documents and data provided and will not be responsible if you omit information.

As you prepare your tax documents, please remember that I need ALL pages of your tax documents, both front and back. Not supplying all pages slows down the preparation process. I will return all your documentation in your completed tax package. Should it be necessary to amend your tax return later because documentation was not provided at the time of preparation/e-filing, there will be a minimum amended tax return fee of $225. This fee could be higher if additional forms are required with the amending of the tax return. Please make sure you have all your tax documents before you ask to e-file your return.

Identity Theft and Scams. The IRS continues to warn taxpayers about tax scams. The IRS does not contact taxpayers by text message or by e-mail. If you receive such a message, it IS a SCAM and should be immediately deleted from your electronic device. Please remember that the IRS will never ask you to pay a tax liability with prepaid cards of any type. If there are issues with your tax returns and/or tax liability, the IRS will always contact you via letter correspondence first. Don't give crooks any information or fall for their tricks and scams. So, remember to either hang-up, hit the delete key, or shut the door on those scam artists!

Documents Typically Needed to Prepare a Tax Return. The following documents and information are good examples of what is generally needed to complete your tax return:

      1)  Copies of Social Security Card/Numbers for each taxpayer and/or dependent
          (if not already on file with BLA);
     2)  Copies of current and valid driver's license or State ID cards for the taxpayer and spouse
          (a tool to help combat fraud);
     3)  IRS IP PIN (a six-digit number assigned to eligible taxpayers related to fraud and identity theft),
          if applicable or requested by the taxpayer and/or spouse;
     4)  Form(s) W-2 (wages, etc.) Pay stubs do not always have complete, accurate, or final information.
          Therefore, the real thing is required and; additional, it is illegal to prepare your return from a pay
          stub per IRS regulations;
     5)  Copy of your last pay stub of the year;
     6)  Form(s) 1099 (interest, dividends, miscellaneous, non-employee compensation etc.);
     7)  Schedule(s) K-1 (income/loss from partnerships, S Corps, etc.);
     8)  If you purchased your health insurance coverage through The Marketplace, you MUST have
          Form 1095-A to accurately complete your tax return. If you received Forms 1095-B or
          Forms 1095-C, please include those in your tax documents although they are no longer
          mandatory;
     9)  Form(s) 1098 (mortgage interest) and property tax statements for both houses and vehicles;
   10)  Copies of closing statements regarding the sale, purchase, or refinancing of real property;
   11)  Brokerage statements from stock, bond or other investment transactions, to include,
          information regarding the original cost of stock and the date purchased for any stock
          sold during the year;
   12)  Legal paperwork for adoption, divorce, separation, and /or custody issues;
   13)  All other supporting documents (schedules, checkbooks, etc.) as necessary to document
          your tax information;
   14)  Any tax notices received from the IRS or other taxing authority;
   15)  A copy of your 2023 tax return only if it was not prepared in our office;

Free e-file. I am required to e-file your tax return and offer this service at no additional charge. There are many benefits to electronically filing: immediate acknowledgment that your return has been received, confirmation of acceptance/rejection, direct deposit in 10-20 days when refunds are due, and easy on-line payment options should you owe taxes.

Payment for Services. To keep costs and prices as low as possible, payment for services can be made with Cash, Personal Check, Mastercard, Visa, or Zelle payments at the time of service. Payment is due when you when your return is complete unless a payment arrangement has been requested and approved prior to tax preparation.

Call When You Need Help. Remember that I am available year-round and your tax preparation fee generally covers the additional time I spend helping you during the year. And getting those pesky notices to me as soon as you receive them can make addressing them much easier, faster, and less costly.

Engagement Letter/Tax Questionnaire. The engagement letter is an agreement which simply confirms the arrangements and responsibilities involved in preparing your tax return(s). All clients are required to sign and submit a 2024 Engagement Letter prior to any tax return preparation work beginning. The 2024 Tax Questionnaire is meant to assist you in gathering information necessary to prepare your return and to act as a "tax road map" for me as I begin to prepare your return.

Schedule Your Tax Preparation/Interview Appointment Early. I am now booking tax appointments and encourage you to make your appointment as soon as possible. You can also make an appointment to drop-off your tax return and I will either call or video conference with you when ready to discuss your return. There is also a secure drop box located at my front door that is available for drop-off use. Many clients may want to take advantage of the secure on-line portal which allows for uploading tax documents in a secure portal. If you are new to this option, be sure to call and I will send the needed invitation to that link.

Our policy is to process all tax returns in the order that they are received. Individual and business returns can take hours or days to complete. The return(s) ahead of yours may take longer than expected; however, know that I am always aware of your tax completion needs and work to meet filing deadlines for all clients. While I work quickly and efficiently, it is impossible for me to work around the clock. If it looks like all your documents are not going to be available, or I am not going to be able to complete your return by the due date, I will file an extension on your behalf (you give me this authority by signing your engagement letter). Extensions do not raise "flags" with the IRS, but incorrectly filed returns can. Please keep in mind that I am processing tax returns in-and-around my normal business and accounting work, which has its own separate deadlines.

There is NO EXTENTION FOR PAYING TAXES on/by April 15, 2025. Please remember that there is NO extension to pay taxes that are due each year. Tax returns and tax payments are two separate events. If you think you may owe taxes then you should make an estimated tax payment. And while I may assist you in determining the amount of estimated tax payment you should pay; I am not responsible if the estimate I recommend does not cover your tax liability. Paying a little more can be a safer bet than not paying enough and owing late penalties on top of taxes. This year, to be considered paid on time taxes must be paid by April 15, 2025. Filing an extension for your tax return does not extend the time you have to meet and pay your tax liability. When you pay after the due date, you will pay additional late payment penalties and interest. Bottom Line Accounting is not responsible for paying your taxes, penalties or interest, so please be sure to have enough withholding or make a tax payment before the due date of April 15, 2025.

Yes, I know this letter is packed with tons of information and is a long read, but I truly believe that this information is important and necessary as we work together for a smooth tax year for all tax clients. Please do not hesitate to contact me via phone or e-mail if you have any questions or need further assistance regarding your tax return or this year's tax organizer. Your tax situation and information will be handled with the same respect and carefulness that I would want my own to be handled.

When the bottom line counts, count on Bottom Line Accounting!

Nona D. Fisher                                         
Managing Partner
e-mail:  NonaFisher@aol.com 

Annual Tax Letter to Clients