Varley
& Kearns Law Offices, PLC
Warren
A. Varley •
Karen
K. Varley •
Mitchell
P. Kearns
Attorneys-at-Law
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
