Davis Tax Services, LLP

Tax planning, preparation & problem resolution

Countdown to April 15:

In-person tax appointments temporarily suspended

We have suspended conducting in-person tax appointments, in consideration of the CDC's "stay home" tax guidance to slow the spread of coronavirus.

We will continue to prepare and file tax returns during this turbulent time. Thankfully, current technology gives us easy options to serve taxpayers.

To provide your tax documents to us, you may:

  1. Upload electronic documents (PDF, etc) to our secure online file space. (Email us for details)
  2. Place paper documents in the black lockbox next to my office door (drop slot in the top, under the flap).
  3. Snail mail paper documents to our office.

You can also email documents, although that method is not secure. If you don't have a scanner, you can photograph documents with a smartphone.

Connect with me

  1. Email: forrest @ davis-tax .com
  2. Phone: (520) 393-8813 (Be aware that with the phone volume during tax season, this is not always the easiest way to reach me.)
  3. Text message (new)
  4. On Zoom, Skype or Google Hangouts

Thank you for your patience and cooperation through this turbulent time.

July 15 -- wait or file now?

Because the COVID-19 pandemic has shut down so many businesses, the IRS postponed the filing and payment dates for returns and payments due April 15, 2020.

But should you wait the extra three months to file? Maybe not.

First, if you expect a refund, file now if you can and get it sooner.

Also, if you get a refund direct-deposited, IRS will use that bank info to direct deposit the Economic Stimulus Payment. Otherwise, a check will be mailed, but that may take a few months to arrive.

IRS will use direct deposit information from 2019 returns if they have been filed. If not, they will pull from your 2018 return. If you have changed banks since filing your 2018 return, you will want to file your 2019 return quickly so IRS has your current bank information.

What if you owe?

There's still a good reason to file earlier: beat scammers from filing a fraudulent return in your name and nabbing a refund -- and possibly your Economic Stimulus Payment.

Just because you file now doesn't mean you have to pay now. You will still have until July 15 to pay IRS and Arizona without penalty.

If you are considering contributing to an Individual Retirement Account (IRA) or Self-Employed Retirement Plan (SEP), you have until July 15 to make your contribution. The contribution does not have to be made before you file. If you're going to get a refund, filing now will give you cash from the refund that you can use to fund your IRA.

Contributions to charities and schools for the Arizona "dollar-for-dollar" credits still have to be made by Apr. 15.

If you need more time beyond July 15 to pull together your personal tax return, an extension can be filed up to July 15. The extension will move the filing date to Oct. 15, but any balance due still needs to be paid by July 15.

Latest coronavirus-related tax news

Economic Impact Payment: If the IRS does not have current bank information for you to be able to do direct deposit, you can provide your current bank info at https://www.irs.gov/coronavirus/economic-impact-payments. Currently, the service is available for people who have not filed a return. Within the next few days, a tool will be available to update bank info for taxpayers who have filed.

Social Security recipients who don't need to file tax returns and have their Social Security benefits direct deposited don't need to do anything. They will receive their Economic Impact Payments based on the Social Security information.

The Economic Impact Payment will not be taxable on your 2020 tax return.

June 15 estimated payment: Besides the April 15 estimated tax payment previously extended, today's the IRS has now extended relief to estimated tax payments due June 15, 2020. This means that any individual can wait until July 15 to make that payment, without penalty.

Paper returns: The IRS is not currently able to process individual paper tax returns. All taxpayers are urged to file electronically. Paper returns will be processed once processing centers are able to reopen.

Calling IRS: IRS phone lines supported by customer service representatives for both taxpayers and tax professionals are not staffed at this time.

IRS Coronavirus news: In addition to https://www.irs.gov/coronavirus, IRS has set up a separate page for the flood of coronavirus-related news releases: https://www.irs.gov/coronavirus/coronavirus-and-economic-impact-payments-resources-and-guidance.

Latest IRS info:

-- Coronavirus Tax Relief Center

-- Filing and Payment Deadline Extended to July 15, 2020 - Updated Statement

-- Coronavirus-related paid leave for workers and tax credits for small and midsize businesses to swiftly recover the cost of providing Coronavirus-related leave

Coronavirus Tax Relief

The IRS and Arizona have extended the due date to July 15, 2020, both for filing income tax returns and for payments due on those returns for individuals and other unincorporated entities.

Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020. Taxpayers will not need to appy for relief from penalties and interest for payments made during this time.

The IRS established a special webpage at IRS.gov/coronavirus for tax-related information. For more information, see Tax Day now July 15 and Treasury and IRS Issue Guidance on Deferring Tax Payments Due to COVID-19 Outbreak

What to do at the last minute

First, tax appointments are still available if you haven't yet gotten your return prepared. Weekday, evening and Saturday appointments are available for your convenience. Call or email now!

We can still prepare straightforward returns until Apr. 12. For more complicated returns and real last-minute returns, we will apply for extensions. While extensions are for six months, we can do the return right after Apr. 15 so you don't have to stay in suspense. By working on extension rather than rushing, however, we can take the time to do the most thorough return for you and be sure you are paying no more taxes that you should.

Need a tax organizer to help pull everything together for tax time? Visit our Worksheets & Forms page for helpful worksheets.

You may also want to look at the Investopedia.com article 10 Steps To Tax Preparation

How much can I deduct?

Many charities provide donation receipts without giving a value. If you need to determine how much to claim for your donations, check these sites:

Where's my refund?

Click here to get an instant answer from the IRS. You'll need the exact dollar amount of your refund, Social Security number and filing status.

For Arizona refunds, visit Check Refund Status.

Limited partnership annual reports due by Apr. 30

If you have a Limited Liability Partnership (LLP), an Limited Liability Limited Partnership (LLLP) or a Family Limited Partnership (FLP), an annual report must be filed by April 30. Regular Limited Partnerships (LP) do not have to file.

The fee is $3 for annual reports received by the Arizona Secretary of State's office between Jan. 1 and Apr. 30. Late fee is $28 for returns filed May 1 through Dec. 31.

Forms are available for download and may be mailed or dropped off at the Tucson or Phoenix Secretary of State's office.