Happy New Year! January 1st, to do...

Hi there & happy New Year, 2020!

Things to do, taxewise, for the new year...

I N D I V I D U A L S

* set up a tax "folder" to keep tax documents like 1099's, 1095, W-2, 1098, property taxes paid, K-1, etc etc. These should arrive in January, but may be as late as February 15th. Please bring all of these with you, to your tax interview.

* take a look at the tax organizer mailed to you 12-26-19 - your tax appointment may have been prescheduled, just to be pro-active (if none was scheduled, just ask for one! if you want to change your appt, no problem too!) and see the list on 2nd page - "a few items to start"...

* look at my prior 2019 tax planning blogs to make sure you did all of that too! Some tasks needed to be done before 1-1-20, but some are for 2020 too.

* pay 4th quarter IRS and Oregon estimates by 1-15-20, if needed. See last years' tax letter accompanying your copy of tax returns.

https://www.garlandtaylor.com/blog/year-end-tax-planning-2019

B U S I N E S S E S

* Look at my prior 2019 tax planning blogs for items to do (some tasks are duplicated below)

* take an "inventory" (as of Dec31) of any items for sale to customers (make a detailed worksheet, take pics, and reconcile/adjust Quickbooks records)

* close your books soon & reconcile all accounts (to bank statements, loan balances, credit card statements, any wages to form W-3, etc). No need to wait for statements to arrive in the mail, you can just go online to see these, print & reconcile them now.

* order IRS forms 1099/1096 soon, if you paid for services or any rent in 2019 (to any entity that is unincorporated. I'm an s corp, so no need to file one for me!). It may take a few weeks for forms to arrive! Those are due by 1-31-20 to the IRS and Oregon requires you to file those electronically by iWire. @ 

* make a note of "accounting practice" as of January 1st each year - to expense any purchases of $2500 or less (each) & record those in an expense account. Do not list these as assets on your Balance Sheet. If that practice is in effect (Jan1 each year), you can make a "de minimis" tax election & expense these items, rather than depreciate them over years.

* keep track of all 1099-MISC forms received, to match/confirm sales from customers. The IRS uses these to confirm your sales, so match them up! Be sure to report ALL sales, even if a customer did not issue you a form 1099.

* See the individual tax organizer mailed you (12/26) and letter/list of business tax items needed - mailed earlier, on December 9, 2019.

* prepare a detailed schedule of equipment purchased & used in your business as of 1-1-20 & file annual personal property tax report in your county assessor's office, before 3-15-20. @

* if you are an S corporation, C corporation, or multi-member LLC - schedule a time/day to meet with me & provide that tax information soon, in January or early February. See list of items needed, letter dated 12-9-19. Those tax returns are due March 15th & complete data (with no questions remaining) from you must be received by Feb 15th in order to file timely. same as in past years.

* if you are a larger business, operating in Oregon (commercial activity of $750k or more), be sure to register for the new Oregon Corporate Activity Tax (CAT) tax. Please see info here on your registration requirements, etc. @

* keep all accounting & tax records, orginals or electronic copies & safeguard them. I suggest most all records be kept for at least 7 years, but some should be kept permanently (investments, home, wills, etc). IRS link below says less, but keep these longer!

* review your 2019 records of time spent on business and/or rental activities and document to prove material participation & possible "trade or business" status.

* review your 2019 schedule & documents to support any business mileage driven (if s corp, c corp, or multi-member LLC - that mileage should have been reimbursed by 12-31-19 to deduct. If you reimburse after Jan1, a 2020 deduction might still be possible). 

Most of this was provided in my 2019 Year-End Tax Planning blogs (Oct/Nov)

Have a great New Year!  GARLAND

https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records

https://www.oregon.gov/DOR/programs/businesses/Pages/corporate-activity-tax.aspx

https://www.garlandtaylor.com/blog/year-end-tax-planning-2019

https://www.irs.gov/forms-pubs/forms-and-publications-by-us-mail

https://www.oregon.gov/DOR/programs/businesses/pages/iwire.aspx

https://multco.us/assessment-taxation/business-personal-property-information

"de minimis" election - https://www.irs.gov/pub/irs-drop/n-15-82.pdf

biz miles driven, pg13-26 - https://www.irs.gov/pub/irs-pdf/p463.pdf

@ note: this task is not part of my normal income tax services, fyi. just ask, if you have questions or if you need help... GAR