Varley & Kearns Law Offices, PLC
Warren A. Varley • Karen K. Varley • Mitchell P. Kearns
201 NE Second Street, P. O. Box 235, Stuart, Iowa 50250-0235
Phone: (515) 523-2456 [FAX 866-297-7985] E-mail: varleylaw@iabar.org
I hope your new year is off to a good start! As you look back on 2025 in preparation for filing your income tax returns, please continue to be alert to tax scams. If you need to send sensitive or personally identifiable information to us electronically, please notify us first and we will send you an encryption link via the Trustifi® security service that we use.
The One Big Beautiful Bill Act made substantial changes to the federal tax code, including (1) an increase in the amount of capital purchases that can be expensed under §179 to $2.5 million and (2) a deduction for qualified tips and qualified overtime; and (3) made §199A qualified business income deduction and 100% bonus depreciation permanent, retroactive to President Trump's second inauguration date. The act expanded expenses qualified for withdrawals from §529 plans (formerly college savings plans) to include post-secondary credentialing expenses and up to $20,000 of K-12 tuition and material expenses per year. The act also created Trump accounts for children under age 18: contributions up to $5,000 per donor will accumulate income tax-free. The federal government will contribute $1,000 to each account created for a child born between 1/1/2025 and 12/31/2028. There are numerous other provisions: if you would like us to research a particular provision, please let us know.
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”). If you want to file your own tax return for free, follow this link: IRS Free e-file
If you need worksheets or forms, please let us know. The IRS requires mileage logs for vehicles with business use. This is absolutely necessary for vehicles that are also available for personal use. See https://varleylaw.blogspot.com/ for mileage rates. The standard business rate for 2025 is 70¢ per mile.
If you have a trade or business, 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 in the course of said business. Be sure to collect Form W-9 from each of your contractors or you may be required to make backup withholding deductions from your payments. Payments to cooperatives, banks and corporate entities are excluded. Wages in excess of $150 in any quarter require the filing of Forms W-2 and W 3. Although we have paper 1099 and W-2/W-3 forms available; be aware that IRS/SSA require electronic filing if the total number of 1099 and W-2 forms is more than 10. If you would like us to prepare these forms, you will need to provide us with the information before January 23, 2026.
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. If you want to e-mail us information securely, send us an e-mail and we will open a Trustifi® portal for encrypted transmissions.
We charge a service fee for accepting payment of our tax preparation fees by credit card. If you choose to pay with a credit card, you may receive an email from the service Square, which processes the payment.
Privacy Policy
Your privacy is important to us. Please read the following privacy policy.
We collect nonpublic personal information about you from various sources, including:
* Interviews regarding your tax situation
* Applications, worksheets, or other documents that supply such information as your name, address, date of birth, phone number, Social Security Number, income, dependents' information, and other tax-related data
* Tax-related documents you provide that are required for processing tax returns, such as Forms W-2, 1099B, 1099R, 1099INT, 1099DIV, 1099MISC, 1099NEC, 1099S, 1098, 1098E, 1098T, 1099SSA, 1099RBR, 5498, ...
We do not disclose any nonpublic personal information about our clients or former clients to anyone, except as requested by our clients or as required by law.
We restrict access to personal information concerning you, except to our employees who need such information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your personal information.
Engagement Agreement
This agreement is designed to set forth the terms of this office’s engagement to perform income tax return services with respect to your federal and Iowa income tax filing requirements. When signed by you, this agreement is a contract. Further, even if it is not signed, unless we otherwise agree in writing, any work this office does for you will have to be subject to the terms set forth in this agreement. The scope of this engagement is the preparation and filing of the appropriate forms and schedules, based on the information you provide to us, for compliance with your 2025 federal and Iowa income tax filing requirements. The charge for preparing and filing these returns will be based upon a fee per form or schedule plus a surcharge for additional time if completion of a form or schedule requires more time than normal. Discounts may be applied in the sole discretion of this office. We will not file any form without your express and specific authorization to file a form. This includes an application for an extension of time to file. We cannot guarantee any particular result, including the amount of a refund or balance due on a return filed by this office. Representation in any dispute with the Internal Revenue Service or the Iowa Department of Revenue or any other taxing authority is not included in this agreement. This contract may be terminated by either Attorney or Client at any time, without penalty.
The undersigned each certify that they are not a foreign person or entity.
If this office may contact you and exchange information with you by e-mail, please check this box: □ and supply your e-mail address:
If this office may rely on your telephone instructions regarding filing, please check this box: □ and supply your preferred telephone number & the best hours to reach you:
Print Name: Date: 2026 Sign:
Print Name: Date: 2026 Sign:
Pursuant to U.S. Treasury Regulations, you are advised that any federal tax advice included in this communication is not intended or written to be used, and cannot be used, to avoid any U.S. federal tax penalties, or to promote, market, or recommend to another party any transaction or matter.
© 2026
