Rex L. Crandell
cpa, mba, attorney
Dear Clients, Colleagues and Friends,
ITíS TAX FILING SEASON AGAIN! There have been many changes to Federal and California tax laws. If you would like our free written outline of some of the new tax law changes for 2007 tax returns, let us know. It is less than ten pages in length. You may find some interesting issues that you would want to consider.
THE TAX PREPARATION PROCESS:
Step One: COMPLETE THE TAX ORGANIZING CHECKLIST & MISCELLANEOUS QUESTIONS. Please review the enclosed Tax Organizer carefully for the items affecting you. Kindly have it completed before your appointment. Answer all of the questions on the sheet called Miscellaneous Questions. California is requiring electronic filing of tax returns unless you sign an "Opt-Out" election on Form F.T.B. 8454 stating that you have elected to not electronically file your tax returns for 2007. Please fill in the tax refund information in the Miscellaneous Questions list so you will be ready for your tax interview. Your cooperation in filling out the tax organizer will allow for more efficient processing of your tax returns. Make sure that all requested information is provided in full, and allow our office to make any necessary calculations. We need all pertinent details in order to make your tax liability as low as the law allows. IRS wants all tax data rounded off to the nearest dollar, so we request that you provide us with data with the pennies removed.
The IRS computers crosscheck information sent to you on 1099 forms against what shows on your tax return. To avoid being penalized, as well as unnecessary correspondence and aggravation from the IRS, please report all income, and bring all W-2, 1099, and 1098 forms to your tax interview in case they are needed.
® If you sold stock, mutual funds, or other property during the year, please bring the brokerís transactions and year-end statements. The stockbrokerís or mutual fundís year-end summary report that comes with the 1099 form may be more useful than the December investment statement. Be ready to answer questions about the date acquired, original cost, date sold and sales proceeds for each investment that you sold during the year. Some mutual funds are giving investors the average original cost per share sold, which is very helpful. The tax forms do not require the per share price of securities.
® If you used your car for business, you will need to report the estimated total of business miles driven for the year. We will also need to know how many miles were put on the car for ALL driving during the year, business and personal, combined. Please fill out the Vehicle Information Summary Sheet.
® If you have any tax questions that you would like to discuss, please bring them to the tax interview.
® If we have not received all the necessary information to complete your tax returns by March 19th, we will need to prepare and you will need to file an Extension of Time to File form. This will allow you to file your tax forms after April 15th. There is no penalty if a properly prepared Extension of Time to File form is filed prior to the filing deadline, and as long as you send in any tax that you owe along with the extension form. The time between March 19th and April 15th is when the workload and stress is the heaviest in our office, and we have to change our focus to preparing extension forms. Please plan to have your tax project done either before March 19th or after April 15th.
® For those of you who prefer to mail in your tax information and tax organizer, please do so before March 15th. Be sure to fill out the Client Information Sheet, sign the attached tax representation engagement letter and fill out the Miscellaneous Questions list. Please include your telephone numbers during the day and evening where we can reach you if we have any questions. A fax number or e-mail address may prove to be helpful for some communication. For more complex situations or businesses, it may be better to come into the office so we can go over and clarify the issues together.
Step Two: MAKE YOUR APPOINTMENT TODAY. Please call and ask for Jeanine to put you on my calendar. Now is the time to begin gathering the items on the enclosed Checklist of Things to Bring, and to complete your Tax Organizer and Miscellaneous Questions list. The sooner you make your appointment, the sooner you will receive your refund, or you will at least find out where you stand for 2007 without any last minute surprises.
If you are missing some data or documents, I suggest you set up your appointment anyway, and you can mail, fax, or e-mail the missing information later. We will begin tax interviews on January 19, 2008. Our weekday office appointment hours will be 8 a.m. to 7:30 p.m., and Saturdays until 5 p.m. If you need an earlier, later, or a Sunday appointment, please let us know. We request that you give us at least 72 hours notice if you need to change your appointment, so that we can accommodate our other clientsí scheduling needs.
Thank you for your past and continued patronage. We go the extra mile to see that you pay the lowest tax possible. We are accepting new clients, and you can help in this process. Please ask your social contacts, family members and co-workers to call us for help. Contact us if you have any questions. Linda, Maggie, Heather, Rosa and and I look forward to seeing you, and we wish you a happy and prosperous year during 2008.
Very truly yours,
Rex L. Crandell Firm