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New Electronic Tax Return Delivery

System

As part of our effort to create a better client experience and streamline the e-signing and tax delivery process, DDK will now be using SafeSend Returns. SafeSend is a secure and easy program that allows our clients to receive, review, and e-sign their tax returns from their computer, tablet, and smartphone.

Easy 5-Step Electronic Tax Return Delivery Process

  1. You will receive an email from noreply@safesendreturns.com. The DDK logo will appear in this email. 
  2. Click on the secure access link contained in the e-mail.
  3. Verify your identity by entering the last four digits of your Social Security number.
  4. Check your email for a unique Access Code. If you don’t see it in your inbox, check your spam or junk folders.
  5. Congratulations! You now have access to your tax return. SafeSend Returns will walk you through the review and e-signature process with step-by-step instructions.

Video Walkthroughs of the Delivery Process:

Individual Client Tax Return Help

 

Entity Client Tax Return Help

  

Common Questions About our Tax Delivery System

Q: Is it safe to enter part of my Social Security Number?

A: Yes. SafeSend Returns offers a secure system to view and sign your e-file authorization form(s). Look for https:// at the beginning of the site URL and a locked padlock symbol in your browser’s URL bar to confirm you are on the secure site.

Q: What if I don’t receive an email with my access code?

A: Check your spam/junk email folder. You can also search your email for noreply@safesendreturns.com.      Some email clients hide items they’ve labeled spam or junk, making certain emails difficult to find. If you do not receive your code within the 10-minute time limit, please request another code.

Q: Will this work on any internet-connected device? Does SafeSend Returns offer an app for my smartphone?

A: There is currently no SafeSend Returns app available, but the signature process can be completed on any computer, smartphone or tablet via a web browser.

Q: I’d rather print and sign my e-file authorization form(s). Can I do that?

A: Yes - You can still print, sign and mail your e-file form(s) back to DDK if you’d prefer to do so.

Q: Will I have to print and mail anything to the government?

A: The only items you may need to print and mail out to government authorities is the tax and estimate payment vouchers. If forms need to be printed and mailed, you will receive clear instructions. You will also be provided options to make tax payments electronically if you prefer not to mail payments.

Q: My Spouse and I are filing our return jointly – How can we both sign the e-file authorization form(s)?

A: There are a couple of options:

If both spouses have an email address on file, both will receive an email with a link to view the return and sign the e-file authorization form(s). First, one spouse will receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s), and an email link will be sent to the second spouse. The second spouse will answer identity verification questions specific to him/her, then sign the form(s).

If only one spouse has an email address on file, that spouse will first receive the link with identity verification questions specific to him/her. He or she will sign the e-file authorization form(s) and then enter an email address for the second spouse. The second spouse will then receive the email link with identity verification questions specific to him/her. Once the second spouse electronically signs the e-file authorization form(s), DDK will be notified that signing is complete.

If a couple shares an email address, the primary signer will first receive a link with identity verification questions specific to him/her. After the primary signer signs the e-file authorization form(s), he/she can then enter the shared email address again. A new link will be sent with identity verification questions specific to the second spouse.

Q: Where do the identity verification questions come from? What if I don’t remember the answers?

A: The questions SafeSend Returns asks are knowledge-based questions pulled from government and credit sources. You may be asked questions such as where you lived in a given year, or when you bought your car or home. In the event the questions do not apply to you, simply choose the answer that accurately reflects this. If you don’t remember the answers to the questions, or you answer incorrectly, you won't be able to electronically sign your e-file authorization form(s). You can instead print, sign and return your e-file authorization form(s) to DDK.

Q: How is this process different from e-filing?

A: SafeSend Returns allows you to electronically sign your e-file authorization form(s), but it won't submit your return to the IRS. Once signed, DDK is automatically notified, and we will then complete the filing process for you, including submission to the IRS.

Q: Can I sign my dependent's individual return electronically?

A: DDK will deliver your dependent’s return using SafeSend Returns. However, some dependents may not have sufficient government and financial data available to successfully complete the electronic signature process. If there is not enough data available, your dependent will be given the option to download and sign their forms.

Q: Can I set up reminders for my quarterly estimated payment?

A: If estimated payments are included in your review copy, you will automatically receive an email reminder seven days before your payment is due.

Q: Will I receive a notification when my individual return is ready to sign?

A: Yes. Email notifications will be sent from DDK at noreply@safesendreturns.com. We recommend adding this email address to your safe list to prevent the email from getting filtered to spam/junk.

Q: After signing my individual e-file authorization form(s), will I receive confirmation that it was successfully submitted?

A: Yes, once you sign your e-file authorization form(s), you will receive an email stating it was successful. The email will also include a link to download a copy of your tax return for your records.

Does your business have employees who get tips? You may qualify for a tax credit

If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income.

Credit fundamentals

The FICA credit applies to tips that your staff members receive from customers when they buy food and beverages. It doesn’t matter if the food and beverages are consumed on or off the premises. Although tips are paid by customers, for FICA purposes, they’re treated as if you paid them to your employees.

As you know, your employees are required to report their tips to you. You must:

  • Withhold and remit the employee’s share of FICA taxes, and
  • Pay the employer’s share of those taxes.

How the credit is claimed

You claim the credit as part of the general business credit. It’s equal to the employer’s share of FICA taxes paid on tip income in excess of what’s needed to bring your employee’s wages up to $5.15 per hour. In other words, no credit is available to the extent the tip income just brings the employee up to the $5.15-per-hour level, calculated monthly. If you pay each employee at least $5.15 an hour (excluding tips), you don’t have to be concerned with this calculation.

Note: A 2007 tax law froze the per-hour amount at $5.15, which was the amount of the federal minimum wage at that time. The minimum wage is now $7.25 per hour but the amount for credit computation purposes remains $5.15.

Let’s look at an example

Let’s say a server works at your restaurant. She is paid $2.13 an hour plus tips. During the month, she works 160 hours for $340.80 and receives $2,000 in cash tips which she reports to you.

The server’s $2.13-an-hour rate is below the $5.15 rate by $3.02 an hour. Thus, for the 160 hours worked, she is below the $5.15 rate by $483.20 (160 times $3.02). For the server, therefore, the first $483.20 of tip income just brings her up to the minimum rate. The rest of the tip income is $1,516.80 ($2,000 minus $483.20). As the server’s employer, you pay FICA taxes at the rate of 7.65% for her. Therefore, your employer credit is $116.03 for the month: $1,516.80 times 7.65%.

While the employer’s share of FICA taxes is generally deductible, the FICA taxes paid with respect to tip income used to determine the credit can’t be deducted, because that would amount to a double benefit. However, you can elect not to take the credit, in which case you can claim the deduction.

Get the credit you deserve

If your business pays FICA taxes on tip income paid to your employees, the tip tax credit may be valuable to you. Other rules may apply. Contact us if you have any questions.

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