The IRS accepts
online payments. To begin using the IRS online
services, taxpayers must first create an online account. New York also requires
account setups to submit payments online. Pennsylvania will allow a taxpayer to
make income tax payments without the creation of an online account. New Jersey allows one time or scheduled online payments
without a personal login. Our Tax Department has created a step-by-step guide
to setting up and using these online payment portals. It is available HERE
and on our website at valleynationalgroup.com/tax
Many other states also offer electronic payments options.
Please contact us if
you have any questions regarding these other state payments.
Third quarter estimated tax payments are
due September 15, 2021. These estimates may include federal, state and/or
local vouchers depending on your situation.
There may be situations where the
estimates were generated, but an overpayment was applied in full or in part. If
your income or withholdings have significantly changed since last year, please
contact your tax preparer to review. If you change or do not make the
estimates, please let your tax preparer know at tax filing time.
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Inflation and Your Portfolio The VNFA Investment Department takes a long-term approach to managing inflation. Although our team stays abreast of all regular data points, we do not endeavor to alter the portfolio meaningfully based on short-term metrics because we feel that we are strongly positioned for a range of long-term inflationary scenarios. Our fixed income portfolio maintains a duration approximately 2/3 of that of the Barclays Aggregate Bond Index, our benchmark. In turn, our fixed income is likely to outperform in an inflationary scenario under which interest rates increase. While our fixed income holdings may underperform in a falling-rate outcome, our investment personnel believe that a persistent declining rate environment is improbable given how low rates are at present. On the equity side, we are invested with a modest growth tilt. Generally speaking, growth companies are relatively insulated from inflation as they oftentimes have pricing power, enabling them to pass higher prices onto their customers and maintain profitability. On the other hand, our equity managers have proven their long-term outperformance in recent periods, which were characterized by tame inflation.
VNFA’s Investment Department remains adaptable to new
information but disciplined with respect to a long-term outlook. WATCH
A SHORT VIDEO to learn more about the general impact of inflation on your
investment portfolio and reach out to your Financial Advisor or our Investment
Department with any questions.
The IRS has created
the ability for taxpayers to create an online account to securely access
information, view notices, make payments and more. Read about the online
benefits and create an account at IRS.gov/account.
The American Rescue Plan includes a significant overhaul of
the child tax credit, but only for the 2021 tax year. The IRS and Treasury
created a website for taxpayers to opt out of receiving advance payments, or to
provide information on status changes that would impact the amount of the
credit at https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Our VNFA Tax Department sent out personalized recommendations
to clients who may be affected last week. Please look for an e-mail from email@example.com, or
reach out to us with any questions.
We are hiring! Our team is seeking to fill client service positions with professional, experienced individuals. Do you know someone who would make a great addition to our Bethlehem office? VNFA – JOIN OUR TEAM
If you owe Federal taxes, you can pay them online! EFTPS® is a free system offered by the U.S. Department of Treasury to pay your federal taxes. However, new enrollments for the system can take up to five days to process. With the payment deadline of May 17 less than a week away, enrollment is encouraged ASAP. Visit IRS.gov for more information.
Tax Q&A RE: Filing for Extension When do I need to get my information to (VNFA) to file in time for the new May 17 deadline? April 15 is our estimate based on current turnaround times. For return information received after that date, our team will be assessing the best course of action, including the option of filing for an extension to file by October 15.
How do you determine when filing an extension is appropriate? There are several reasons and benefits to filing for an extension. Most often the recommendation comes due to late arrival of information. Sometimes that is because they are not available or there are corrections – Schedule K-1s and Form 1099s are frequent culprits. Tax filing season is a finite amount of time and tax preparers get busy. So, taxpayers who are out of town for a period during tax season or clients who simply got their information together too close to that deadline can often take advantage of an extension to relieve the stress that often accompanies trying to pull everything together by tax time. Finally, and especially notable this year, an extension will allow you to take advantage of retroactive changes to the tax law that might be made after the filing deadline, without the added time and expense of filing an amendment.
Does an extension mean there is something wrong with my return or flag me for auditing? No and no. Filing an extension is very simply allowing more time to complete an accurate return. In fact, sometimes, filing an extension can help avoid penalties or errors because of the extra time to evaluate everything. As for the myth that extensions somehow flag taxpayers as an audit risk, some tax professionals theorize that filing an extension will decrease your odds of being audited, since IRS auditors must meet quotas and try to do so early in the year. While the IRS does not disclose its process for selecting returns for audit, the earlier a return is filed, the longer it is in the system and thus subject to a review.