Colorado’s Taxpayer’s Bill of Rights (TABOR) Amendment, passed by voters in 1992, restricts the amount of revenue state and local governments can collect and spend without voter approval. When revenue exceeds the limit, TABOR mandates that the excess be refunded to taxpayers—unless voters approve a different use for the surplus.

TABOR Refund Issues: What to Do if Your Claim Was Denied
Recently, some taxpayers who were eligible for their TABOR refunds have had their claims denied by the Colorado Department of Revenue. If you are one of these individuals, don’t worry — please provide us with the notice. We will help you determine whether the denial is accurate and assist in rectifying the issue if it was in error.

Eligibility for the 2023 TABOR Refund
To be eligible for the TABOR refund when filing your 2023 return, you must have met the following requirements:

File a 2023 DR 0104 by April 15, 2024, if you:

• Were at least 18 years old when the tax year began,
• Do not have a Colorado income tax liability,
• Are not claiming a refund of wage withholding, and
• Are not otherwise required to file a Colorado return because you have no federal filing requirement.

​File a 2023 DR 0104 by October 15, 2024, if you:

• Have a Colorado income tax liability,
• Claim a refund of wage withholding, or
• Are required to file a Colorado return because you are required to file a federal return (this is what we’re noticing is getting overlooked).

Looking Ahead: 2025 TABOR Refunds
For 2025, Colorado collected an excess of $1.4 billion in revenue, which will be refunded to taxpayers. The Colorado Legislative Council estimates that these refunds will range from $181 to $1,142, depending on income levels and filing status.

There has been ongoing discussion about potentially reducing tax rates as part of the refund process, but so far, none of these conversations have resulted in concrete action.

In summary, if you have experienced a denial of your refund, remember to pass along any notices to us so we can assist you in resolving the issue. As we look ahead to 2025, taxpayers can anticipate another round of TABOR refunds, with refund amounts dependent on individual income levels and filing status.

For any questions or to seek assistance with your TABOR refund, feel free to reach out to us. We’re here to help guide you through the process.

As we move forward, it's important to set clear expectations and educate you about the current state of the accounting industry. According to the American Institute of Certified Public Accountants (AICPA), from 2016 to 2021, there has been a 33% decline in first-time candidates taking the CPA exam. Additionally, 75% of CPAs are at or nearing retirement age. Consequently, there has been a collective 17% decline in the number of accountants in the U.S.
Given these challenges, we want to inform you about the steps Cornbelt Financial is taking to address the challenges that our industry is presented with. Here are the key areas we are focusing on:

Simple Economics: Increased Demand and Rising Prices
With the decline in the number of accountants, demand for accounting services (and staff) now exceeds supply. As a result, prices for accounting services are increasing across the industry. It's important to understand that this is a widespread trend affecting all firms, not just ours. We are committed to maintaining fair pricing while ensuring we can continue to offer the high-quality services you expect.

Leveraging Technology: Enhancing Efficiency and Client Experience
In response to these industry changes, we have invested heavily in deploying a robust operating system in Canopy. This technology enhances our efficiency and helps streamline processes. We encourage all our clients to follow the processes, read instructions carefully, and use the tools and systems we have made available. By doing so, you help us serve you more effectively and ensure a smoother experience for everyone.

Identifying and Developing New Talent
We are actively addressing the talent shortage by identifying and developing new talent. We are excited to welcome Joven Nelson, who has been interning with us since 2020, as a full-time team member. Additionally, we have hired Sam Billman as an intern this summer, who will graduate in 2025. Investing in the next generation of accountants ensures that we have the skilled professionals needed to continue serving you in the future.

Seeking Remote Talent: Expanding Our Talent Pool
To adapt to the changing landscape, we also seek remote talent. This approach allows us to access a broader talent pool and ensures we have the expertise required to meet your needs. By embracing remote work, we can attract top talent from across the country, further strengthening our team and enhancing our ability to serve you.

How You Can Help
Your cooperation and understanding are essential as we navigate these industry challenges together. Here are a few ways you can help us continue providing you with exceptional service:

1. Timely Document Submission: Submit your tax documents early and completely. Utilize our client portal and check your inbox for notifications from [email protected] & [email protected]. Please also review our new service schedule for additional information. 
2. Use Available Tools and Resources: Follow the processes, read instructions, and use the tools and systems we have provided. This will help us serve you more efficiently and ensure a smoother experience for everyone.
3. Proactive Tax Planning: Engage in off-season tax planning to optimize your tax outcomes and gain insight into what can be expected in the next tax season.
4. Stay Informed: Keep up-to-date with our communications and updates. This will help you stay informed about any changes and ensure you are aware of what we need from you.
5. Be Patient: We generally operate on a first in first out (FIFO) basis addressing deliverables, projects, and requests as they come to us. However, certain tasks take priority over others as we’re working with deadlines every month.  

We are committed to adapting and evolving to meet the challenges of the current accounting industry landscape. Thank you for your continued trust and cooperation. Together, we can navigate these changes and ensure continued success.

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At Cornbelt Financial, we believe that empowering our clients is key to their success. Our approach goes beyond traditional accounting services; we strive to provide a comprehensive client experience that includes utilizing available tools, timely document submission, proactive tax planning, and embracing our paperless and remote office. By empowering our clients with the right resources and guidance, we aim to create a partnership that fosters success and financial well-being. 

Use of Available Tools, Resources, and Workflows
We have carefully selected and developed tools and workflows that streamline our processes and enhance your experience. By adhering to these preferred methods, you not only benefit from our optimized services but also help us maintain efficiency across the board. Exceptions will become limited as outliers often experience a less-than-preferred experience and distract us from serving clients using the preferred tools and resources. Clients who do not use the recommended tools may experience delays and may be subject to additional fees in the future. Let's work together to ensure a smooth and efficient process for everyone.

Timely Document Submission
One of the key factors in providing timely and accurate tax services is the early and complete submission of your tax documents. Utilize our client portal to upload your documents and check your inbox for system notifications from [email protected]                                                           & [email protected]. This ensures that we can start working on your returns promptly and avoid any last-minute rushes.

Proactive Tax Planning
Engaging in off-season tax planning is crucial for optimizing your tax outcomes and gaining insights into what to expect in the next tax season. By working with us proactively, you can take advantage of strategies that minimize your tax liability and improve your overall financial health.

Paperless and Remote Firm
We are proud to operate as a paperless and remote firm, saving approximately 60,000 pages of paper annually, which is equivalent to about six trees and over 16 tons of carbon by not requiring staff to commute. This commitment to sustainability not only benefits the environment but also enhances our efficiency and reduces overhead costs, allowing us to focus more on serving you.

Essential Requirements for Clients
To ensure a smooth and efficient process, we require the following from our clients:

• An email address for each person (taxpayer, spouse, children 18 and up if filing a return, etc.).
• Acceptance of the engagement online before any work starts. Once accepted, this becomes recurring.
• Ability to submit an organizer online.
• Ability to e-sign documents.
• Ability to view PDFs.
• Ability to upload and download documents to/from our portal.

If you need assistance with any of these items, please identify a person who can help, and we will capture their contact information along with a Disclosure Authorization.

Setup Direct Debit / Deposit for Refunds and Balances Owed
Setting up direct debit for balances owed and direct deposit for refunds simplifies the payment process and ensures timely transactions. This also reduces the risk of errors and delays associated with manual payments.

Update Tax Withholding or Submit Quarterly Estimates Online
To avoid any surprises at tax time, it’s essential to regularly update your tax withholding or submit quarterly estimates. This proactive approach helps manage your cash flow and ensures you stay compliant with tax obligations throughout the year.
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By following these guidelines and utilizing the resources we provide, you can maximize the benefits of our services and ensure a smooth and successful partnership with Cornbelt Financial. We are here to support you every step of the way and help you achieve your financial goals.

At Cornbelt Financial, providing exceptional service means operating on a carefully structured timeline. To set clear expectations and help you plan ahead, we've created a firm calendar highlighting key dates and deadlines. 

While tax season is our busiest period, our work is truly a year-round endeavor. We follow a structured calendar to ensure we can devote the proper time and attention to each client's needs. Maintaining a defined schedule allows us to thoroughly analyze your financial situation, identify opportunities, and deliver accurate, timely results. We'll partner closely with you to align our timelines with your needs, pivoting as circumstances demand. Open communication is key to making this a seamless, stress-free experience every year.

Here's what you need to know about how we'll collaborate smoothly throughout the year. We'll update this on an ongoing basis going forward. 

January 1st - Engagement Renewals & Tax Organizers:

• Deadline: Engagements renew effective January 1st near which time you should have received your tax organizer.
• Why: Submitting the tax organizer annually provides a great resource for clients to compile their tax information and update any information or inform us of any changes.

March 1st - Tax Document Submissions:

• Deadline: Submit your tax documents before early March.
• Why: This timing gives us the best chance to file your returns before the April 15th tax deadline.
• Note: Communication and response times will slow starting around this time until the conclusion of the tax deadline.

April 1st - Extension Estimate Submissions:

• Deadline: Submit your tax documents before April 1st.
• Why: This ensures we can provide an accurate estimate with your extension and going forward at this time our focus will shift to communicating next steps needed with your extensions.
• Note: Buzzer beaters are rare in sports and should be in tax accounting too.

April 15th - April 22nd - Office Closure:

• Status: Offices will be closed or only lightly staffed.
• Why: To give our team a much-needed break after the tax season rush.

April 22nd - Mid-May - Reduced Operations:

• Status: Limited capacity for tax returns and other services.
• Why: We need to catch up on both other services and personal matters. Conferences and vacations are common during the window. 

June - Resumption of Normal Operations:

• Status: Normal operations resume.
• Focus: Late submissions, kick-off of tax planning, and off-season initiatives.

August 1st - Extension Submissions:

• Deadline: Submit documents if you are on extension by August 1st.
• Why: We need time to prepare for the September 15th deadline for S-Corporations and Partnerships and the October 15th deadline for personal returns.
• Note: If you are still missing documents, submit what you have available and we'll coordinate a plan for the remaining missing items. 

Thanksgiving Week - Reduced Operations:

• Status: Reduced staff and slower operations.

December 15th - Year-End Tax Planning:

• Deadline: Request year-end tax planning before December 15th, thereafter we'll have reduced operations. 
• Why: The last couple of weeks in December are reserved for holidays and preparation for the upcoming tax season. Expect to receive tax organizers and announcements during this time.

Tax season can be a hectic time for many individuals and businesses alike. If you find yourself needing more time to gather your tax information and file your returns, don't worry – you're not alone. Filing an extension can provide you with the extra time you need to ensure accuracy and compliance with the tax laws. Here are some common questions and answers about filing a tax extension. 

1. What is an extension?
An extension, in tax terms, refers to the process of filing a Form 4868 with the IRS to request additional time to file your tax return. It provides an automatic 6-month extension beyond the original due date, typically until October 15th. It's important to note that an extension is only for filing your tax return and does not extend the deadline for paying any taxes owed.

2. Does an extension increase my audit risk?
No, filing an extension does not increase your risk of being audited by the IRS. An extension simply gives you more time to complete and submit your tax return accurately. As long as you accurately report your income and deductions, you should not face any additional audit risk.

3. Does it cost to file an extension?
In most cases, Cornbelt Financial may bill clients for filing an extension, particularly for document submissions occurring after June 30th. Additionally, it's important to note that the IRS typically assesses penalties and interest on any taxes paid after the original deadline (typically April 15th). If you anticipate having a balance owed, it's advisable to remit payment online or with your mailed extension to avoid additional penalties and interest.

4. How do I know whether I should submit a payment with my extension?
If you historically receive refunds and nothing has changed with your income or deductions, you can generally feel comfortable that you won't need to remit a payment with your extension. However, if you commonly have a balance due, it's recommended to remit a payment with your extension to minimize penalties and interest (https://www.irs.gov/e-file-providers/paying-your-taxes). If you've experienced significant changes or life events that may impact your tax liability, please complete the tax organizer and provide an explanation of what changed. Upload as much information as you have available, and we can review it to determine an appropriate estimate of tax to pay with the extension.

5. Does my state require an extension?
Most states grant an automatic extension alongside the federal extension. However, some states may have different requirements or deadlines. Regardless, the same principles apply – if you anticipate owing a balance, it's important to remit payment with your state extension to avoid penalties and interest.

Filing a tax extension can provide you with the time and peace of mind needed to ensure your tax returns are accurate and complete. If you have any further questions or need assistance with filing an extension, don't hesitate to reach out to our team. We're here to help guide you through the process and address any concerns you may have.

Discover the ins and outs of Colorado's Electric Vehicle Tax Credit. Aimed at residents of Colorado, this guide provides a comprehensive overview of the state's Innovative Motor Vehicle Credit program. Learn about the purpose and eligibility criteria. Explore the types of entities eligible for the credit and the specific requirements for qualifying vehicles. Whether you're considering going electric or simply curious about Colorado's green initiatives, here is additional information on how it could benefit your taxes. 
Purpose and Eligibility:

• Colorado offers a refundable income tax credit for the purchase or lease (min. 2 year lease) of qualifying motor vehicles.
• Available for new electric and plug-in hybrid electric motor vehicles titled and registered in Colorado.

Eligible Entities:

• Individuals, estates, trusts, C corporations, partnerships, and S corporations.
• Tax-exempt entities and local governments in Colorado (for income tax years from January 1, 2024).

Qualifying Motor Vehicles:

• Four-wheeled electric or plug-in hybrid vehicles with a maximum speed of 55 mph.
• Gross vehicle weight rating (GVWR) of 8,500 pounds or less.
• Propelled significantly by an electric motor.
• Rechargeable battery with a capacity of at least 4 kWh.
• Must be new (first time transferred from manufacturer, importer / dealer with less than 1,500 miles), titled, and registered in Colorado.

Titling and Registration:

• Credits only apply to vehicles titled and registered in Colorado.
• Temporary registration permits are insufficient to satisfy the registration requirement.

Credit Amounts:

• For tax year 2023 (purchases or leases after July 1, 2023) and 2024, the credit is $5,000. For 2025 the credit is reduced to $3,500. 
• No credit for vehicles purchased or leased after June 30, 2023, with an MSRP over $80,000.
• Additional credit of $2,500 for vehicles with an MSRP under $35,000 and an option for advanced payment.
• Additional credit of $600 for assigning the entire allowable credit to a financial entity or motor vehicle dealer.

Credit Assignment:

• Purchasers or lessees can assign credits to financing entities or motor vehicle dealers.
• Compensation for credit assignment must be made in cash or similar considerations.
• The motor vehicle purchaser or lessee and the financing entity must complete and sign an election statement (form DR 0618) to assign the credit. The election statement must be completed at the time of the purchase or lease.

Claiming the Credit:

• Claimed on the Colorado income tax return for the tax year in which the purchase or lease occurred on form DR 0617.
• Excess credit may be refunded if it exceeds the taxpayer's tax liability for the year.

Estimated Tax Payments:

• Taxpayers can consider the credit in calculating estimated payments for the tax year.

Navigating the electric vehicle tax credit involves understanding filing procedures and changes effective from 2024. Whether claiming the credit on your tax return or transferring it to the dealer, staying informed ensures a smooth process. As always, consult with us for personalized guidance based on your unique circumstances.

*Note: The information provided is based on the latest details as of 02/05/2024. Tax laws are subject to change, and it's essential to stay informed about any updates.

As we kick off the new year, tax season is in full swing. We sincerely hope your year has been off to a fantastic start. Here at Cornbelt Financial, we're dedicated to making your tax filing process smooth and stress-free.

By now, most of you should have received the majority of your tax documents from various sources. We encourage our current clients to take a proactive approach and upload all available documents to our secure portal as soon as possible. If you are looking for support on your taxes this year and are not yet a Cornbelt Financial client, please reach out to us today and we would be happy to discuss options with you. This proactive step will help us stay ahead of the tax deadline and avoid any last-minute chaos.

Current Cornbelt Financial Clients: 
Action Required:
If you haven't already, keep an eye out for our engagement letter and client portal invites from the following email addresses:

• [email protected]
• [email protected]

If you haven't received these emails, we recommend checking both your inbox and spam folder. Adding these email addresses to your contacts will ensure that our system-generated emails make it safely to your inbox, keeping you informed every step of the way.

Why Upload Early?
Uploading your documents early allows us to review your information thoroughly, identify any missing pieces, and provide you with timely guidance and support. By working together proactively, we can minimize both yours and ours stress, provide a better experience for you, and minimize any potential issues.

Need Assistance?
If you encounter any difficulties or have questions about the uploading process, please don't hesitate to reach out to our team. We're here to assist you every step of the way and ensure that your tax filing experience is as seamless as possible.

Thank you for entrusting Cornbelt Financial with your tax needs. We appreciate your continued partnership and look forward to helping you achieve your financial goals in the year ahead.