Brawe & Company

December 2021 Newsletter

As we head into the final month of 2021, there is some information that I would like to make you aware of going forward.

The IRS website IRS.gov has a way for you to sign up to get information regarding your account and what they show at the IRS. Basic things that you can do once you create an account or log in are, get an account transcript of the balances for each tax year, get a wage and earning transcript to verify that the information you receive from your employer is what was turned into the IRS or reported, gambling earnings that are reported, interest income and interest paid for mortgages, pay your payment plan or yearly tax amount due and many other requests. It is a good idea if you are not sure you have received all of your tax documents by mail, login and get that transcript to verify that you are not missing anything. Bring this transcript with you when you bring in your tax documents, this helps us to be sure that you will not get a letter stating that you failed to report income and owe more tax.

This is a reminder; in January 2022 the IRS should be sending out a letter to all people who received the Advance Child Tax Credit payments that were to be sent monthly from July 15th to December 15th. These payments were sent to the parent or guardian who claimed a child under the age of 18 on the 2020 tax return. If you filed a joint return with a child, you may have received that payment as a split payment with the other joint filer on the return, and both filers should receive a letter from the IRS. YOU WILL NEED TO BRING THIS INFORMATION IN WITH YOU TO PREPARE YOUR RETURN. We have been informed that if you do not know the exact amount that you received, if you say you didn’t get it and you did, or if the amount is off, this could cause your return to be pulled from the automated system and be handled individually by hand. This could create an extended delay in the receipt of a refund you may be expecting, could be a 12+ month delay. If you have further questions regarding how this will be handled for parents who trade years or if you had a new baby, refer to the IRS.gov website and there is a whole section related to these issues. You/or spouse if filing a joint return, can login and get the amount that was paid to each. We also discussed this in the October 2021 Newsletter.

We will also need to know if you received the 3rd Economic Impact Payment/Stimulus payment that was $1400 per person that was claimed on the 2020 tax return. Again, if you are not sure if you received it, this is where the IRS.gov website is helpful in determining if you actually received it, and how much if it was not the full amount. You/or spouse if filing a joint return, can login and get the amount that was paid to each. Failure to report this amount correctly, just the same as the Advance Child Tax Payments, will result in your return being pulled out of the automated system and handled individually by hand. This could create an extended delay in the receipt of a refund you may be expecting, could be a 12+ month delay. If you received a letter from the IRS regarding the EIP/Stimulus payment, please bring that in with your other tax documents.

Over the past two years we have had a change in the tax return due dates due to Covid 19. We are anticipating and would ask that you expect that the due dates will go back to the normal dates. Corporate tax returns are due March 15th 2022, Individual tax returns are due April 15th 2022. These are also the deadlines to file an extension requesting a 6 month extension to file the tax return. This does not mean that you have a 6 month extension to pay, if you owe taxes. They expect you to send in a payment for what you estimate to be due by the tax deadline of April 15th due date, even if you have not filed your return. If you are unsure what to do, feel free to contact our office and we can look at your past history and determine the usual amount you are refunded or owe per year. Again, if you have an IRS.gov login you can pay this online.

Another reminder regarding the tax deadlines and filing an extension, in the past we made every effort to file an extension for our clients who filed the prior year as a courtesy. We will still attempt to file these however, we do request that you contact our office by phone, or by email and be sure that we have your business name or individual name on our extension list. If you do not call and it is missed, we are not responsible for any penalty or interest that you may incur. If you expect to get a refund and file after the deadline, it is still a good idea to file an extension even though you should not incur any penalties when there is a refund.

One of the last subjects I will touch base on, if your LLC needs to make a 2553 Election or request that you operate as an LLC but are taxed as an S Corporation. Many people who start a self-employed business choose to start an LLC or Limited Liability Company that gives the owner no personal liability for business liabilities. When you are self-employed or an LLC, you will automatically file a Schedule C and pay approximately 15% self-employment tax/social security tax. If you choose to file an LLC and be taxed as an S Corporation, there still is no personal liability for the business liabilities however, filing this way you do not pay that 15% right off the top of the full profit. The owners/shareholders will have compensation through a payroll. The taxes will be withheld just as if they were an employee, half the self-employment tax/social security tax is withheld through the withholdings and the business pays the other half. The good side of this is that the tax the company pays is a deduction; the payroll amount is also a deduction from the gross income or sales. There is a separate return filed and there is a separate fee for a corporate return. You can make the election to have your LLC file as an S Corp for the current year, only if you make this election prior to March 15th. In order to file your 2022 business as an S Corp you need to make that election by March 15th or you will have to wait until the following year for this to go into effect. There are many other benefits and disadvantages for both. If you would like to discuss what is best for your business, please contact our office and speak with one of our tax specialists.

Please feel free to like our Facebook at Brawe & Company or check out our website at atifinancial.biz We are also asking that you consider giving our office a review on google maps and let us know how we are doing. We strive to provide you with the highest standard of service, and look forward to assisting you in 2022.

Thank you and Happy Holidays
Keith, Lyn, Jennifer, Taylar, and Greg

December 2021 Newsletter

As we head into the final month of 2021, there is some information that I would like to make you aware of going forward.

The IRS website IRS.gov has a way for you to sign up to get information regarding your account and what they show at the IRS. Basic things that you can do once you create an account or log in are, get an account transcript of the balances for each tax year, get a wage and earning transcript to verify that the information you receive from your employer is what was turned into the IRS or reported, gambling earnings that are reported, interest income and interest paid for mortgages, pay your payment plan or yearly tax amount due and many other requests. It is a good idea if you are not sure you have received all of your tax documents by mail, login and get that transcript to verify that you are not missing anything. Bring this transcript with you when you bring in your tax documents, this helps us to be sure that you will not get a letter stating that you failed to report income and owe more tax.

This is a reminder; in January 2022 the IRS should be sending out a letter to all people who received the Advance Child Tax Credit payments that were to be sent monthly from July 15th to December 15th. These payments were sent to the parent or guardian who claimed a child under the age of 18 on the 2020 tax return. If you filed a joint return with a child, you may have received that payment as a split payment with the other joint filer on the return, and both filers should receive a letter from the IRS. YOU WILL NEED TO BRING THIS INFORMATION IN WITH YOU TO PREPARE YOUR RETURN. We have been informed that if you do not know the exact amount that you received, if you say you didn’t get it and you did, or if the amount is off, this could cause your return to be pulled from the automated system and be handled individually by hand. This could create an extended delay in the receipt of a refund you may be expecting, could be a 12+ month delay. If you have further questions regarding how this will be handled for parents who trade years or if you had a new baby, refer to the IRS.gov website and there is a whole section related to these issues. You/or spouse if filing a joint return, can login and get the amount that was paid to each. We also discussed this in the October 2021 Newsletter.

We will also need to know if you received the 3rd Economic Impact Payment/Stimulus payment that was $1400 per person that was claimed on the 2020 tax return. Again, if you are not sure if you received it, this is where the IRS.gov website is helpful in determining if you actually received it, and how much if it was not the full amount. You/or spouse if filing a joint return, can login and get the amount that was paid to each. Failure to report this amount correctly, just the same as the Advance Child Tax Payments, will result in your return being pulled out of the automated system and handled individually by hand. This could create an extended delay in the receipt of a refund you may be expecting, could be a 12+ month delay. If you received a letter from the IRS regarding the EIP/Stimulus payment, please bring that in with your other tax documents.

Over the past two years we have had a change in the tax return due dates due to Covid 19. We are anticipating and would ask that you expect that the due dates will go back to the normal dates. Corporate tax returns are due March 15th 2022, Individual tax returns are due April 15th 2022. These are also the deadlines to file an extension requesting a 6 month extension to file the tax return. This does not mean that you have a 6 month extension to pay, if you owe taxes. They expect you to send in a payment for what you estimate to be due by the tax deadline of April 15th due date, even if you have not filed your return. If you are unsure what to do, feel free to contact our office and we can look at your past history and determine the usual amount you are refunded or owe per year. Again, if you have an IRS.gov login you can pay this online.

Another reminder regarding the tax deadlines and filing an extension, in the past we made every effort to file an extension for our clients who filed the prior year as a courtesy. We will still attempt to file these however, we do request that you contact our office by phone, or by email and be sure that we have your business name or individual name on our extension list. If you do not call and it is missed, we are not responsible for any penalty or interest that you may incur. If you expect to get a refund and file after the deadline, it is still a good idea to file an extension even though you should not incur any penalties when there is a refund.

One of the last subjects I will touch base on, if your LLC needs to make a 2553 Election or request that you operate as an LLC but are taxed as an S Corporation. Many people who start a self-employed business choose to start an LLC or Limited Liability Company that gives the owner no personal liability for business liabilities. When you are self-employed or an LLC, you will automatically file a Schedule C and pay approximately 15% self-employment tax/social security tax. If you choose to file an LLC and be taxed as an S Corporation, there still is no personal liability for the business liabilities however, filing this way you do not pay that 15% right off the top of the full profit. The owners/shareholders will have compensation through a payroll. The taxes will be withheld just as if they were an employee, half the self-employment tax/social security tax is withheld through the withholdings and the business pays the other half. The good side of this is that the tax the company pays is a deduction; the payroll amount is also a deduction from the gross income or sales. There is a separate return filed and there is a separate fee for a corporate return. You can make the election to have your LLC file as an S Corp for the current year, only if you make this election prior to March 15th. In order to file your 2022 business as an S Corp you need to make that election by March 15th or you will have to wait until the following year for this to go into effect. There are many other benefits and disadvantages for both. If you would like to discuss what is best for your business, please contact our office and speak with one of our tax specialists.

Please feel free to like our Facebook at Brawe & Company or check out our website at atifinancial.biz We are also asking that you consider giving our office a review on google maps and let us know how we are doing. We strive to provide you with the highest standard of service, and look forward to assisting you in 2022.

Thank you and Happy Holidays
Keith, Lyn, Jennifer, Taylar, and Greg

Sparky left us some hot chocolate and reindeer food for us to enjoy over the holidays. He wanted us to have a nice break as we hope you and your family do as well! Rest well knowing that ATI Financial/Brawe and Company is here when you need us for all your financial needs. We look forward to seeing you in 2022. Merry Christmas from all of us at ATI Financial /Brawe and Company.

Hi everyone!!!

Sparky has really been having fun lately. We are pretty certain that Sparky made sure to set himself up for an early retirement plan and made some good investments choices early on.

If you are thinking you want to be like Sparky, out having some great times, come talk to our office about your options for investing. There are many different types, IRA, ROTH, Mutual Funds, and Annuities. Many different options for different lifestyles.

Until next time…Hi Ho Sparky

Happy Thursday from Sparky and Friends! Im jealous, Sparky and Rudolph are hanging out, enjoying some pool time, having some yummy beverages(NSFW Im sure)! What a wonderful day of just relaxing!

I know you all have been wondering where Sparky has been! Well he has gone on a little vacation!! Starting with a stop in Africa and a safari with friends! He has been sending pictures to keep us updated! I wonder what he will be doing tomorrow?! Stay tuned to find out!

Happy Hump day everyone!!
Look who is at it again, Sparky is out trying to catch some rays today. He was so excited he saw that the stock market was up, he decided to relax today. Stay tuned for more fun with Sparky the Christmas Elf....I am sure he will be up to his normal tricks soon.😍😊

Oh No!!!! Poor Sparky, he fell over the fire and the reindeer ran over him!! I sure hope he has insurance or was prepared for those unforeseen emergencies, he could have been killed. Luckily for him it was just a few bumps and bruises.
Sparky came to ATI Financial/Brawe & Company back in the summer and talked to us about preparing for those accidents we all hate to think of, big and small. Sparky set up a life insurance policy to be sure that Mrs. Sparky and the kids were taken care of, and then he set up a Will to be sure that his estate was handled how he planned, should that unfortunate day come.
Give our office a call if you have been thinking about the future and want to be sure your family is provided for. We will be glad to set up a Will or a Trust, that will make certain your wishes are carried out, and your loved ones are provided for in your absence. If you need life insurance or even to start investing for retirement, we can help you with that too.

Well as you can see Sparky is hard at work on this Monday. He even brought his laptop to see if he could help with some monthly accounting and payroll.

Let ATI Financial/Brawe and Company help your company with the payroll or monthly accounting. We will be glad to keep you updated on your profit and loss, and give you some other valuable tax advice as well. We will keep Sparky working on Santa’s naughty and nice list.

It’s that time of year! No not tax time, Christmas. Time for Sparky to come visit Brawe & Co and make sure we are all being good for Santa. You thought this was just for kids didn’t you, wrong again. Sparky is making sure we have a great day and reporting back to Santa.

We love to celebrate the holidays and want to remind you that we are here all year. Also a reminder that estimated taxes that are due on January 15, 2022 for the 4th quarter payment.

Thank you,
Brawe & Co staff and Sparky

Have you ever wondered how to get a Social Security Statement that shows a record of your earnings and estimate of your future benefits? You can access all this information online by creating an online account. The address is secure.ssa.gov

You can either create a new account or sign into an already existing account. There will be some requested information such as, your full name, date of birth, Social Security number, and you will need to have access to verify this with an activation code, either by email or text. This will then give you an idea of what you have shown as income over your lifetime and if you have met the guidelines to possibly apply and receive Social Security benefits at the appropriate time. Often someone will have a year with no income if they were off work, a stay at home parent, or even if you filed your tax return as an S Corp with no salary or withholding paid through the year.

Many people choose to be an S Corp or taxed as an S Corp, to save self-employment tax/social security tax that they may have to pay on income earned on a 1099 or self-employed income. However, per regulations with the IRS, you must take a payroll and withhold taxes if you are filing to be taxed as an S Corp. Failing to do so could leave you with little to no Social Security benefits when the time comes.
You can also find answers on the Social Security website regarding replacement cards, name or address changes. There is lots of helpful tips and information available.

We all get those scam calls. Don’t fall victim to someone calling stating that there is a problem with your Social Security number or account, or that they are suspending your Social Security number. This is a scam. Scammers may threaten arrest or other legal action, or may offer to increase benefits or resolve identity theft. Often they will demand payment via retail gift cards, wire transfers, pre-paid cards, internet currency or mailing cash. Social Security employees will never threaten you for information or promise a benefit change for personal information or money.

If you receive a questionable call, hang up, and report the call to the Office of the Inspector General at Social Security. Do not return unknown calls. Ask someone you trust for advice before making any large purchase or financial decisions. Don’t ever be embarrassed to report if you shared personal or financial information or suffered a financial loss.

Our office is here to assist you at ATI Financial-Brawe and Company. We want to keep you and your family safe and assist you with whatever financial needs you may have come up. We are not just here for tax preparation, we also offer accounting, payroll, estate preparation and investments.

On behalf of everyone here at ATI Financial-Brawe and Company, we would like to wish each of you a safe and Happy Thanksgiving holiday. As many of us will be traveling to visit family and friends, be aware of your surroundings and travel safely.

Happy Thanksgiving from Keith Brawe and Staff

October Newsletter

Happy Fall everyone.

As many of you have received the Advance Child Tax Credit Payments, I would like to make you aware of some issues that you could face when filing your 2021 taxes.

This does bring up some issues if the parent’s alternate years, or if the child is no longer residing with the parent who previously claimed them. If parents alternate years claiming their child on their tax return, the IRS will send the 2021 advance child tax payments to who claimed the child on the 2020 tax return or the 2019 tax return if the 2020 has not yet been processed, even though they will not claim them on their 2021 return.

When the parent who is not claiming the child for 2021 files their tax return, they may have to pay back the payments over the amount of the credit they are entitled to claim. Some taxpayers may be excused from repaying some or the entire excess amount if they qualify for repayment protection. If a taxpayer won’t be claiming the child tax credit on their 2021 return, they should unenroll from receiving monthly payments using the Child Tax Credit Update Portal.

According to the IRS, taxpayers will be able to receive the full amount of the child tax credit on their 2021 tax return even if the other parent is receiving the advance child tax credit payments. The other parent should unenroll and the IRS will proceed to collect that money back.

There will be a letter sent to taxpayers who received advance child tax credit payments with the total amount received in January according to the IRS. This will be similar to the Stimulus/EIP letter that they sent out. Taxpayers will need to bring this letter to their tax preparer in 2022 to help them with the correct calculation of the advance child tax credit. You will also need to know how much you received for the third stimulus/EIP3 payment when preparing 2021 tax returns.

We are not just here for you during tax time. Our office does offer many services including, investments, estate planning of Wills and Trusts, monthly accounting and payroll for businesses, and setting up businesses. Before you make any financial decisions, let our office offer you some expertise and discuss how to plan for your future.

We appreciate your business and look forward to assisting you in the future.

ATI Financial a division of Brawe & Company