Once
again it is time to gather your income and deduction records in
preparation for filing your 2016 income tax returns.
If
your gross household income was less than $62,000, you qualify for
free e-filing of your tax return at:
If you choose to have our office
prepare and file your federal and state tax returns, you will need to
sign and return the engagement agreement on the reverse side of this
letter. All professionally prepared tax returns must be filed
electronically (“e-file”). IRS will begin accepting e-files on
January 23 this year. You should be able to collect your tax records
sooner this year because IRS has shortened the deadline for Form 1099
to January 31, and the deadline for Form K-1 to March 15.
As in past years, you must have
a contemporaneous written receipt for donations totaling over $250 to
a particular charity. I cannot prepare your tax return if you hold
any assets outside of the United States. Identity theft continues to
be a problem. Please do not send any documents by e-mail that
contain social security numbers or bank account numbers, unless they
are password protected.
IRS
requires mileage logs for vehicles with business use; standard
mileage rates for 2016 are:
Federal Iowa
Business: 54¢/mi. 54¢/mi.
Medical & moving: 19¢/mi. 19¢/mi.
Charitable 14¢/mi. 39¢/mi.
You
are required to send a Form 1099 to any individual, partnership or
LLC that you paid $600.00 or more for services, rent or interest paid
in the course of your trade or business. Payments to cooperatives,
banks and other corporate entities are excluded. Wages in excess of
$150 in any quarter require the filing of Forms W-2 and W-3 (for
household employees you may file Schedule H with your tax return
instead). If you would like us to prepare these forms, you will need
to provide us with the information before January 25, 2016.
If
you have questions on any of the above or other tax matters feel free
to call, e-mail, or stop in. When you have your records ready you
may let us know and we will set up an appointment that is convenient
for you. Evening or Saturday appointments can be arranged.
Best
Wishes for the New Year!
