Stephen Merritt, CPA, PC  |  Certified Public Accountants  |  (757) 420-5778
233 Business Park Drive, Suite 104, Virginia Beach, VA 23462

Your monthly news & updates

Louis is a Rootin’ Tootin’, Cowboy Shootin’

What’s Inside

• Understanding Your IRS Notice
• 5 Ways to Rejuvenate, Refresh, and Revive Your Entrepreneurial Passion
• Happenings at SMCPA
• Guess Who!
• Surprise Visitor at the Office!
• Hours of Operation
• COVID-19

Understanding Your IRS Notice

Dealing with the IRS can be stressful! There are taxpayers who receive an IRS notice and because they are so fearful, they will pay the notice without verifying the accuracy. The IRS may not have all the facts, so do not pay anything without checking the details. Also, do not ignore any letter sent by the IRS—doing so will only make the situation worse. Understanding your IRS notice empowers you to make the most informed decision for your situation.

The IRS sends notices and letters for the following reasons:

• You have a balance due
• You are owed a larger or smaller refund
• The IRS has a question about your tax return
• The IRS needs to verify your identity
• The IRS needs more information to process your tax return
• The IRS changed your return
• There are delays in processing your return

(Remember, the IRS will never call you on the phone to collect money or verify your identity; if someone says they are the IRS on the phone, it’s a scam! Don’t fall for it.)

First, check the type of notice that the IRS sent you (example: Notice CP2000 indicates that the information contained in the tax return doesn’t match what was reported to the IRS by third parties) and review which tax year this applies to. This information will be included in either the upper right- or left-hand corner of the notice.

Read the notice carefully. If the tax return was changed by the IRS, compare the information listed on the notice with your tax return. Review line items thoroughly and determine what numbers are different.

In 2020 and 2021, the IRS fell behind processing returns and especially those that were filed on paper. That resulted in a LOT of IRS letters going out that were just plain wrong because the paper returns had not been entered into the system yet.

If you agree with the notice and there is a balance owed, make certain to pay it by the due date to avoid additional fees and penalties. If you can’t afford to pay the full amount listed, pay as much as you can now. If you need to pay over time, consider applying online for an installment agreement.

If you disagree with the notice, be sure to follow the instructions included in the letter that indicate how to dispute their findings. Often, you will need to provide not only an explanation of why you disagree, but also the documents that support your position. The notice will also tell you the timeframe you need to respond in and how to do it (ex: mail or fax). Responding timely preserves your right to appeal an IRS decision if you don’t agree with it!

And this is where you will probably want to get expert representation anyway, especially if the IRS says you owe a lot. The only three types of tax professionals that can represent you in front of the IRS are CPAs, Enrolled Agents, and attorneys.

Always provide any IRS correspondence to your tax preparer!

There may be information contained in the notice that impacts the following tax year, which is important for your tax preparer to be aware of. Most of all, reach out to your tax preparer for assistance if you do not fully understand the notice. Getting them involved early could save you a lot of worry, and maybe even some money if penalties can be waived.

5 Ways to Rejuvenate, Refresh, and Revive Your Entrepreneurial Passion

Most entrepreneurs would agree that owning a business is an incredible privilege, and they would likely never want to go back to working for someone else. However, we all have our days! And sometimes those rough days can turn into weeks. If we’ve temporarily lost a little bit of our entrepreneurial passion, how can we get that back? Here are some tips.

Customer Reviews

Reading reviews left by customers about your business can help you see things from your customers’ eyes. If the reviews are positive, they can help you see the impact your business has made on them which can boost your motivation. If the reviews are glowing, then this task alone can fuel your rejuvenation. After all, you have a lot more people you can make a difference with!

If you don’t have reviews, ask for them. The first time you do this, it can be an amazing experience.

Personal Self-Care

Make sure to allocate enough time for personal care. No one can work 24/7 and survive without burning out. Try soothing activities like yoga, meditation, or a spa day if you just need some tranquility. Make it a regular habit, and you’ll be better balanced when you go to work.

Goal Reset

If you’ve been skirting by the last few years on incremental or unchallenging goals, it might be time to give yourself a BHAG – big hairy audacious goal – as mentioned in the book Built to Last. This is an ambitious, long-term goal that can help to propel the entire company into a mission to reach it.

If you feel your employees could use some rejuvenation as well, schedule a goal-setting retreat for the entire company. Everyone will come back with renewed energy and a new purpose.

Education

The thing about being an entrepreneur is you never stop learning. New skills are required every time you reach a new level in your business. Changes in technology, science, and government compliance trickle down to small businesses, requiring changes to your business processes on a constant basis.

Take a new class or read a book to learn something that will improve your business. You’ll be full of ideas that you can implement to make your business better.

Delegation

We all have tasks in our businesses that we love to do and tasks that we do not love to do. If you’re doing too many of the “don’t love” tasks and not enough of the “love this task,” this can take a toll on your attitude. If you have staff, delegate the things you don’t love – and find staff that really love to do them. That way, you can focus more on the good stuff for yourself.

New Project

Is there a project that you’d love to do but has been on the back burner forever? Making it a priority may just be the reset button you need. Sometimes things that are urgent get done while things that are important but not urgent have to wait. Change the priority of those projects that are important and you will feel lighter.

Vacation

Last but not least, maybe you just need to get away for a while, then come back with a new perspective. For that, a good old-fashioned vacation, complete with air fares and hotel rooms, is the ticket.

If you’ve been working hard lately and it’s been grinding you down, try one of these tips to relax, refresh, and rejuvenate your passion for your business.

Happenings at SMCPA

Guess Who?!

What a cute photo! Who at the office do you think it is??

Barbara Select

Peaches Select

Ann Select

Vic Select

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Steve Select

Louis Select

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Surprise Visitor at the Office!

Coronavirus Disease (COVID-19)

Stephen Merritt, CPA, P.C. understands the challenge the impact COVID-19 has on our community.

Fully-Vaccinated individuals are not required to wear a mask while in our office.

Unvaccinated or not Fully-Vaccinated individuals must wear masks and follow COVID-19 protocol, such as social distancing, while in our office to stop the spread of COVID-19.

Tax documents may be mailed, FAXed, emailed, uploaded to client portal, or dropped off.

Final Returns can be picked up or mailed out.

As always, please call, we are happy to assist.

Stay safe and healthy!