2021 Tax Engagements and Questionnaires

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#1
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I need to get my butt moving on 2021 tax engagements and questionnaires. CNA/AICPA has not yet released 2021 engagement templates to see what they suggest, but my key focus is on questionnaires. What are you intending to add for 2021 tax engagements, mandatory questions to be answered by clients, etc.? Please try to sort by entity type in your response...

Individuals:

-EIP3 details
-Details on advanced CTC payments received

Business entities:

-Status of PPPL #1 forgiveness
-Did they obtain PPPL #2 and if so, date, amount, and if forgiveness has been applied for and granted
-If any additional EIDL was received (from when they offered increases this past spring)

That's just what is in my head. I am taking tax CPE for three days this week and imagine it'll trigger more. This proved helpful last year so let's try to repeat it...
 

#2
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Off of the top of my head, items that are outside our normal questionnaires (CCH generated) and that we didn't help the client with...

Individuals
- Did you have any transactions with or in cryptocurrency, and if so, please describe. I'm going to ask more as it seems like there was a huge amount of investment in the space after the EIPs.

Businesses
- Did you receive any government related incentives, tax breaks or grants. Such as the PPP, employee retention credit, EIDL loans, state level loans/grants, etc. If so, please list the program, amount and what the status is of it (such as are you waiting on applying for them, waiting on receipt of the funds after applying, waiting on receiving forgiveness after application), as the different programs have different tax impacts.
 

#3
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I did add additional questions about crypto...I kind of want clients to answer it in a couple of different areas and the wording is different.

There was another question I did the same thing to since I think I am being lied to about it year after year by clients, but I cannot recall which one. I'll post it here once I start reviewing the questionnaires again for all entities. Trying to simplify but seems impossible.
 

#4
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I'll have responses to this after the AICPA releases their 2021 engagement letter and organizer templates. I'm getting antsy and expect the engagement letter templates to be released any day now.

I usually add to both. For 2021 I am planning to add questions to the 1040 organizer regarding Solo 401(k)s (due to the 5500-EZ obligation) and online sports betting/gambling, which I've anecdotally noticed is a lot more prevalent during and in the wake of the pandemic. Got to spend those EIPs one way or another...

Obvious additions are questions surrounding EIP 3 and the advance CTC payments.
 

#5
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Looks like 2021 has been released at AICPA...time to begin reviewing all of this crap and making changes!
 

#6
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There weren't a lot of major changes this year for me.

In addition to what's already been mentioned, I made the following changes for 2021:

--Added question: if there were any updates in a client, spouse's or dependent's US citizenship/visa status during the year. A fair amount of my clients (or their spouses) are not citizens but resident aliens and I want to stay more on top of this year-to-year as a C.Y.A.
--Added 2-3 questions regarding self-employed retirement accounts, including SEP-IRAs and Solo 401(k)s. The AICPA templates don't ask any questions in this area surprisingly.
--Added extension payments wording to my question regarding if estimates were made so that it now asks about both estimate and extension payments. This wasn't a big problem in the past, but I do onboard clients after 4/15 every year for extension filings and I wanted to make it clear that they need to provide extension payments too.
--Updated wording to several questions.
--Added a question about gambling income in general and specifically online gambling income. It's my understanding online sports gambling has grown quite a bit in recent years.
--Added detail to my cancellation of indebtedness question that they should not answer the question yes if student loans were merely paused or postponed. Bumper guards...getting out ahead of this inefficiency.
--Changed wording of VC question from if they sold "virtual currency" to if they sold "virtual currency/cyrptocurrency or nonfungible tokens".
--Removed my ABLE account distribution question and just added IRS Form 1099-QA to the list of forms they need to upload if they received them. Trying to also take away questions that don't apply to the overwhelming majority my clients if I can do it in a way that won't affect accuracy of the organizer and uploaded docs.

I am about 90% done with the template. Just have to update the instructions a little, then proofread. Then create the online template which will be a task. I might leave the latter for tomorrow...

Going to take a break and run to the liquor store for a bottle of bourbon... We've been in the 60s/70s each day for 2 weeks here. It's plummeting down into the low 30s tonight. Need something to warm my chest a little bit.
 

#7
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I decided to only drink on weekends this month...I am already regretting that decision as I still work out preparing for 2021 taxes.
 

#8
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CornerstoneCPA wrote:I decided to only drink on weekends this month...


I decided to drink only bourbon, whiskey or vodka this month. No beer for me.

It's part of my get fit for summer 2022 plan.
 

#9
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ManVsTax wrote:
CornerstoneCPA wrote:I decided to only drink on weekends this month...


I decided to drink only bourbon, whiskey or vodka this month. No beer for me.

It's part of my get fit for summer 2022 plan.


Bold strategy.
I usually have a similar plan, but spelled slightly differently. I call it my "Get Lit for Summer" plan. :lol:
~Captcook
 

#10
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ManVsTax wrote:
I decided to drink only bourbon, whiskey or vodka this month. No beer for me.

It's part of my get fit for summer 2022 plan.


I like your plan better. I rarely drink beer unless I am at certain restaurants or breweries. My one "bad drink" is gin & tonic, which is loaded with sugar because of the tonic despite being bitter. Otherwise, vodka or rum with Bubbly...occasionally a bit of Macallen 18, or a bourbon bramble. Have a huge wine collection and don't even drink that much wine.

Last year was stressful as hell. Between stress and travel, I am 30 lbs heavier than my ideal weight. Gotta get off my butt and move more, but I'm throwing in drinking on weekends only unless a few unique situations arise. Seriously thinking of making a strict policy that I am also not going to work Fridays.

Back to questionnaires...
 

#11
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2020 and 2021 were pretty stressful.

I'm also heavier than I'd like to be (thanks to the past 24 months), but the only cure for that is diet, exercise and the greatest hits of Elton John played on repeat.

I'm thinking of going MIA and not checking work email every Sunday during busy season. Might also force myself to go fishing too. I think my mental and physical health will both benefit.
 

#12
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Macallan 18 in the red oak is my top choice for scotch.

Happy to have finished my questionnaires this morning. Good luck!
~Captcook
 

#13
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I've been bad...have had alcohol every single day this week. So much for my resolution.

I am so behind this year, just like 2021. Except now I am also having to record videos to show clients how to utilize TaxDome, modify engagement letters, create questionnaires, etc. And now I am headed BACK to Michigan next week for another work trip...I just got back from MI on Sunday from 16 days of pleasure! This trip will definitely involve me sitting in a hotel doing work when I have time...
 


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