Nine Crucial Questions To Prepare Cleveland Taxpayers For Their 2020 Taxes

First some important reminders for all Cleveland taxpayers, then I have a bunch of questions to which I’d like you to respond…

Depending on when you read this, the October 15th tax return extension deadline (for families and individuals) is either VERY close, or just recently passed.

Therefore … a word on filing — even if you don’t want to:

Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe — and the IRS will figure it for you if you don’t), and an additional 5% for every month you wait to file.

PLUS there is an additional .5% late PAYMENT penalty on whatever it is you owe (assuming you also didn’t make the payments). NOTE: this is ON TOP of late filing penalties.

Then (yikes), interest accrues on both the late tax filing penalties AND the late payment penalties.

That’s a lot of penalty. And at least the first one is completely avoidable.

If you can’t pay the tax due on October 15, still file … and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe.

This might be especially painful for those who had a great 2019 (from an income standpoint) and didn’t pay their estimated taxes —  and then have had a rough 2020.

If this is you, we really can help: https://hinckleytaxservice.com/%E2%80%8B/schedule-a-call/

Don’t avoid the problems. It’s much easier to face them head on when you have someone in your corner (ahem).

And, of course, if you already have our help, we’re on the case.

This information above might be a great thing for you to share on your social media … many Cuyahoga County people don’t know these penalty realities. Please do feel free to send people our way, if you do.

www.facebook.com/HinckleyTaxService

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*deep breath*

Now … let’s talk about THIS YEAR (2020).

And no, I’m not referring to politics/lockdowns/insert-your-2020-is-a-donkey-reason-here.

Let’s talk about making sure that you are not surprised by your 2020 taxes.

We want to help you make a plan for your 2020 taxes that will set you up for long term success. In fact, there may be a few moves we can make that can help your tax hit NOW before we’re forced into “reaction mode” — which is the only mode out of which after-the-fact tax work can be done.

So, if at all possible I’d like to help get ahead of the game for you by having you answer a few short questions for me… Send me an email with your responses, using the email button at the top of this page.

1) Have you had a significant change in your wage income this year?
Put YOUR answer here in your email reply

2) Have you taken capital gains or losses this year? Are you planning to?
Put YOUR answer here in your email reply

3) Did you start or sell a business this year?
BONUS QUESTION: Do you know anyone who did, that would like input on their tax situation?
Put YOUR answer here in your email reply

4) Did you purchase real estate?
Put YOUR answer here in your email reply

5) Did you make your full contributions to retirement accounts?
Put YOUR answer here in your email reply

6) Have you considered a Roth IRA?
Put YOUR answer here in your email reply

7) Did you withdraw from retirement accounts, and for what purpose?
Put YOUR answer here in your email reply

**8) Have you sent your family and friends our way — and, if not, is there something which we can help you with, to make this easier?
Put YOUR answer here in your email reply

9) Are there any other tax or financial (or other) issues you think we should know about?
Put YOUR answer here in your email reply

Now — your answers to these questions form the “tip of the iceberg”, and they will help us to know which direction to take as we work with you over the next two months to prepare for year-end. With your permission, we’ll contact you back, as appropriate, and set up a time to discuss them further with you, whether by phone or other method.

I hope to see you in here soon.

Warmly,

Rich Rhodes

 

“CRISIS Action Plan” for my Cleveland tax clients — which is still relevant today:

1) Don’t marinate in other people’s panic. Be mindful of your social media consumption.

2) Continue to stay financially and logistically prepared for worsening situations.

3) Make sure you have some ready, liquid assets, if you are able. (I.e., cash in the bank, and in hand.)

4) Set aside plans for any big spending until the dust settles — but especially look out for your small business owner friends and vendors.