We are closing in on the finish to one of the more unique years any of us have encountered.
Due to the Covid-19 financial impact on governmental operations; they are experiencing decreasing cash in-flows and increasing out-flows. As a result, I have seen a rise in non-compliance penalties and interest assessments.
Timely and accurate tax compliance reporting and payments are essential to avoid penalties and interest in 2021.
Reaching out to connect on your 2020 tax reporting obligations.
Effective tax planning topics remain similar with one-time 2020 opportunities to consider around the following:
- Economic Impact Payments & Notice - 1444 (Turn this in with your tax documents)
- 2021 Tax Bracket Creep (2020 v 2021 Considerations, Revenues and Deductions)
- PPP and EIDL Loans
- Crypto Currency Transactions (New Question Must Be Answered)
- Gain / Loss Harvesting
- Retirement Contributions / Distributions
- Roth Conversion
- Charitable Giving Planning (New $300.00 Deduction for Everyone - Large Limit Increase - One Time)
- Estimated Tax Payments (Easy Penalty Target)
- Life Events (What changed materially in your life?)
- Idenity Security Protection PIN (Worth Considering)
These final few weeks of December is the best time to review your situation to identify and execute on tax saving strategies before December 31, 2020 comes and goes.