Simplify Your Taxes with Trusted Experts Accurate, stress-free tax preparation for individuals and businesses. Get Started Learn More Looking for Financial Planning Help? Our values-based retirement planning will give you the quiet confidence that everything is on track for you to achieve your life goals. Get Started Learn More Run your business, we'll handle your finances. Small business owner? Yes, we can help you with your tax, bookkeeping and payroll needs. But there is so much more to having the right financial partner. Get Started Learn More

Find the Best Package for Your Needs Pa Package offering Monthly Accounting Services Allocation of business transactions to correct accounts Reconciliation of bank statements Preparation of monthly Profit & Loss statement Preparation of monthly Balance Sheet statement Annual Corporate Tax Return preparation (Partnership or Corp) Annual Report preparation and submission to Secretary of State Officer Compensation Analysis Quarterly estimated tax payments Monthly Payroll Federal 941 Quarterly Payroll Filing State Quarterly Payroll Filing Year-End 940 Payroll Filing W-2 Issuance to Employees 1099 Issuance to Independent Contractors Client Portal Access Determination of federal and state tax notices Quarterly Conference Call Estimated and Revised Annual P&L Adjustments to Officer Compensation Misc. Business and Accounting Issues Personal 1040 Return Preparation Financial Planning Services Values & Vision Family Strategic Plan Cash Flow & Budget Planning Distribution Planning Employee Benefits Planning Key Employee Compensation Planning Personal Financial Statements Social Security Claiming Strategy Lifetime Tax Minimization Planning Tax Projections Bookkeeping Bronze Gold Platinum Platinum Plus MONTHLY PRICE Starting At $150 Starting At $200 Starting At $300 Starting At $400 Starting At $500 Schedule a Meeting

File Online File online File your taxes online form your home. Upload your documents, and get started. Schedule a Meeting Schedule An Appointment Need additional tax help? Schedule an appointment to get started. Get your tax return started at Monotelo Step 1: Upload you documents, or schedule an appointment. Step 2: One of our experienced tax professionals will process your return, and maximize your refund. Step 3: Once your return is complete, we will contact you to sign the consent forms. Step 4: After signing the consent forms, you should receive your tax refund in 1-3 weeks. How the process works. Get started Have tax questions, or need more information? Schedule an appointment Give us a call One of our experienced tax experts would be happy to answer your questions, and get your tax return started Helpful tax tips and articles. Tax Season Checklist Three Reasons to File Early Year-End Tax Planning View More More services from Monotelo Small Business Tax Services We will help you minimize your short-term and lifetime tax liability to free up the cashflow needed to help you grow your business and build for your future. Learn more Retirement Planning Our Values-Based planning service will build the road map so you can have confidence that all the pieces of the puzzle are working together for you to live your best life possible. Learn more

SMALL BUSINESS TIPS PANDEMIC PROVISION FOR TAX-FREE PAYMENTS TO YOUR EMPLOYEES During a federally declared disaster, such as the COVID-19 pandemic, the tax code allows you to make payments to your employees that are deductible by you, the employer, but not taxable to your employees. If your business is an S-Corporation then you qualify as an employee of the business eligible for these tax-free payments . This provision provides a great limited-time opportunity to pull money out of your business tax-free! These tax-free payments are a provision of Section 139 of the Internal Revenue Code which was passed following the September 11th terrorist attacks. How Does it Work? Normally, payments of cash to your employees are considered taxable income to them by the IRS unless it is to reimburse them for qualified business expenses. Under this provision for disaster relief payments you can reimburse your employees for personal expenses that are incurred because of the disaster as long as they are reasonable and necessary. For the COVID-19 pandemic this can include: Out-of-pocket medical costs not covered by health insurance Expenses for working from home such as a computer, office equipment, supplies & utilities Funeral costs for an employee or an employee’s family member Childcare costs so that your employees can continue to work while children are home from school These are the most common costs that could be reimbursed, but others may qualify for the same tax-free reimbursement if they are reasonable and incurred because of the pandemic. What Does not Qualify? You cannot use this provision as a substitute for your employee’s wages to provide them with tax-free income. In other words, do not reduce an employee’s wages by $1,000 and then reimburse them for a $1,000 medical expense. You can also not reimburse employees for lost wages, or as a form of unemployment compensation. What Should You Do? To take advantage of these tax-free disaster relief payments to your employees we recommend that you put together a written plan for payments that identifies: Starting and ending dates of the program A listing of the expenses you will pay or reimburse The maximum payment per employee A procedure for your employees to request reimbursement We would advise using a form similar to an employee expense report for your employees to request their disaster relief payments. To make things a bit easier, the IRS does not require that your employees provide documentation to support the expenses claimed as long as the amounts are reasonable. Summary With COVID-19 declared a federal disaster, you can take advantage of the disaster relief payment provision of the Internal Revenue Code to provide tax-free payments to your employees to cover their personal expenses that were incurred because of the pandemic. If your business is structured as an S-Corporation you as the owner are considered an employee and can reimburse your personal expenses with tax-free payments from the business. If you would like help determining what expenses are eligible for disaster relief payments or would like guidance on implementing this program for your employees please reach out to us.

See below for a few simple tips that you can apply to align all your financial decisions with your most deeply held values and life goals to help you live the best life possible. A Great Planning Tool: Health Savings Accounts How the Revised Child Tax Credit Will Impact Your 2021 Tax Return Managing Your Healthcare Costs in Retirement Tax Implications of the American Jobs Plan The American Rescue Plan Act Three Reasons to File Your Taxes Early The Tax Implications of Your Side Hustle Year-End Tax Planning The High Risk of Owning Bonds Today Financial Planning Check Up Social Security Tax Deferral Economic Impact Payments From The CARES Act What Expenses Are Deductible In 2019? What You Should Know About The SECURE Act Roth vs. Traditional IRA: Which One Is Right For You? Year-End Tax Planning Strategies Avoid Surprises On Your 2019 Tax Return What Will Happen When Social Security Runs Out? Six Myths About Health Savings Accounts. The Impact of Your Pension On Your Social Security Benefits Five Things That Every IRA Owner Should Know The Impact of the Tax Cuts and Jobs Act What Triggers The IRS? 10 Flags that Could Signal an Audit Tax Consequences of Reinvesting Your Mutual Fund Distributions Year-End Review of Your Retirement Accounts Maximizing Your Deductions in Light of Tax Reform Tax Implications of Selling Your Home How to Save for Your Child's College Education Will vs Trust: Which is Right for You? Avoid Surprises on Your 2018 Tax Return Five Changes to Be Aware of Under the 2018 Tax Reform Year-End Tax Planning Strategies Making the Most of Your Charitable Donations How Could the Proposed Tax Reform Affect You? 8 Security Tips in Light of the Equifax Data Breach Tax Tips for Home Sellers "Why Am I Being Selected for An Audit?" 5 Things You Can Do Right Now to Help Improve Your Retirement Years What Parents Need to Know About Back-to-School Expenses Avoid The Hidden Traps of Retirement Plan Loans

September 2019 SMALL BUSINESS TIPS Quarterly: Oct 17 How Will Your Real-Estate Sale Be Taxed? When you sell real estate property other than your primary residence, the tax implications of that sale depend on whether it qualifies as dealer or investor property. Each of these classifications is taxed differently and carries its own benefits and drawbacks. Dealer Property: Property you hold for sale to customers in the ordinary course of a trade or business is considered Dealer Property. House flipping is a common example of dealer property because you purchase the property with the intention of fixing it up and selling it for a profit. Profits on dealer sales are taxed at your ordinary income rate which can be as high as 37 percent and are also subject to the self-employment tax of 15.3 percent. Dealer sales cannot be used in 1031 exchanges to defer taxes by reinvesting in another property. One advantage of dealer sales is that any losses on a property are considered ordinary business losses which can be fully deducted in the year of the sale as opposed to capital losses on investment property which are limited to $3,000 per year. Investor Property: Property that is held to produce income or long-term appreciation is considered Investor Property. Rental properties are the most common type of investor properties. Profits on investor sales are taxed at capital gains rates which are capped at 20 percent if you own the property for more than one year. Investor property sales are also not subject to the 15.3 percent self-employment tax. The cost of investor properties can also be depreciated over the useful life of the property, although the depreciated cost will need to be recaptured at the time of the sale. Investor properties qualify for 1031 exchanges which allow you to reinvest the profits from the property into a similar property and defer the taxes on the sale until you sell the new property. One disadvantage of investor property sales is that the deduction for capital losses is capped at $3,000 per year unless you have capital gains from another sale to offset the losses. Generally speaking, if you sell a property at a gain you will receive favorable tax treatment if the property is classified as investor property and if you sell a property at a loss you will receive favorable tax treatment if it is classified as dealer property. Classifying Your Property Sale Identifying the correct property classification is not as simple as determining which will give you better tax treatment. In classifying your property sale the IRS will look at multiple attributes of the individual sale and your overall situation: Intent: One key area the IRS will look at when classifying your property sale is your original intent in purchasing the property. If you purchase a property with the intent of fixing it up and reselling for a profit, then that property is considered dealer property. If you buy a property with the intention of fixing it up to operate as a rental property it will be considered investment property. Even if you sell the property before collecting any rent you can classify it as an investment property if you can demonstrate that your original intent was for it to be a rental property. Documenting your intent at the point of purchase is critical to defend your position before the IRS. Holding period: Generally speaking, the less time you own a property before selling it the greater the chance the IRS will classify the property as a dealer property. Frequency of property sales: If you are regularly buying and selling properties you are likely to be classified as a dealer. “Making a Living:” If a significant portion of your income is made through buying and selling properties you are more likely to be classified as a dealer. These attributes are examples of what the IRS looks at to classify your property sale but not a definitive list. There is no standard formula to follow and you need to evaluate the characteristics of each property sale on its own. Understanding the distinction between a dealer and investor property can help you avoid surprises in tax season. Proper planning and record-keeping can also ensure that you receive the best tax treatment available to you when you sell your property. For help determining how your property sale should be classified, please reach out to us. Previous Article

We Understand We understand the feelings of excitement and camaraderie firefighters get when you finish a good call. We understand the lifelong commitment you have made to staying physically fit and mentally sharp for anything that comes your way. Our monthly publication shares tips and strategies to reduce your federal and state tax liabilities. Tax Tips and Strategies Use our tax season checklist to make sure you have everything needed to file an accurate return while maximizing your potential deductions. Learn More Tax Season Checklist Get Started with Monotelo Start your free review of your past three years of tax returns Testimonials Hear what our public servants have to say about their Monotelo experience.

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JULY 2016 MONOTELO QUARTERLY ARE YOU PROTECTING YOURSELF From Your Corporate Income? While there are potential tax savings with a corporate structure in place, it is critical that the corporation be the entity that actually earned the income. WHAT DOES THAT MEAN? A fundamental principle of tax law is that income is taxed to the entity who earns it; and any attempts to divert the income away from its true earner are not recognized by the IRS. AND WHAT DOES THAT MEAN? It means the corporation (not the business owner) must be the entity that contracts for the services that it will have you (the business owner) provide. It means the corporation needs to be the entity that gets paid (not the business owner) for the services provided. It means the corporation must have control over the income it receives. Once it receives the income, it can then direct it to the business owner via payroll or a shareholder distribution. WHAT ARE THE MAIN TAKEAWAYS HERE? If you have self-employment income, you should consider the potential tax benefits of a corporation At Monotelo, we believe that clients who have self-employment income should consider the potential benefits of structuring their business as a corporation. That is because a corporation can provide asset protection and potential tax benefits that are not available to the self-employed individual who files a Schedule C with their tax return. 1. Have your clients or customers write their check directly to the business. Do not accept checks written to you personally. A check made out to you and signed over to the business puts the business owner at risk of double taxation and penalties. 2. Have the corporation pay you a salary for the services you are providing to the corporation. 3. Make sure that all contracts and agreements with clients are between the client and the corporation, not between the client and the business owner. Save as PDF October 2016

About Us Who We Are Meet The Team Jim Richter, CFP®, CAIA®, EA President 800-961-0298 jim@monotelo.com Jim Richter is the President of Monotelo Advisors. Jim sets the strategic direction for the firm, including oversight of all tax and financial planning services at Monotelo Advisors. He brings 20+ years of experience in the financial services industry, including 10 years of hedge-fund specific work across diverse investment products. Prior to founding Monotelo Advisors, Jim spent 7 years as a Managing Director and Partner at a Chicago-based asset management firm. Prior to his time in the asset management industry, Jim spent 9 years as a fixed-income specialist in the banking industry. Jim is a CERTIFIED FINANCIAL PLANNER™ and Chartered Alternative Investment Analyst with a degree in Finance from the University of Illinois - Chicago. Jim is an Enrolled Agent, a federally authorized tax practitioner empowered by the US Department of the Treasury to represent taxpayers before the Internal Revenue Service. Gina Gucciardo, CPA Certified Public Accountant 217-839-4226 gina@monotelo.com Gina is a Certified Public Accountant with over 35 years in public accounting. Gina and her team provide tax and accounting services to small businesses throughout Macoupin County and the surrounding area. She spends a good portion of her time volunteering and serving on non-profit boards. She enjoys exercise and runs nearly five miles a day five days a week. She likes to travel and spend time with her family, friends, and pets. Gina has the distinct honor of being the very first graduate of of Blackburn College's Accounting program. Gina and her husband have two adult children, one grandchild and two dogs! Steve Watts, CPA Certified Public Accountant 630-377-1040 steve@monotelo.com Steve is a Certified Public Accountant with an MBA and the CIRA certification. He has extensive banking and accounting experience with direct knowledge of the challenges faced by small business owners. He has developed and implemented various automated programs for management and financial reporting. During his 13 years on the banking side, Steve has prepared financial statements as well as examined and analyzed the financial statements and cash flow for thousands of companies. He is a member of the American Institute of Certified Public Accountants, Illinois CPA® Society, National Association of Tax Professionals, Association of Insolvency and Restructuring Advisors and Turnaround Management Association. Steve and his wife have two adult children. Gavin Tabb, CPA Certified Public Accountant 847-923-9015 gavin@monotelo.com Gavin is a Certified Public Accountant and small business specialist for Monotelo Advisors. He is responsible for overseeing the staff that delivers a premium level of service to more than one thousand clients throughout the year. Gavin has a Bachelor’s degree in accounting from Northern Illinois University. He is an Intuit QuickBooks Certified User and he supports our small business clients throughout the United States with seamless payroll, bookkeeping and monthly accounting services. Gavin and his wife, Elise have a five-year old daughter and one-year old son. Michael Baumeister, CFP®, EA Addy Genetti Financial Planner 847-923-9015 michael@monotelo.com Accountant 217-839-4226 addy@monotelo.com Michael is a CERTIFIED FINANCIAL PLANNER™ for Monotelo Advisors. Michael provides solutions to client’s complex financial planning in a thorough, cost-effective manner. He is the point of contact for all financial planning clients to ensure a constant channel of communication and oversight. His personal experience brings an expertise in the fields of asset allocation, estate planning, insurance review, tax planning and comprehensive financial planning. Michael has a Bachelor’s degree in accounting from Judson University. Michael is an Enrolled Agent, a federally authorized tax practitioner empowered by the US Department of the Treasury to represent taxpayers before the Internal Revenue Service. Michael lives with his wife, Sarah, and their two-year-old son. Addy is an accountant for Monotelo Advisors. Addy graduated from Southern Illinois University in Edwardsville with a Bachelor’s degree in Accounting. She has 18 years of public accounting experience including preparation of individual, partnership, corporate and estate/trust tax returns. Addy serves Monotelo's small business clients with preparation of payroll, sales tax, bookkeeping and monthly accounting services. When she is not busy exceeding our clients' expectations, she is running around with her three boys to all of their sporting events. She loves to travel, especially anywhere there is a beach! Addy and her husband live on their family farm with their three boys. Lisa Rondi Accountant 217-839-4226 lisa@monotelo.com Lisa is a small business specialist for Monotelo Advisors. Lisa has 24+ years of experience in tax return, payroll, sales tax and bookkeeping preparation and review in the Gillespie and Carlinville offices. She strives to help clients with their financial needs in the ever-changing tax system. She enjoys spending time with her family, her church family and doing anything outdoors. She also enjoys spending time on her craft projects and she plays several musical instruments. Lisa lives in Mt. Clare, IL with her pets. Marianne Richter Engagement Manager 847-923-9015 marianne@monotelo.com Marianne Richter is responsible for ensuring that Monotelo is delivering a high level of customer service and meeting the expectations of Monotelo’s small business relationships. Marianne brings 13+ years of diversified training and marketing experience in the consumer goods industry to Monotelo. Working in senior management roles at Kraft Foods for more than a decade, she had national profit and loss responsibility for consumer brands. In addition to her brand management responsibilities, she also played the role of national trainer, traveling around the country training Kraft's emerging managers. Marianne and her husband, Jim live with their two sons who are both in college. Roger Medallo Relationship Specialist 800-961-0298 Roger@monotelo.com Roger plays a key role in developing relationships with small business owners for Monotelo Advisors. He sets appointments for our CEO and helps promote our Second-Act Planning® program to colleges and universities across the country. Roger has a degree in computer science and plays multiple musical instruments. Roger and his wife, Diane have been married for 6 years.

WHITE PAPER INTRODUCTION COULDA-WOULDA-SHOULDA!!! This case was more of a “could have, would have, should have” than it was an opportunity to go back and correct the mistakes of the past. We are choosing to share this case because we think it demonstrates why it’s so important to pursue wise counsel when making big financial decisions. The case involved a high-earning couple. He was a highly paid executive and she was a high-producing realtor. They were planning to make some improvements to their home while also investing in a few income properties. THE CHALLENGE Having a high percentage of their nest egg wrapped up in their retirement accounts, they decided to pull $200,000 out of one of their IRA’s to fund their purchases. When this couple decided to pull the money out of their IRA, they were fully aware of the 10%, $20,000 penalty they would have to pay on the early withdrawal. Given the size of their retirement accounts, it seemed harmless at the time. They, however, had no idea how this decision would come back to haunt them. In creating another $200,000 of taxable income for that year, they not only incurred the $20,000 early withdrawal penalty, they also • Moved themselves into the highest tax bracket (39.6%) • Lost all their exemptions (which cost them over $5,000) • Lost a significant portion of their itemized deductions (which cost them $2,000) When all was said and done, they paid about $95,000 in federal income tax and penalties on their early withdrawal, and netted about $105,000 of the $200,000 they withdrew. THE SOLUTION If this family had sought our advice at the time, we would have recommended that they avoid the $95,000 tax bill by simply choosing to take out a small home equity line of credit. In doing so, they would have retained the full $200,000 in their retirement account and paid no additional taxes. Had this family not been able to borrow against their home we would have encouraged them to do two things: Split the IRA distribution over two years: Not make the $40,000 contributions that they were making to their 401K and IRAs, and use the additional cash flow to reduce the amount needed from the retirement account. This course of action would have enabled them to use their itemized deductions and more of their personal exemptions. They would have put themselves into a lower tax bracket, reduced their tax liability by around $20,000 over the two years, and had another $10,000 in their retirement accounts when all was said and done. Not all decisions lead to this kind of negative outcome, but in this case, the lack of wise counsel caused this family to go down a road that was less than optimal. Having the right advisory team in place would have saved them over $30,000. Coulda-woulda-shoulda! Save as PDF More White Papers WLW: Win One, Lose One, Win One JSZ: Junior Sam Zell SOO: Starting Over, And Over