If you watch the daily news, you may have heard that the IRS is understaffed and they plan to be way behind during this year's tax season. Calling the IRS office with questions can take up most of your day. 

So, direct from the IRS, this is a guide to help you find answers to most tax return questions. You can also contact GLM and one of our accountants can also answer you. 
As people get ready to file their 2021 tax return, the IRS reminds taxpayers they can find answers to their tax questions from the comfort of home using IRS online tools and resources. These IRS.gov tools are easy to use and available anytime.
• Choosing a preparer. The IRS has several options for finding a tax preparer. One resource is Choosing a Tax Professional, which offers a wealth of information for selecting a tax professional. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help taxpayers find preparers in their area who currently hold professional credentials recognized by the IRS or who have an Annual Filing Season Program Record of Completion.
 
• Interactive tax assistant. This tool has answers a variety of tax questions. It can also help a taxpayer determine if a type of income is taxable. Many people experienced changes to income and other life events in 2021. This tool can help them find tax credits and deductions.
Taxpayers may qualify for the child tax credit and child and dependent care credit. Those who are not eligible for the child tax credit might be able to claim the credit for other dependents. Individuals paying higher education costs for themselves, a spouse or a dependent, may be eligible to save some money with education tax credits or deductions. Additionally, low-to moderate-income taxpayers may qualify for the earned income tax credit.
• Getting banked and setting up direct deposit. Direct deposit gives taxpayers access to their refund faster than a paper check. Those without a bank account can learn how to open an account at an FDIC-insured bank or through the National Credit Union Locator tool. Veterans should see the Veterans Benefits Banking Program for access to financial services at participating banks.
• Setting up or reviewing IRS Online Account The IRS encourages taxpayers who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.
• Paying a tax bill. The IRS offers several ways for taxpayers to pay their taxes including online, by phone or through the IRS2Go app. Direct Pay is free and a safe way to pay taxes or estimated tax directly from a checking or savings account. Direct Pay has five simple steps to pay in a single online session and is also available with the IRS2Go mobile app.
More information:
Publication 5348, Get Ready to File
Publication 5349, Year-Round Tax Planning is for Everyone

​There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filing experience goes smoothly in 2022. They can start by visiting the Get Ready page on IRS.gov. Here are some other things they should do to prepare to file their tax return.

Gather and organize tax records
Organized tax records make preparing a complete and accurate tax return easier. They help avoid errors that lead to processing delays that slow refunds. Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately. This includes:

• Forms W-2 from employers
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
• Form 1099-INT for interest received
• Other income documents and records of virtual currency transactions

Taxpayers should also gather any documents from these types of earnings. People should keep copies of tax returns and all supporting documents for at least three years.
Income documents can help taxpayers determine if they're eligible for deductions or credits. People who need to reconcile their advance payments of the child tax credit and premium tax credit will need their related 2021 information. Those who did not receive their full third Economic Impact Payments will need their third payment amounts to figure and claim the 2021 recovery rebate credit.

Taxpayers should also keep end of year documents including:

• Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments
• Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance premium tax credits for Marketplace coverage

Confirm mailing and email addresses and report name changes
To make sure forms make it to the them on time, taxpayers should confirm now that each employer, bank and other payer has their current mailing address or email address. People can report address changes by completing Form 8822, Change of Address and sending it to the IRS. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office. They should also notify the Social Security Administration of a legal name change.

View account information online
Individuals who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.

Review proper tax withholding and make adjustments if needed
Taxpayers may want to consider adjusting their withholding if they owed taxes or received a large refund in 2021. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee's Withholding Certificate, each year and when personal or financial situations change.
​
People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022.

'Tis the Season... for Business Planning! 2022 should be your best year ever! If you have not started planning for the success of your business, now is a great time to start. Below is a suggested outline and next week, we can focus a little more.

​1. Executive Summary

2. Current Situation

3. Vision

• Mission Statement
• Goals (long range)
• Objectives (short/medium range)

4. Management

5. Product / Service Description

6. Market Analysis

• Customers
• Competition
• Opportunities
• Risks

7. Marketing Strategy

• Personnel
• Facilities / Equipment
• Pricing & Profitability
• Advertising & Promotion
• Public Relations
• Selling Tactics
• Distribution Channels
• Business Relationships

8. Production / Manufacturing Strategy

• Personnel
• Facilities / Equipment
• Intellectual Property
• Regulation / Compliance
• Supply Chain
• Business Relationships

9. Administrative Strategy

• Personnel
• Facilities / Equipment
• Management Information
• Worker Administration & Benefits
• Regulation / Compliance
• Business/Professional Relationships

​10. Financial Information 

• Pro Forma Balance Sheets (for 5 years into the future)
• Pro Forma Income Statement (for 5 years into the future)
• Detailed Budget (for next 12 to 24 months into the future)
• Cash Flow Projection (for next 12 to 24 months into the future)
• Break Even Analysis (show growth steps, if applicable)
• Summary of Existing Resources (people and money)
• Potential Sources of Funding

Amrita Jayakumar Nov 30, 2021 Be smart about holiday generosity - NerdWallet

2020 asked a lot from us. We faced new challenges and reckoned with old ones, and often the world’s problems collided with our own individual needs. Help — whether in donations or even just attention — might’ve been hard to give when you required some yourself.

If your finances are in better shape this giving season, you can be more strategic with your dollars. The same issues you felt strongly about last year may not be on your priority list now. Perhaps the reverse is true — you’re more determined than ever to support the causes you care about.

Here are tips on prioritizing causes, supporting them effectively and making room in your wallet for sustained giving.

Your priorities can shape your plan
Write down the two or three causes that matter most to you, whether it’s a global issue like slowing down climate change or something closer to home, like supporting your local animal shelter. This is the start of your giving plan.

A small, regular donation can make a big impact
One powerful way to champion your favorite cause is through small, recurring donations.

How to choose which organization to support
You’ve got your giving plan in hand and know the importance of recurring donations. Now how do you actually choose where to send your money?

Read the full article here: https://www.nerdwallet.com/article/finance/sustained-charitable-giving 

From Tom Gosche:

"The Friendly Club,” as the Rotary Club of Schaumburg / Hoffman Estates is known, was founded in 1969 by a dedicated group of local business leaders committed to making their community and the world a better place to live. 

The members can be found in your community, as well as, around the globe. Visit the Local Website at www.scherotary.org 

​Direct from the IRS, the best way to set up your charitable donations. If you or your business has specific questions or situations, please contact us here at GLM.

Tool on IRS.gov helps taxpayers research charities before making donations
When people are done giving thanks at the dinner table, many start another kind of giving. The annual Giving Tuesday happens the week after Thanksgiving to kick off the season of charitable giving. This year, Giving Tuesday falls on Tuesday, November 30.

Taxpayers may be able to deduct donations to tax-exempt organizations on their tax return. As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov is a tool that allows users to search for charities. It provides information about an organization’s federal tax status and filings.

Here are four facts about the Tax Exempt Organization Search tool:

• Donors can use it to confirm an organization is tax exempt and eligible to receive tax-deductible charitable contributions.
• Users can find out if an organization had its tax-exempt status revoked. A common reason for revocation is when an organization does not file its Form 990-series return for three consecutive years.
• EO Select Check does not list certain organizations that may be eligible to receive tax-deductible donations, including churches, organizations in a group ruling, and governmental entities.
• Organizations are listed under the legal name or a “doing business as” name on file with the IRS. No separate listing of common or popular names is searchable.

Taxpayers can also use the Interactive Tax Assistant, Can I Deduct my Charitable Contributions? to help determine if a charitable contribution is deductible.

Taxpayers may also want to decide now if they’ll itemize their deductions when they file next year. Last year’s tax reform legislation made changes to the standard deductions and itemized deductions. Many individuals who formerly itemized may now find it more beneficial to take the standard deduction. So, taxpayers should check their 2017 itemized deductions to make sure they understand what these changes mean to their tax situation for 2018. More information about these changes is on IRS.gov/taxreform.

More Information:
Tips for Tax Exempt Organization Search
Tax Exempt Organization Search: Frequently Asked Questions
Tax Reform Basics for Individuals and Families

IRS YouTube Videos:
Tax Exempt Organization Search English | ASL

​The above is directly quoted from the IRS newsletter: Tool on IRS.gov helps taxpayers research charities before making donations. It is direct information from the IRS as the best way to set up your charitable donations. Again, if you or your business has specific questions or situations, please contact us here at GLM.

​Thursday is Thanksgiving, a time of the year to give thanks for what you have. Take time to reflect on the year so far and look at all you have accomplished.

In upcoming blogs and GLM's newsletter we will look at tax ramifications of giving to charities and non-profits. We will also give you some you may be able to give to. Until then:

Happy Thanksgiving from your friends at GLM Financial.