Statute of Limitations

The IRS has 3 years from the later of the time you filed the return or the due date of the return to examine it and assess additional tax. For example, if you filed your 2016 tax return on March 15, 2017, then the IRS had until April 15, 2020 to examine the return. If you extended the 2016 tax return to October 15, 2017 and filed by that date, then the IRS has until October 15, 2020 to pick it for examination. Pretty soon most taxpayers can throw away the 2016 supporting documents.

Emailing Tax Returns over the Internet

Whenever I send you an electronic copy of your tax return, I use ahead pdf encrypt software to send it encrypted. I can easily set up a password so you can open the file on your end. This can work both ways. You might consider sending me confidential files using software that will encrypt it so that it remains private if you don't want to mail to me or drop it off at my office. I paid $25 several years ago for this software and that is the only cost. There are no annual fees or update charges.

Temporary Tax Breaks Revived for 2020 and Retroactive to 2018

Congress has given us back some tax breaks that had expired. They include the following:
1. Tuition and fees deduction
2. Medical expenses threshold at 7.5% instead of 10%
3. $2 million exclusion for the cancellation of residence mortgage debt
4. Mortgage insurance premium deduction
If any of these apply to you for 2018 and 2019, you would have to file an amended return to take advantage of them if you have already filed.

Kiddie Tax up to age 23

For 2020, investment income such as dividends, interest, and capital gains over $2,200 will be taxed at the parent's marginal tax rate again. Children's income was taxed at trust rates for 2018 and 2019, but the change in the law which happened on 12/20/2019 is retroactive to 2018. You may have to file an amended return to take advantage of this change if it is beneficial to your situation.