Do You Have Tax Related NYE Resolutions?!

As the new year is upon us we run across taxpayers who are taking into account their NYE resolutions for 2015.  A lot of clients who have dealt with outstanding tax liabilities over the years are now looking to resolve them in 2015.  However, a lot goes into resolving a tax bill and depending on the severity of the issue it could take longer than a year to get a problem under control. We need to think about Estimated and Federal tax deposits, we need to think about filing timely (no more extensions on filing or payment), and we need to think about resolving the back tax issue (remitting financial data and determining the best steps).  Regardless of your plan, a few things to think about for 2015 should be kept in mind:

Keeping Good Records – keeping good records is essential, meaning mileage (yes keep a mileage log), meals and entertainment (keeping record of what was discussed, with whom, and why, on the receipt). If you’re better with Excel use a spreadsheet, but keep those receipts. Keeping banking records and updating your bookkeeping once per month (if you don’t have the time or expertise to handle this work please interview a few good bookkeepers). We would be happy to provide a referral. Keeping records of each and every expense the business has. This will enable you to have much more control over your business and how it works, the expenses you have, as well what your profits will look like. More importantly, you may be able to forecast how you will pay yourself!

Meeting with Your Tax Professional Early – call him or her now and schedule a meeting before it gets too busy. Get your 2014 tax return done as soon as you can. Doing this will enable for better planning in 2015. If you are waiting on 1099’s, or any other tax documents,  do the best you can to have your tax professional project what your return may look like for 2014.

Make Your Last Estimated Payment (due on January 15th, 2015).  If you took a large bonus at the end of the year please make sure you pay the appropriate estimated payment to the State and the Federal government. Solid planning depends on your ability to stay current and compliant. Might as well get in the habit as early as a few weeks from now.

Check the Mail – Picking up each and every IRS / State notice and making sure we are both aware of the implications. Don’t ignore notices anymore. We may or may not get copied on your notices (even though our Power of Attorney form allows for it).  Therefore, please pay attention. If certain notices are missed it can mean a levy will be sent to your bank accounts, your employer, or your retirement accounts. Don’t assume.  We all know what assuming does.

Finalize Outstanding Tax Issues – Working with us to see how adequate planning can help keep you on track in 2015 and resolve your back tax issues for good!

Let us know if you or someone you know is thinking of planning an attack on those pesky tax issues in 2015. We would be happy to help! Cheers to a successful 2015!