Sharrett Bookkeeping & Tax

09/01/2026

Beautiful site

08/30/2026

Last week I posted about FIRSTS. This week I thought I would post about LASTs. For the most part no one can ever know when their last day on earth will be. It is good to be prepared.

I have ben called more than 20 times this year by surviving spouses or relatives that are taking care of the taxes for their loved ones that have passed. Some calls have come on the same day as the passing. Although I am honoured and sad to get the call, I appreciate they want to make sure they know what to do.

A lot of things need to be done before passing. Make sure you are signatory on your loved ones accounts; make sure you know where their Trust and Will are; make sure you have access to their online accounts and bills; do you have keys to the safe mty deposit box or know the combination to the safe; do you know where the title for the cars or house are; what life insurance policies are written; do you know who their financial advisor is; who is the attorney who prepared their will and trust; who prepares their taxes; do you have a POA for medical and fidicuary items. The list can go on.

Here are some items you need to consider. This is NOT an exhaustive list.

MaKe sure SSA (if not done by the Mortuary) is notified;
Make sure you get a CMA or BPO for the value of their house;
Contact the lawyer;
Contact their tax preprer;
Contact their Financial Advisor;
Contact their bank.

This list can go on as well..

Some items you might delay depending on what authorizations you have.

All people that were involved in the life of the deceased are happy to help, or should be, during the time of passing. Use them as they aemre aware of your loved ones past.

08/22/2026

Life is full of Firsts.
First Child born.
First Steps
First Words
First Team Sporting event
First Day of School
First Crush
First Day at Work

First Tax Return

All of these, and many more, FIRSTs are important in one degree or another.

I got home for the weekend and to work a couple of days remotely. Today I went to the FIRST Football (Soccer) game of our eldest grandson. ( #4).

He was excited. His parents, His MorMor and MorFar (Mom's Mom & Mom's Dad) and his friend who is on the same team.

Axel's mom talked with him in the weeks leading up to the game. I got to talk with him last night. His coaches talked with him (and the rest of the team) this AM.

Who is your Tax Coach?

When we get new filers (usually from generational referrals) we take the time to talk with them. Why are they paying? Do they need to withhold until they are making more money? Tax savings (IRA and other tax saving mechanisms). It is a great teaching experience for them. I really appreciate it when their parents are present as well as they smile because they have talked with their kids in the same manner but since it is coming from a Tax Professional then it is a differnet chat.

We appreciate our young and old and everyone in between clients.

08/16/2026

1% payout Update. Many people ask us and I usually say you need to ask your lawyers but I am putting an update here for all based on discussions this week.

I talked with a couple of the lawyers late in the week as I needed some documents from them. We talked about AB2700 and the 1% payout.

As we all know the 1% was waiting on the remaining lawsuits by third party individuals or businesses. The payments were made late June and now the remaining funds can be distributed.

The lawyers indicated that although there was hope it would be before Summer was over but now it appears it will be this Fall.

So the monies are coming. At Sharrett Bookkeeping & Tax we will properly calculate the taxable part of the 1% to ensure you have minimal tax impact to you for 2026 based on HR 5366.

This is NOT an official announcement on behalf of the Trust. Providing as an informational update only.

08/12/2026

Received a letter from the Franchise Tax Board recently wanting to verify your 2025 Income Tax Filing.

You are NOT ALONE!!!!

An Error caused a very large number of notices to be sent out un-necessarily to CA residents asking to verify if the return they filed was actually theirs.

I found this out today calling in for an elderly client. The agent explained "I have good news and annoying news" and went on to explain what happened. They caught the error but not before many letters were already with the USPS!!!

Good news....most of those refunds have been processed now and are arriving in the banks or mailboxes (if you still choose to do that).

Never a dull moment with taxes!!!

07/21/2026

So I just can't get away from Cal Fire folks. I came home for a week to celebrate 37 years married to the best lady in the world and went swimming tonight woth the Grandkids. Before swimming we stopped at a burger joint you all know and there were 10 CalFire members and then another group of 20 came in. Thank you CalFire for supporting our Utah firefighting teams. We love you.

07/19/2026

IRS Announced a great change late last week.

Many of you have heard of and benefited from a "First Time Abatement" or FTA. This is the process wherein you have been assessed Penalties (Failure to Pay or Failure to File for most people and for businesses Failure to Deposit). This was a process that a taxpayer had to REQUEST relief, either via a form or on the phone.

IRS Announced a new program, phasing in now, called "Automatic Exemption from Penalty" or AEP. With this program neither you, the taxpayer, nor the tax preparer has to do anything. The AEP is being phased in and applies to Individual (1040s) filed in 2025 and will be used for Businesses in the 2026 calendar year.

This new program is supposed to be in place completely for the 2026 filings (due in 2027). Here is a link to the IRS press release.

For those that have submitted an FTA (843) let it process but know that this program will allow for easier processing (our hope - wink wink).

https://www.irs.gov/payments/administrative-penalty-relief

As with the FTA there are conditions that apply.

Individuals have to have filed a timely return for the same type of return (for example, a 1040 form), if required to do so

and

either no IRS penalties were assessed against you (other than an estimated tax penalty), or any penalties against you were waived for reasonable cause or an IRS mistake.

For Businesses facing a failure-to-deposit penalty, AEP relief will only be granted if the:

IRS's didn't waive a failure-to-deposit penalty four or more times during the previous three years (or 12 consecutive quarters) or

penalty being waived wasn't for Electronic Federal Tax Payment System avoidance.

Have a great rest of the Month!!!

Learn about penalty relief and if you qualify for relief from a penalty by administrative waiver.

07/16/2026

Thank you CalFire for fast action. Nice bomber drop after teo passes.

07/16/2026

For years our family has participated in a program called "Scarves in the Park" in the Salt Lake area. One of our wonderful clients has a great talent and donated a whole box of homemade love (beanies and scarves) for the cause. Thank you KH for donating time and materials for this cause. I am thankful to take a suitcase full (see the big box) of items back with me.

Note: I am not a professional model. ;)

https://www.ksl.com/article/news/utah/high-5-keeping-homeless-utahns-warm---one-scarf-at-a-time/51540871

07/16/2026

It's taken 18 months but they are blooming and nice. Thanks to Cindy Dawson @ Deja Vu Nursery!!