2020 Tax Return Update

04-05-2021Tax Information

As we begin the month of April, please be assured your 2020 income tax return has been prepared and is awaiting CPA review. You should expect to hear from us soon.

With some of the tax law changes that happened in 2021 that affected 2020, we have been awaiting guidance from the IRS for updated forms and how to report certain items correctly the first time. The tax returns become more complex (e.g., reconciling stimulus payments, cryptocurrency, due diligence reporting for tax credits, etc.) each year and we are attempting to keep everyone in compliance.

The IRS extended the filing and payment deadline for individual income tax returns to May 17. However, not all states have yet to conform to the Federal deadline. Therefore, we may be filing an extension as a preventative measure to protect our clients. Our desire is to get returns filed as soon as all information has been received and reviewed for compliance.

Thank you for your patience and please know our CPAs are working diligently.

The income tax return shows the unemployment compensation as exempt from Federal income tax. However, the State of Arizona has not complied with the Federal treatment of such income, so the unemployment benefits are included as taxable income for state purposes.