Maeda Palius
on
February 13, 2021

Do Estimated Tax Payments Increase the Chance of Receiving a Tax Notice?

To Our Valued Clients and Friends,

In recent years we have noticed an uptick in IRS and FTB notices. The #1 cause of these notices are incorrect estimated tax payment amounts being reported on individual taxpayer returns.

WHAT IS YOUR RESPONSIBILITY?
Please be advised, we rely solely on your representations for estimated tax payments reported on your individual tax returns.

CAN MY TAX PROFESSIONAL LOOK UP ESTIMATED TAX PAYMENTS MADE?
To protect your data the IRS & FTB have tough security. Therefore, it is very difficult for us to access this information on your behalf.

COVID-19’s IMPACT ON THE IRS & FTB:
Due to the COVID-19 pandemic the IRS and FTB have been overwhelmed and are backlogged.

COVID-19’s IMPACT ON TAX NOTICE RESOLUTIONS:
Clearing up notices with the IRS and FTB has become a cumbersome and time intensive process. We are experiencing extremely long wait times on the phone and very little (or no) response when communicating via mail. Ultimately, this has become a more costly process for our clients.

WHAT DO YOU NEED TO DO?
Please provide us with exact dates and amounts of all Estimated Tax Payments made for tax year 2020 so we may prepare an accurate return.

If you have any questions or concerns, please do not hesitate to contact us.

Wishing You Continued Health & Safety,

 Maeda Palius, Jason Janzen, Annika Jensen and the POJ Team

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