Preparation for the 2020 tax season

Last month, the tax professionals from Storen Financial met in preparation for the 2020 tax season. You may wonder, what are your tax preparers doing while you are busy gathering your tax documents? Over this three-day retreat, we focused on collaboration of processes, new tax law updates, forms and changes, along with common issues that directly affect our clients and their businesses.

2020 was not a typical year, due to the effects of Covid-19, the IRS release of the CARES Act, new tax regulation, PPP loans and stimulus checks, all which caused changes in the way businesses operate on a day to day basis.

Below you will learn how our team at Storen Financial continues to prepare for our clients as we move into tax season. Areas we focused on include:

  • Understanding how the stimulus impacts your tax return.
  • Updates in charitable contributions and how these are reported.
  • Business owners that want to file their own PPT returns can now go online with Indiana’s PPOP-IN portal and file the 102, 103 & 104 forms to a central location. The county assessors will receive the returns from the state website.
  • Taxpayers who file separately from their spouse but make contributions to a College Choice 529 account, will now be able to claim up to a $500 credit starting on the 2020 IT-40 or IT-40PNR return.
  • Indiana will not allow College Choice 529 to be used to pay for Student Loans. Indiana will penalize the taxpayer by making them pay back the Credit taken in earlier years and tax the earnings used towards Student Loans.
  • We will have every client sign a Power of Attorney form to allow the tax preparer to talk to the IRS on their behalf if issues arise. We don’t expect many issues but this is a proactive measure so we can quickly resolve any issues or letters that clients may have with the IRS.

We are ready and excited to service you for your personal and business tax preparation. Please know that we also have a full-service investment team to assist with your financial planning and retirement planning questions and needs. Our Business Services team is available to guide you in all aspects of your business. Thank you for allowing us to serve you.

 

Blog by Daniel Walters – Tax Professional

Learn more about Daniel and the rest of the Storen Financial team here.