6320 West Forest Home Avenue
On February 18th, 2021, Governor Evers signed Assembly Bill #2 into Law. This is important as this Law provides conformity to the Federal tax law. Before we get into the news, let's explain how State Income Tax Conformity works.
The Federal Government will have a bill go through the Congress and eventually be signed into Law. (For a fun video primer on THAT whole process, check out "I'm Just A Bill" by Schoolhouse Rock) The new law may have provisions that change Federal Tax Law, otherwise known as the Internal Revenue Code (IRC). States link to the IRC in various ways. Some states have laws that allow for automatic conformity to the IRC. This is called rolling conformity and essentially means that any IRC changes will automatically apply to that state unless the state enacts legislation to decouple from specific changes for that tax year. About half of the states in the nation have rolling conformity. The remaining half of the states choose a fixed date or a 'static' date. The state income tax code is linked to the IRC as it exists on a specific date. These states do not automatically conform to Federal Law changes, it takes specific action by the legislation to enact all or some of the new Federal Law as listed in the IRC.
Wisconsin is one of the static date states.
The Federal government passed the CARES Act on March 27, 2020. Governor Evers signed into law Wisconsin Act 185 on April 15, 2020 which adopted a large number of tax provisions from the CARES Act. The state of Wisconsin, for the most part, coupled with Federal law. But then, the Federal Government created new legislation that was signed into law on December 27, 2020 known as the "Consolidated Appropriations Act" which changed many of the tax provisions that were initially put into law nine months earlier. Wisconsin had to take action to couple with those changes or to take no action and stick with the initial CARES Act laws. Assembly Bill #2 now allows Wisconsin to couple with the IRC.
You may ask how this impacts me. For right now we are digging through the details of what was coupled and what is decoupled from the "Consolidated Appropriations Act." For those businesses with Paycheck Protection Program Loans, the tax considerations for the state of Wisconsin have now changed. There may be other provisions in the new law that change as well. The tax planning you received in the summer of 2020 is different from any tax planning done in January, 2021, which is now again different from any Tax planning today and going forward.
It is the constant change of Tax Law that makes a tax preparation service your best friend. We are constantly staying on top of tax law changes through training and research. We can advise you on those changes, both current changes and upcoming tax law changes, and help you navigate your financial ship through the choppy waters of the tax ocean.
Let's face it, 2020 as a year has been life changing for everyone! The appearance of COVID-19 on the scene has caused so many disruptions to life and business. We are definitely still here, and have been open throughout the year. We are open now and will be open in 2021 and preparing tax returns as we have been doing for the last 60+ years. Like so many other businesses, we have made adjustments to protect both our clients and our employee's throughout this pandemic. Here is what we are planning for the upcoming 2021 tax season as we prepare 2020 tax returns.
OUR FIRST PRIORITY IS SAFETY:
In order to ensure the health of safety of our clients and our employee's, we will be instituting a drop off only process for this upcoming tax season. We simply cannot have large gatherings of clients in our waiting room, it is just not possible in light of the current pandemic. Rest assured, we do plan on going back to a live and in person tax preparation process in 2022 with the assumption that the vaccine will have allowed everyone to begin gathering like normal again. But, for 2021 we will be preparing tax returns by drop off only.
We have done as much as we possibly can to minimize the exposure to COVID 19 at our tax office. We are asking anyone entering the building to wear a mask. Medify Air Filters with HEPA 13 filters are being utilized to help with air circulation. We are asking all clients to please NOT come into the office if you are sick or experiencing any COVID 19 symptoms or test positive for COVID 19.
NEW TECHNOLOGICAL OPTIONS FOR COMMUNICATION:
We have been working diligently over the last half of 2020 to upgrade our systems and we now have more options then we have ever had before to communicate with our clients.
While telephone conversations will remain the core method of communication with our clients, Acc-U-Rite Tax now has the ability to text you directly if you so desire. Please include your Cell Number on the Income Tax Checklist when dropping off your tax paperwork.
As part of our technological upgrades we now have a new, user-friendly Client Portal. If you are interested in utilizing this for your tax return please give us a phone call. For existing clients we can send you a link to create your portal access. Once you have established your user name and password you can upload several document types including: PDF files, JPG Images, WORD Doc’s, and EXCEL Doc’s. We can work on the tax return and when finished, we can download your tax return documents onto your portal.
This portal also provides the capability for remote client E-Signatures and online credit card payments for the tax preparation fee. In essence, you would not even need to leave your home as the entire process has the potential to be done remotely. Please note that the portal will ONLY be created if specifically requested by an existing client. This portal can NOT be created for a new client as we have to meet you in person to verify identity and establish you in our system.
Acc-U-Rite Tax Service has been a family owned company since the 1950’s. We understand that this year has been horrible for so many people. Everyone will remember 2020 as an extremely challenging year. These challenges can greatly affect your tax return this year. In some instances, the decisions you make on your tax return could potentially impact your 2021 and 2022 tax return as well. I personally hope and pray that you and your family is as safe and healthy as can be during this difficult time. We stand ready to assist you as we navigate this unique year.
Jason R Rose
President & CEO