TIME SENSITIVE - 2022 IMPORTANT YEAR END INFORMATION

Dear Client:

 

From all of us at Chandler & Knowles CPAs, we are truly grateful for your business and look forward to serving you in the upcoming year!

 

Please read this in its entirety, as important information is included for both Personal and Business tax returns.

 

If you have a business and/or rental property activity, or started such activity for 2022, the following includes time sensitive information as this year comes to a close:

 

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PARTNERSHIPS ONLY – NEW THIS YEAR – ACTION REQUIRED BY JANUARY 15, 2023

 

The IRS issued new schedules K-2 and K-3 to provide for more accuracy in international reporting, and indicated that even entities with no foreign activities would be required to complete these cumbersome filings. After receiving much backlash, the IRS provided a domestic filing exception which includes the following criteria:

 

“Partners must receive a notification, either electronically or by mail, no later than January 15, 2023, stating that the Partners will NOT receive Schedule K-3 from the partnership unless the partner requests it”.

 

Our firm will not be preparing schedules K-2 and K-3 for any partnership unless a partner requests Schedule K-3.

 

You must notify all Partners in your Partnership by January 15, 2023 that they will NOT receive Schedule K-3 from the Partnership unless they request it.

 

Forward any request for Schedule K-3 to our office as soon as you receive it.

 

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1099 Reporting

 

This reporting requirement applies to all business entities, rental properties and/or business activity reported on Schedule C of your personal return.

 

IRS requires Forms 1099 be sent to sub-contractors, Attorneys, or un-incorporated vendors to whom you paid $600 or more for services during the normal course of business. Forms 1099 are NOT required if such payments were for inventory, for personal purposes, or for any payments made via credit card.  The package of Form 1096 & Forms 1099 must be mailed to the Internal Revenue Service and postmarked no later than January 31, 2023. 

 

IMPORTANT:  If you need our help with this reporting, contact us as soon as possible. Our office must receive your information no later than January 06, 2023.  1099’s will not be completed by the deadline on data received after this date.

 

If our office handles your 1099 reporting, please ensure we have your current address, and current addresses for all of your vendors. There is an additional fee for re-processing 1099’s.

 

1099 Reporting Tip: Remember to capture checks written toward the end of December on your 1099’s.  If you’re simply relying on bank statements to tabulate your 1099’s, you may miss some payments since checks written at the end of the year may not have cleared on your December bank statement. If you’re submitting information to our office to process your 1099’s, please include a list of all checks written during December. There is an additional fee for re-processing 1099’s when incomplete or inaccurate information is submitted to our office for processing.

 

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Inventory

 

If your business maintains inventory, a physical inventory count (in dollars, at cost) is required as of 12/31/2022.  Forward the ending inventory figure to us.

 

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Business Personal Property Tax

 

The state of Texas requires that business-use assets on hand as of January 1, 2023 are reported to the county in which your business resides. This reporting is due to the county no later than April 15, 2023. If you need our help with this reporting, contact our office as soon as possible.

 

As you may know, inventory is also required to be reported on the Business Personal Property Tax Rendition. There is an exemption available if you have materials & supplies that are received from another state and within 175 days from the purchase date, the completed goods are then shipped out of state. Please contact us if you feel this may apply to you and have questions or need help.

 

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Payroll

 

If your business is planning on issuing Christmas or year-end bonuses, whether via check or cash, they must be included in payroll. If you need our help with this, contact Meagan Smith at 817-430-3000 ext 106 as soon as possible.

 

2022 Forms W-2 are due to your employees no later than January 31, 2023. The package of Form W3 & Forms W2 must be mailed to the Social Security Administration no later than January 31, 2023.  

 

If our office handles your payroll reporting, please ensure we have your current address, and current addresses for all of your employees. There is an additional fee for re-processing W2’s.

 

W-2 Reporting Tip:  Remember to capture checks written toward the end of December on your W-2’s.  If you’re simply relying on bank statements to tabulate your W-2’s, you may miss some payments since checks written at the end of the year may not have cleared on your December bank statement.  If you’re submitting information to our office to process your W-2’s, please include a list of all checks written during December.  There is an additional fee for re-processing W-2’s when incomplete or inaccurate information is submitted to our office for processing.

 

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Mileage

 

If you use personal vehicle(s) for business use, we will need all of the following on each vehicle when you submit your tax documents to us:  

1. Make & Model of Vehicle
2. TOTAL Miles driven in 2022
3. Business Miles driven in 2022
4. Commuting Miles driven in 2022 (if any)

It is very important that you retain a copy of your mileage log, as the IRS will require it in the event of an audit.

 

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Business Activity

 

If our office handles your businesses’ bookkeeping, we will be in touch regarding any additional information we may need.

 

If our office does not handle your businesses’ bookkeeping:

 

Upload your 2022 year-to-date Financial Statements to the portal.

 

If you need our help compiling your books and preparing your financial statements, and our office has not received any 2022 information from you, the chances of both your Business return and Personal return going on extension are extremely likely.  We realize that we all get busy, and life gets in the way.  However, please understand that we are approaching our busiest time of year and finding the bandwidth to process a years’ worth of data during this time is difficult.  Should you have extenuating circumstances, feel you cannot go on extension, and must have your return filed before the original deadline, there will be an expedite fee on your bookkeeping and tax preparation fees.  Please contact our office for the amount.

 

In order to avoid this situation in the future, forward your information to us on the agreed upon basis, which is either monthly or quarterly.  If you need a reminder of which time frame you chose, please contact our office.

 

If you handle your bookkeeping via QuickBooks desktop:

• You may need to upgrade QuickBooks. Intuit no longer supports versions 2020 or earlier, and our office follows their lead. If you are using QuickBooks version 2020 or earlier, you will need to upgrade QuickBooks before sending the Accountant’s Copy to our office.
• Make sure to include your normal QuickBooks password (the one you use each time you open QuickBooks) when sending the Accountant’s Copy to our office.

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The 2022 federal tax filing deadline for Partnership and S-Corporation tax returns is March 15, 2023.  If we have not received the information necessary to complete your tax return by February 10, 2023, we cannot ensure your return will be completed before the deadline.  Our office will automatically file an extension on your behalf.

 

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Did you form a new LLC, Corporation, Partnership, or Trust?

 

If you formed an entity in 2022 that our office is unaware of, there are additional filing requirements and the deadlines are rapidly approaching. Please contact your tax preparer as soon as possible to ensure filing deadlines are not missed.

 

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Business Questionnaire:  A completed Business Questionnaire is required for each business entity. We utilize the SmartVault portal to facilitate delivering the Questionnaire to you. You will receive a notification via email once it is available.  Stay tuned!

 

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Personal Tax Organizers: At a minimum, the completed Q&A and Due Diligence Questions sections of your personal tax organizer are required for each personal tax return. We will utilize the SmartVault portal to facilitate delivering the Personal Tax Organizer to you. You will receive a notification via email once it is available (normally around mid-January). Be on the lookout!

 

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The 2022 federal tax filing deadline for personal tax returns is April 18, 2023.  If we have not received the information necessary to complete your tax return by March 17, 2023, we cannot ensure your return will be completed before the deadline. 

 

Personal Tax Return Extensions:  If your personal return has not been filed by the April 18^th deadline, our office will automatically file an extension on your behalf.  It’s important to note that an extension gives you more time to file your tax return, but not more time to pay your tax. If you owe when your tax return is filed and payment wasn’t made with the extension by the April 18^th deadline, the IRS will assess late payment penalties. If you need our help with this calculation, contact your tax preparer.

 

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Has your address, email, or phone number changed?  If so, please let us know!

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Please Note:

 

As automated as almost everything seems to be in our world, not everything is filed electronically.  Some things require action on your part, so please make sure you open and read thoroughly all mail and emails from our office.  Instructions regarding any action you need to take will be included in our communications.

 

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Due to security issues, we cannot accept any attachments that end in .zip or .exe. via email.  Please upload these types of files to your Smart Vault portal.

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From your team at Chandler & Knowles CPAs, we hope you have a very Merry Christmas and a Happy New Year!

 

Rochelle Chandler, Founding Partner / CPA (ext. 101)

Kristina Knowles, Partner / CPA (ext. 105)

William Alsup, Senior Tax Preparer (ext. 111)

Elisa Mann, Tax Preparer / Bookkeeper (ext. 113)

Mae Bradley, Office Manager (ext. 298)

Meagan Smith, Director of Production (ext. 106)

Lindsey Welch, Executive Assistant for Practice Development (ext. 112)

Rickisha Brown, Project Manager (ext. 110)

Stacie Martinez, Bookkeeper (ext 103)

Michael Ducharme, Bookkeeper (ext 104)

Brenda Hoyt-Stenovich, Administrative Assistant (ext 100)

Camille Bradley, Advanced Planning Coordinator (ext 299)

 

 

 

Sincerely, 

The Chandler & Knowles Team 

817-430-3000

817-430-7206 (fax)

www.ChandlerKnowlesCPA.com

Sincerely, 

The Chandler & Knowles Team