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The official start of the tax filing season is quickly approaching!

We are constantly upgrading our processes and seeking ways to better serve you.

In preparation for the 2024 filing season, we have enhanced some of our procedures:

We encourage you to submit your complete tax information/documentation to us as soon as possible. Returns will be scheduled to be prepared four weeks from the receipt of all your tax information required for the year and your completed signed engagement letter.

If you choose to begin uploading documents as they become available, please email us once all your documents are in the portal.

The deadlines for submission of tax information/documents to CHVL for 2024 calendar year returns are as follows:
Partnership and S Corporation is February 7, 2025
Individual/Personal returns is March 15, 2025
Tax Exempt Organizations is April 15, 2025

Tax files with missing information after these dates will automatically be put on extension and scheduled to be prepared eight weeks from the receipt of all the tax information required for the year and your completed signed engagement letter.

To be more efficient, we will only begin working on returns once all supporting documentation is received, including but not limited to:

W-2, 1099, 1098, K-1 etc.
Federal and State estimated payments made for tax year 2024 if not done by CHVL.
Itemized expenses– please provide a listing of expenses, you do not need to send individual receipts, stubs etc. You can keep those for your records. Itemized expenses include:
Medical, Dental & Vision bills
Charitable contributions
Non-Cash donations
Date of donation
Name and Address of the 501(c)3 Organization that received the donation.
Brief description of the donation
Fair market value of the donation
For Schedule C filers, please provide business expenses by category such as meals, gas, travel, supplies, postage etc. (See Sample Worksheets in the public portal attached).
For those participating in the healthcare marketplace provide a copy of the form 1095A
For those filing in a state with a health mandate please provide a copy of your form 1095B for each taxpayer and dependent listed on your tax return.

Additional filings may be required it you have had any of the following transactions in 2024:

if you directly or indirectly hold any interest or signatory authority in any assets in a foreign country.
if you have received, sold, exchanged, or otherwise acquired any virtual currency.
if you have made any gifts totaling more than $18,000 in value.

If you had any of these transactions, please let us know so we can review the additional reporting with you and send you an arrangement for additional services.

To help assist you in collecting and reporting information necessary for us to prepare your 2024 income tax return, we have attached a link to the 2024 Tax Return Questionnaire to this email, we will also add a personalized organizer to your Smart Vault containing your 2023 tax information before the end of January.

Here is the link to our Public Documents folder:
https://CHV.smartvault.com/users/secure/ElementBrowser.aspx?type=Folder&id=k-cWZZYM50qgVUrXsz67bw

As always, we are here to answer any questions you may have please contact us at officemanager@chvfirm.com.

Thank you for entrusting us with your tax preparation and filing, we truly appreciate your business.

The Cronin, Hanley, Van Zile & Lorenzo Team

Please note this is a general automated reminder.

Cronin, Hanley, VanZile & Lorenzo
17 Kiel Avenue, Suite 1
Kinnelon. NJ 07405
www.chvfirm.com
O: (973)492-3069
F: (973)850-0197

1099s must be issued and filed by January 31, 2025, to avoid late filing penalties.

We must receive the W-9’s you collected and your list of eligible vendors/contractors by January 15, 2025. If we do not receive all the information by this date, we cannot guarantee filing and mailing for the forms by the required deadline.

As a courtesy – please let us know if you do not need this service this year.

If we do not hear back from you by January 17th – we are going to assume that you do not require this service for this year.

You will need to file Form 1099-NEC or Misc for each individual/company (not including C & S corporations) to whom you have paid $600 or more during the year via check, bank transfer or cash. If you do not have a form W-9 for a service provider or contractor that shows they do not require a 1099 then one needs to be filed. The IRS only accepts a valid W-9 form as proof that a vendor can be excluded from this.

You need to issue a 1099 for payments that are made from your trade or business bank accounts that total more than $600 to an individual or vendor. You are not required to report payments made by credit card or payments made from your personal accounts that are not part of your business. Note: other payments may have lower filing thresholds such as interest and royalties please let us know if you have any other special filings.

Payments for the following services/activities need to be reported.
Rents (1099-MISC)
Services performed by someone who is not your employee: whether a contractor or vendor who is a service provider. (1099-NEC)
Payments to an attorney (regardless of type of entity) (1099-NEC)
Prizes and awards (1099-MISC)
Other income payments, i.e., interest on a personal loan
see the full list at https://www.irs.gov/instructions/i1099mec

If you have not already, please request each individual/company who meets the above conditions to fill out the attached Form W-9. You should obtain a new W-9 form each year from each of your vendors. The latest W-9 provided by the IRS shows a revision date of 03-2024. Any forms with a revision date prior to this may not be accepted by the IRS as valid proof.

Misclassification is the practice of classifying employees as independent contractors. Misclassification is illegal regardless of whether the misclassification was intentional or due to a mistaken belief that workers are independent contractors. It is your responsibility for all hiring decisions and employee classification for your business. If you have questions regarding worker classification, you should consult with your legal counsel.

Here is a link to the NJ website that provides guidance on how to classify your workers. Even though this is for NJ most states follow the same general guidelines.
https://www.nj.gov/labor/worker-protections/myworkrights/independentcontractors.shtml

The IRS imposes penalties for failure to file information returns electronically on a timely basis (as well as the failure to furnish returns to payees on a timely basis). In addition, the IRS may also assess penalties if a filer fails to include all the information required to be shown on a return (e.g., taxpayer’s TIN) or reports incorrect information (e.g., incorrect dollar amount).

Here is the current schedule of penalties relating to forms 1099.
If you correctly file late within 30 days of deadline: $60 per form.
If you correctly file late after 30 days but file by August 1: $130 per form.
If you correctly file late after August 1: $330 per form.
Intentional disregard (no filing): $660 per form

Please contact us with any questions.

Cronin, Hanley, VanZile & Lorenzo
17 Kiel Avenue, Suite 1
Kinnelon. NJ 07405
www.chvfirm.com

The official start of the tax filing season is quickly approaching!

We are constantly upgrading our processes and seeking ways to better serve you.

In preparation for the 2023 filing season, we have enhanced some of our procedures:

• The deadlines for submission of tax information/documents to CHVL for 2023 returns are as follows:
  • Partnership and S Corporation is February 15, 2024
  • Individual/Personal returns is March 15, 2024

• We encourage you to submit your complete tax information/documentation to us as soon as possible.  Files submitted after these dates will automatically be put on extension if we have a signed engagement letter, and your return will be completed within 4 weeks of receiving all your documentation.

• To be more efficient, we will only begin working on returns once all supporting documentation is received, including but not limited to:
  • W-2, 1099, 1098, K-1 etc.
  • Federal and State estimated payments made for tax year 2023 if not done by CHVL.
  • Itemized expenses– please provide a listing of expenses, you do not need to send individual receipts, stubs etc. You can keep those for your records. Itemized expenses include:

o   Medical, Dental & Vision bills

o   Charitable contributions

o   Non-Cash donations

• Date of donation
• Name and Address of the 501(c)3 Organization that received the donation.
• Brief description of the donation
• Fair market value of the donation

• • For Schedule C filers, please provide business expenses by category such as meals, gas, travel, supplies, postage etc.
  • For those participating in the healthcare marketplace provide a copy of the form 1095A
  • For those filing in a state with a health mandate please provide a copy of your form 1095B

Additional filings may be required it you have had any of the following transactions in 2023:

• if you directly or indirectly hold any interest or signatory authority in any assets in a foreign country.
• if you have received, sold, exchanged, or otherwise acquired any virtual currency.
• if you have made any gifts totaling more than $17,000 in value.

If you had any of these transactions, please let us know so we can review the additional reporting with you.

To help assist you in collecting and reporting information necessary for us to prepare your 2023 income tax return, we have attached a 2023 Tax Return Questionnaire to this email, we will add a personalized organizer to your Smart Vault containing your 2022 tax information by the end of the week.

As always, we are here to answer any questions you may have please contact us at officemanager@chvfirm.com.

Thank you for entrusting us with your tax preparation and filing, we truly appreciate your business.

The Cronin, Hanley, Van Zile & Lorenzo Team