Do You Tax Plan All Year Round?

Tax season ends in 32 days, April 18 and tax professionals have been working diligently preparing tax returns for taxpayers that hope to receive a refund.

Unlike the average taxpayer that does not tax plan year round, unless their situation changes, the average business owner needs to be tax planning year-round. An income tax planning strategy should be in place with quarterly or semi-annual reviews and meetings with your tax expert should not be be overlooked. Especially import is a fourth quarter meeting to determine if any major changes have occurred that will affect your end of year Profit & Loss. Remember your Enrolled Agent, America’s Tax Expert® cannot undo something you have already done, so it’s always best to consult with him or her before you make this change.

Many small business owners need to file estimated taxes four times a year. Taxpayers with C corporations have to file quarterly estimated tax payments if their total tax liability is over the threshold and business owners with S corporations or partnerships should be making quarterly estimated payments or taking enough salary and paying withholding tax to cover their business tax liability.

Calendar year taxpayers have estimates due on April 15, June 15, Sept. 15 and Jan. 15.

Have any questions, contact Jeffrey Schneider, EA, CTRS, NTPI Fellow at 772-337-1040 or at info@sfstaxacct.com, for more information .