Top 7 Things to Remember When Preparing Taxes for 2021

It’s tax time, with S Corp and Partnership returns due on March 15 and Individual Returns due on April 18. Caldwell CPAs, advisors to The Tourism Academy and your tourism partner for taxes, offers the following...

Top 7 things to remember when filing taxes.

1. Not ready yet to file your taxes?  Taxpayers can file for an extension of filing deadlines, which push the due date by six months. However, if you think you will owe money to the IRS or states, the payment is still due by the original filing deadline. Late payments incur penalties and interest, which most often cannot be waived.

2. Tour Operators and other tour industry professionals are eligible for industry observation deductions at 100% for meals, travel and retreats.

3. Employee Retention Credit -if you had employees in 2020 and 2021, you may be eligible for the Employee Retention Credit. Don’t leave money on the table. Talk to your accountant about this credit. The credit is generated by amending your 941s.  It is available for all 4 quarters of 2020 and Q1-3 in 2021. It is not too late to amend!

4. Net Operating Losses – talk to your accountant about carrying back losses to prior years. This will require amending prior year tax returns, but it is well worth the effort.

5. Received a Notice from the IRS? Don’t panic.  Most Notices are computer generated and can often be easily resolved.   Further, the IRS never calls and asks for money. Notices are only mailed. Talk to your accountant if you get a Notice.

6. Don’t underestimate your Home Office Deduction.  The home office of today doesn’t look like the home office of 1980!

7. Be sure to let your tax accountant know about any pre-paid Child Tax Credits you received as well as any CARES Act Stimulus payments. If you didn’t receive the full amount for which you were eligible, you can still claim them on this year’s tax return. Your tax accountant can help you determine your eligibility.

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About Caldwell CPAs

Caldwell CPAS is the tourism industry’s partner for tax planning and tax return preparation. Caldwell CPAs partners with tour associations in bringing their tax knowledge of the industry to tourism professionals. The tourism tax team at Caldwell CPAs is led by William J. Caldwell, CPA and Lisa S. Curtin, COO. Prior to joining Caldwell CPAs, Lisa had 18 years of experience as VP of Operations for a major tour operator.  The team at Caldwell CPAs truly knows the tourism & hospitality industry.