How can I separate personal & business finances?

As an entrepreneur, it is essential to clearly separate your personal and business finances from the start. This is vital for accurately preparing your taxes and safeguarding your assets. Whether you are just starting out or seeking more effective ways to organize yourself, this article will guide you to set better habits for long-term financial health, wealth, and success.

1. Separate Bank Accounts

You should have a separate bank account for each business you own. Each business should have its own necessary accounts. Typically, you will start with a checking account. Over time, you may want to open additional accounts that are relevant to the growth of your company such as payroll dedicated accounts and savings accounts.

2. Separate Credit Cards

Your business should have its own credit card(s). This will help you build your business credit and allow you to grow. Building credit will help in the future for inquiries such as applying for a loan or taking governmental contracts (if applicable).

Early on, your business may not qualify for a credit card. If this is the case and you need one, we recommend dedicating a personal credit card in your name for 100% business use and do not mingle. This should be considered a temporary solution until your business qualifies for its own card.

3. Register the Business Properly

You must comply with all government regulations to register your business as a legitimate entity.

The most important step is to register for a valid Employer Identification Number (EIN)/tax ID. You will need this number to accurately file your taxes and to open your business bank account(s).

Other state and local regulations may apply, so you must stay informed about the requirements, such as filing your annual/biannual statement of information. If you are concerned about missing deadlines or need assistance in keeping track of these regulations, we recommend contacting a professional accountant.

4. Accurate & Detailed Records

Proper record-keeping is essential for maintaining your business records and to have valid financials ready for tax preparation. We recommend implementing bookkeeping from the beginning of your company’s early stages. If you need help with bookkeeping, we recommend hiring a professional bookkeeper which will maintain your records on a consistent basis.

Separating records is important to keep yourself organized to maintain the business vs personal boundary. Records may include receipts, invoices, contracts, tax documents etc. Good habits start from the beginning so ensure you have separate files organized from the start or begin now.

5. Salary or Draws

Do not mingle transfers between your business and personal accounts. If you would like to distribute a salary to yourself, we recommend speaking to a professional accountant to determine what the best method would be. The appropriate method correlates with how your business is set up. Draws, distributions, and payroll are methods you may use. The type of business created will determine how you can proceed with the best method.

6. Consult a Professional

Speaking with a professional tax advisor or accountant may be the best way to help you formulate a plan to better separate your business and personal finances.

The initial investment will yield significant returns in the future and ensure your assets are protected for long-term success.

Need help or would like to connect with a professional today? Contact us to speak to one of our friendly team members.

How Can I Prevent an IRS Audit?

An IRS audit can be a daunting and unpleasant experience for anyone. It can take countless hours to resolve and results in a lasting headache.

Typically, people hire professionals to help in the case of an audit, which can result in colossal bills and piling expenses. Working with an IRS auditor can require countless hours and stress. Nobody wants to deal with this.

So how can you prevent an IRS audit? There’s no guaranteed method, however, there are actions that can prevent the likelihood and protect you in the unfortunate case of one.

Here are some steps you can take to prevent an IRS audit:

Consistency

• Remaining consistent with how your taxes are prepared is key to ensure red flags do not arise.

• Avoid huge, uncommon deductions, claims or charitable contributions. Stay within a reasonable number and ensure you always have valid documentation to back up your numbers.

• We do not recommend frequently switching tax preparers as this may cause frequent inconsistencies on your return.

Accurately filed tax returns

• Ensure your tax returns are prepared accurately and filed on time.

• File your taxes every year! Do not leave multiple years unfiled.

• Remaining compliant with what is legally expected and IRS compliant is imperative.

Hiring a professional tax preparer

• Hiring a professional tax preparer will increase the chances of your tax return getting filed accurately.

• IRS rules/regulations constantly change and registered tax preparers are required to renew their licenses and remain up-to-date with all regulations to ensure compliance.

• Double-check the tax preparer’s credentials and verify they are qualified to prepare your tax return.

• We recommend checking their reviews and background online. Make sure your professional is someone trusted and known within the community.

• Make sure you provide all the necessary documentation to your preparer.

• Always review your return when they send it to you for your review. Please review and verify all information is correct prior to signing. You are ultimately liable.

Clear and organized records

• Keep all relevant records and receipts in an organized format.

• We recommend keeping these records for 7 years.

• You may digitize these records if you prefer.

• If you have a business, you must separate business and personal expenses. Mingling business and personal transactions are highly frowned upon and if the case of an audit, will likely lead to all your records getting investigated.

• If you have a business, this leads to a need to have proper financial statements and records kept.

Hiring a professional bookkeeper

• Some people, believe it or not, hire a professional bookkeeper for their personal funds. Although that’s great, it’s not completely necessary. However, if you have a business, you will need proper financial statements and records kept.

• We highly recommend hiring a professional bookkeeper to prepare financials for your business.

• A bookkeeper will ensure everything is recorded in a timely manner and have the organization needed.

• Ensure your bookkeeper is qualified to prepare your company financials. Ideally, you will have someone who is also an accountant to ensure accuracy of all records.

• Early on, you might be able to keep track of your records yourself, however, we highly recommend hiring the right professionals to ensure the accuracy of all financial statements used to prepare your income taxes.

PROMPT ReSOLUTION to IRS notices

• If you receive any notices from the IRS, please respond and resolve them in a timely fashion. Do not leave notices unresolved for weeks and months.

• We recommend double-checking the validity of these notices to ensure they are from the IRS.

• The IRS will send formal mail to your address. The IRS will never call, email, or come to your home.

• Please verify with your tax professional if you have any questions regarding the validity of your notice or need help resolving the notice(s). They should be able to help! This service is included with our income tax preparation fees, so we always have your back.

Sometimes getting audited is like a lottery. It could be by chance. If you are unlucky and get audited, taking the above prevention measures will protect you.

Investing in the right type of help from the start will save you down the line; both financially and emotionally as well.

Need help today? We can be the trusted team to prevent an unwanted audit and protect you upfront. Contact us today!

Can I file a joint tax return with my girlfriend or boyfriend?

Filing a joint tax return with your significant other can bring you beneficial tax benefits.

Let’s cut to the chase, you cannot file a joint return with a partner you are not legally married to.

However, you might be able to take advantage of other techniques that might be able to benefit you and your partner.

Potential Routes:

Head of Household

• You/your partner might be able to qualify as filing head of household and utilize your significant other as a dependent. This could be beneficial for you depending on your unique situation.

Domestic Partnership or Common Law Marriage

• After living together for a certain period, you might qualify for local/state benefits that might be similar to married couples. Please note, you still won’t be able to take advantage of federal joint return benefits.

If you are married legally, you may file a joint tax return, even if you are not living together. As long as you are legally married, you can file a joint tax return.

Some Joint Tax Return Benefits:

Tax Brackets

• Double the income might land you a more favorable tax bracket.

Deductions

• You might benefit more from the deductions joint files can take advantage of. For example, the standard deduction is greater for joint filers.

IRA Contributions

• Joint filers can contribute more to their IRA. Greater contributions can contribute to your retirement wealth and stability over time.

So, if you’re thinking about your tax benefits and have someone you’re committed to, it could be time to take that relationship to the next level and tie the knot.

We recommend speaking to a tax professional to explore the tax benefits of your specific situation.

Need help with more advice and tax strategy? Contact us today and we’re happy to help you and your partner.

Understanding the Tax Implications of Remote Employees/Workers

Remote work is here to stay, and while it’s great for flexibility, it also comes with some tax headaches for business owners. If you have employees working from different states or even different countries, you could be juggling state tax laws, payroll compliance, and potential tax liabilities you didn’t even realize existed.

Key Tax Considerations:

• State and Local Taxes

• Each state has different regulations with taxation. Your company may need to withhold state taxes based on each employee’s location. You may need to register in each state to file accordingly.

• Even if you are a small business and mainly operate in one state, it’s always important to consider local regulations for any of your full-time, part-time, or contractual employees. The same regulations are applicable for both small and large-scale businesses.

• Payroll Tax & Withholding

• Local tax laws vary per location. Employers must ensure the correct federal, state, and local payroll taxes are withheld.

• We recommend outsourcing your payroll to a reliable payroll company to ensure the accuracy of these requirements. This is especially recommended for smaller companies that do not have the capacity or need to have a payroll-dedicated department. Transferring the burden of these tricky details to a dedicated company can help free your time to operate your business and ensure it’s done right from the start.

• Double Tax Issues

• Your company needs to ensure compliance; your employees might face double taxation for your home state of operation and the state(s) where your employees work.

• Some states offer certain credits to avoid double taxation; however, it’s always important to check regulations for each state as they are constantly updating.

• Home Office Deductions

• In the past, employees were able to deduct certain expenses related to their home office. However, reforms and updates to law are continuously occurring. The Tax Cuts & Jobs Act has significantly changed the landscape of the past. Through 2025, most of these prior benefits are suspended (unless you are self-employed).

• However, businesses can still reimburse employees for expenses that can be deductible for the company. Ensuring compliance is always key to getting the most with what’s legally compliant.

• Hiring International Remote Workers

• Ah, yes, outsourcing. A common practice we see more frequently even for local small businesses. Some owners may simply see the benefit of outsourcing for cheaper labor. International tax rules vary per country and require a global tax accountant. Businesses must ensure compliance with each government and verify foreign employees have appropriate and legal work visas with regard to their location.

Staying Compliant:

• Consult a Tax Professional

• Consulting a tax professional is imperative as the regulations and laws around this subject are constantly changing. You may require a certain type of tax professional depending on the situation of your business. It’s always best to invest the time to connect with a tax professional who can tailor their advice to your unique situation.

• Create Clear Remote Work Policies

• Establishing clear guidelines for remote work and any reimbursements your company plans to provide is important from the start. We recommend providing an outline of tax liabilities for your employees to ensure their obligations are transparent from the start. Lastly, state-specific policies may vary per state and require disclosure per law.

• Use Payroll and Compliance Tools

• Payroll software or relying on a professional payroll company is highly recommended. This will save you a headache down the road and ensure a professional takes care of this complicated and time-consuming job.

We hope this blog has shed light on understanding the implications and components within hiring remote workers. Whether a big company or small, it’s always important to consider regulations across states and remain compliant from the beginning.

Need more help or guidance with your business? Contact us today, and we’re happy to help.

What’s the difference between a bookkeeper and an accountant?

There are two roles that play a big role in managing your business’s finances, and those are the roles of a bookkeeper and an accountant. Let’s explore the difference between the two and why it matters for your business.

Bookkeepers and accountants are similar in the sense that they both can prepare your financial statements; however, there are some distinctions.

What is a bookkeeper?

Bookkeepers are responsible for accurately recording and categorizing every transaction your company has to keep your financial books, "records," up-to-date in order to help you make sound business decisions and prepare for income taxes.

Here’s what bookkeepers usually handle on a daily basis:

• Recording transactions—All incoming and outgoing sales, purchases, etc.

• Categorizing transactions—Properly categorizing each transaction to be recorded correctly.

• Bank reconciliations—Reconciling each bank and credit card on a monthly basis to ensure all transactions have been recorded and recognized.

What is an accountant?

Accountants will analyze the records your bookkeeper creates to provide you strategic advice that may be related to your company’s growth, planning, strategic decision making, taxes, etc. Your accountant should really look at the big picture and help you thrive in whatever situation you may be in. An accountant is usually more qualified than a bookkeeper.

Here’s what an accountant usually handles:

• Financial analysis—Analyzing trends and patterns is a trait accountants have to be able to provide the strategic advice that will help you grow.

• Strategic advice—Your accountant should have deeper knowledge to help guide strategic business decisions such as asset acquisition, cost management, and budgeting.

• Tax planning—Preparing for tax season and planning ahead makes a big difference for your company’s outlook.

• Auditing—Reviewing all financials internally on a periodic basis is important to make necessary adjustments, ensure accuracy, and verify legal/IRS compliance.

• Preparing financials for tax preparation—Having the financials ready for tax preparation is an important step that will determine how easy and accurately your tax filing becomes. The main financials used are the balance sheet and the profit and loss statement.

Summary of Key Differences:

• Knowledge: Bookkeepers focus on accuracy to ensure timely recording of transactions. Accountants have greater knowledge to be able to provide you analytical and strategic advice.

• Skills: Bookkeepers have the knowledge to operate the software needed to keep track of your books. Accountants have a broader understanding of accounting principles and functions.

• Scope of work: Bookkeepers manage the day-to-day transactions. Accountants analyze the results to make informed decisions.

Why does it matter for your business?

Both bookkeepers and accountants are vital functions for a company to thrive. It’s important to know the distinction between the two in order to hire the right help needed for your business. Small businesses may be able to get by with a bookkeeper and yearly tax preparer. However, as the company grows, an accountant can play a vital role in truly helping you thrive, gain company insights, and plan ahead.

It's a great advantage to have the benefit of the services both a bookkeeper and accountant may provide. Ideally, you will find someone or a team who can do both!

We can help with this. Contact us today!

When can I file my 2024 tax return?

Tax season is upon us, and it’s a season that could be filled with anxiety, dread, excitement, and hope.

Tax season lasts from January through April and officially starts when the IRS announces that they will officially accept returns.

This year, January 27th 2025 was the official start date of tax season.

However, before you rush or wait to get your return filed. Here is the breakdown of what to consider prior:

1. Ensuring all relevant documents are received

Typically, all relevant documents to file your taxes are not received in time for you to file by the 27th. For example, 1099s are not due until January 31st, so it’s very possible items such as these could still be in transit.

We recommend taking your time to verify all necessary documents are received. Filing with all your documents is vital to ensure your return is filed accurately to avoid amendments and receiving notices from the IRS.

2. Filing in a timely fashion

The faster you file, the faster you can receive your refund. However, don’t rush it. As #1 noted, we recommend allocating time to gather all necessary documents.

On the flip side, if you take too long to file, you may run into problems. Your tax preparer may be busy and unable to meet the deadline in time. You also might have a tax liability and accumulate penalties and interest. To avoid all of this, we recommend speaking to your tax preparer in advance and paying estimated taxes if needed.

You may file by mail or electronically. We recommend filing electronically to avoid delays in receipt of your return. Electronically filing will also allow your tax preparer to receive confirmation once your return is received and accepted.

The deadline to file corporate returns is March 15th, 2025.

The deadline to file personal returns is April 15th, 2025.

Tax Filing Deadlines in Special Situations

We have noticed that in special cases, the filling deadlines may be extended. This is usually for affected areas of natural disasters. For example, in 2024 the filing deadline was extended for San Diego residents due to floods. We predict that victims of recent fires in Los Angeles County will also receive an extension for filing their return. The extensions are announced by the government and vary per case.

3. Receiving your refund or paying your taxes

There are many ways to pay your taxes. Online, through mail, or with ACH. We recommend direct deposits or withdrawals to ensure your refund is received as fast as possible and your liabilities are taken care of. This will be the fastest method. We usually see refunds or withdrawals within days of filing; however, it should be no longer than 21 days.

Need any help filing your return? Leave it up to a professional and relax. Contact us today and happy filing!

What do I do if my tax preparer is ghosting me?

This is a question we get when new clients call us and unfortunately it happens. It’s never fun getting ignored by someone, especially your tax preparer.

First of all, it may be time to consider a new tax preparer. We always recommend sticking to the same preparer, as switching too much (for example: every year) is not good and could create inconsistencies that may cause red flags for an audit.

However, if you’re not able to reach your tax preparer in a timely fashion, it may not be the level of service you deserve or need.

Here are some steps you can take to try to reach your tax preparer:

1.       Email

Email them so you have record of your correspondence. Have it in writing, especially if there are documents that still need to be returned to you, is the first best step.

2.       Call

Call them and if possible, text them. If you can’t reach them after multiple attempts move on to the next step.

3.       Send a letter

Send a physical letter to their address. This letter should outline the situation, items needed, urgency etc. and we recommend sending it with certified mail to ensure it is received. This is another form of writing that will be good to have on record. Sending a letter is especially important if you need to retrieve documents.

4.       Social media

Consider finding them on social media, for example, LinkedIn, and sending them a direct message. It might do the trick.

5.       Go in person

If you have an address they conduct business, it would be a good idea to go in person to try to speak to your preparer, especially if your documents are there and you would like to retrieve them. Perhaps going in person can give you insight of the situation. In unfortunate cases, such as the preparer passing, sometimes the practice may be sold to a new owner or closed altogether. You may be able to gain insight on how to retrieve the files and who is in charge.

If you do not feel comfortable going in person, it may be worth it to contact a marshal to go on your behalf.

6.       Hire another tax preparer

It is likely time to move on to a professional that will provide the service you deserve. A lot of the time we see tax preparers ignoring clients because they simply are too busy. However, you deserve better.

Getting a response back in times of need, especially if you receive an IRS or state notice, is a perfect example of a time you might need to lean on your tax preparer. That’s the benefit of having a professional take care of your filing.

Once you hire someone else and explain your situation, they should be able to help. If you have unresolved notices with the IRS, your new preparer will likely want a power of attorney to try to resolve the issue. Hopefully your issues will be resolved at this point and you can move on.

7.       Report your old tax preparer

Depending on the situation, you might consider reporting your old tax preparer if they have brought you to a situation that is unethical and illegal. For example, if your old tax preparer told you that they have filed your return and you paid them to do so, then you receive a letter from the IRS and discover that your return was never filed, you have the right to take action and seek justice.

Consider filing a report with the Better Business Bureau here or directly with the IRS here.

8.       Seek legal help/Hire an attorney

If further justice is needed, it might be the last resort to seek legal help. Perhaps you may consider small claims court or hiring an attorney. Having an attorney send an official letter, could help resolve the issue at hand. This level of formally with hopefully resolve all issues. Depending on the situation, if nothing above helps, you may consider suing; the last resort we hope you won’t have to arrive at.  

You deserve a tax preparer that will respond to you in a timely fashion and give you the respect and caliber of professional service you deserve.

We strive on customer service and always try to respond same day, or 1-2 business days during our busy tax season. Regardless, we always have clients come to us and feel refreshed with our faster response time.

Tax season is stressful, but that’s why your professional tax preparer should make it as easy and stress free as possible.

If you’re still getting ghosted and would like to make a switch, we’re happy to help you navigate this frustrating situation and look forward to our partnership. Contact us today!

How to Prepare your Small Business for Tax Season

Tax season is a stressful time so here’s a step-by-step guide on how to better prepare for success:

1.       Prepare your company financials

Your company needs to have financials because without financials, your tax preparer will not be able to efficiently prepare your return in the most accurate fashion.

This step should be taken throughout the tax year to ensure you are ready. The January after the year ends should really only be a time to wrap up loose ends and close your books.

Financials that are most important to file your company’s taxes include a profit and loss statement and balance sheet.

The profit and loss statement will include your income, cost of goods sold and expenses. The profit and loss statement should be prepared by utilizing all company bank statements and credit card statements.

The balance sheet shows your assets, liabilities and equity. This includes things such as loans your company may have, machinery, equipment, personal draws. and initial investment you put in your company.

If any company expenses or transactions have been received in other fashions such as your personal account (something we do not recommend) and/or cash, there are ways to record these transactions through journal entries. This is a step your bookkeeper/accountant should be able to assist on to ensure accurate recording.

Most companies have a professional bookkeeper to take care of their financials.  A bookkeeper is helpful especially when your company has a handful or more transactions a month. Most companies that are operating are in need of this service. Having a professional handle this step will allow you to correctly categorize transactions in compliance with IRS regulations and generally accepted accounting practice.

A lot of the time, small businesses might think they don’t have enough transactions to have a bookkeeper or prepare financials. Our general rule of thumb is that even if you’re a small business, you need to keep track of the transactions your company has. Small business owners in early stages of their company often take the burden themselves and might begin bookkeeping without properly understanding where to book certain transactions. This can create problems and may open doors to IRS audits -a time-consuming headache we don’t wish for anyone.

We often get asked if small businesses can use Excel sheets to keep track of their company transactions. Although this might be something business owners can handle initially, the more their business grows the less they will be able to keep track efficiently in this fashion. We recommend at least using a bookkeeping software, such as QuickBooks, to have the proper software that will generate your reports. However, keep in mind that the quality of what you input is the quality that reflects on the reports. If you are not aware of all the tips and tricks accountants and bookkeepers know, it’s truly best to hire some help.

Overall, having these financials are crucial to ensure your tax preparer will be able to prepare your taxes.

2.       Communicate with your tax preparer

Once you have your financials ready and have already distributed forms such as 1099s and W2s your company may process, it’s time to communicate with your tax preparer.

Provide your financials to your tax preparer. Depending on who your tax preparer is, they may have their own protocol regarding how to provide necessary documentation and what deadlines they may have to be able to file your return on time.

If you file with us, we typically ask you to upload all files to our secure portal. Once you are finished, we ask you to notify us. After that, we prepare on a first come first serve basis. Some returns may take as little as 24 hours to complete. Some may require a longer time which can take weeks depending on our backlog or unresolved lingering questions we may have with you.

3.       Sit back and relax

Once your tax preparer is working on your return, you can sit back and relax.

Your tax preparer should contact you as they are completing and finishing your return, so stay alert to your emails and/or phone calls to ensure timely completion of your return.

Try to file your taxes on time. Delaying your filing may develop penalties and interest.

As a reminder, business tax returns (S corporation, C corporation, LLC partnerships) are due March 15th.

Sole proprietorships and single member LLCs are due with personal income taxes on April 15th.  

4.       Pay your taxes or collect your refund

Hopefully you’re receiving a refund, but if not, it’s time to pay your taxes and move on. Once you’re done with this final step you can focus on continuing to grow your business.

No one likes tax season, but it’s best to take care of it in a timely fashion so you have one less thing on your mind.

Need help with any of your bookkeeping or tax preparation? Contact us today and we’ll help you through this process. It should be painless!

End the Year Strong: 5 Critical Steps Every Business Owner Needs to Take

As the year dwindles down and the holiday cheer is among us, it’s easy to push business matters to the side. However, the final quarter is a critical time to set yourself and your company up for success in the New Year. If you’re a business owner, here are 5 critical steps you can’t miss before reaching the finish line with the year end.

1.       Closing your Financials: Why it Matters

If you’re operating a company, you likely already have financials and work with a professional that will properly prepare them to be compliant with US law and regulations.

Closing your financials in a timely manner is imperative. Of course, December cannot be complete until the month has finished, however remaining up to date is crucial at this time of year. Closing your financials means reconciling all company bank and credit card accounts, recording all assets, resolving all remaining questions, and ensuring company financials are ready for tax preparation.

Once you’re in the later half of the year (the 4th quarter), it is a critical time to examine your books. This will allow you to make strategic decisions prior to the year end.

Strategic Decisions:

2.       Tax Planning: Plan Now, Save Later

a.       You cannot plan for taxes without having up-to-date financials and tentative projections for what the year end looks like.

b.       Planning for taxes needs to be done in the current year because if you can make some decisions that can lower your tax liability, those decisions must be done in the tax year. Once the year ends, it is too late to go backwards in time. (Unless you have a time machine.)

c.       You may explore options to defer revenue or accelerate your deductions.

3.       Issuing bonuses: A Win for You and Your Employees

a.       If you see your bottom line is very high and you will be liable for taxes, you may consider issuing bonuses to your employees. This is common practice for larger companies, however small businesses often times don’t consider or forget this simple trick.

b.       These bonuses will increase your payroll expenses and in turn decrease your bottom line.

4.       Asset Acquisitions: Smart Purchases, Smarter Savings

a.       You may want to decrease your tax liability with asset acquisitions. Perhaps your company may find it beneficial to acquire vehicles, machinery, computers and equipment to provide significant tax benefits.

b.       Large purchases can be strategically acquired before January 1st, in order to help decrease your tax liability. To estimate how much, we advise you to speak to your tax preparer.

5.       Paying Estimated Taxes: Proactive Planning

a.       This one is not always a preferred method, however for companies that truly will incur a large tax liability once they file, it may be in their best interest to pay estimates up front to help with your company’s cash flow, avoid large tax liabilities in the future, and ultimately mitigate tax season stress.

b.       Your tax preparer will be able to work with you to determine how much in estimates you should pay and how to make the payments.

Don’t let the year pass without taking these critical steps! Your future self will thank you. Speak to your accountant today or contact us if you are seeking help!

Is my Tax Preparer Responsible for Filing on Time?

Tax season can always be stressful, but having a tax preparer should relieve some of that tension.

In theory, when you hire a tax preparer, once proving all the necessary documentation, your professional should prepare and file your return. However, there are always instances that raise the question of who is responsible. This blog will answer those lingering questions.

Although every story is unique on its own, the government and Internal Revenue Service have laws in place that clearly state who is ultimately responsible.

Situation 1: Failure to Provide Paperwork

If you fail to provide your necessary documentation, your tax preparer will not be able to file your taxes nor meet the deadline. This situation is fairly simple. You are responsible.

Situation 2: Providing Paperwork Late

If you fail to provide your necessary documentation in a timely fashion and you provide your paperwork after the date your tax preparer has requested, they may not be able to meet the deadline. This is why they like to plan ahead and set dates. Typically, this will be a situation where you may request an extension or your preparer will plan to file one for you. Hopefully this situation’s mistake won’t be made with the final extension deadline. Either way, you are responsible for not providing the documentation on time; you are responsible for your taxes.

Situation 3: Failure to Follow Up

If you provide all your necessary documentation in a timely fashion and do not follow up with your tax preparer, it is still your responsibility that they are filed on time.

Situation 4: Providing Paperwork and Following Up

If you provide all your necessary documentation in a timely fashion and follow up with your tax preparer, you are STILL responsible that your taxes be filed on time.

Conclusion: The tax payer holds the ultimate burden and responsibility to ensure their return is filed on time.

The responsibility ultimately lands on the tax payers and any penalties, interest, and fees associated with late filing still fall under the tax payer’s responsibility.

Situation 4 was the story of the case United States v Boyle. Relying on a tax preparer does not remove the responsibility from the tax payer (Boyle, 469 U.S. at 251).

The Journal of Accountancy summarizes this case, “In Boyle, the taxpayer claimed that his attorney failed to file his federal estate tax return by the prescribed due date, even though the taxpayer provided all the records the attorney requested to prepare the return and even sought periodic updates on the status of the return. In its opinion, the U.S. Supreme Court provided a ‘bright-line’ test that ‘failure to make a timely filing of a tax return is not excused by the taxpayer’s reliance on an agent, and such reliance is not ‘reasonable cause’ for a late filing under [Sec.] 6651(a)(1)’ (Boyle, 469 U.S. at 248, 252) .”

The Internal Revenue code clearly puts an “unambiguous, precisely defined duty” on the tax payer to file in a timely fashion.

The Internal Revenue Service explains that reliance on a tax professional is generally not a valid reason for failure to file or pay a tax on time. The IRS details, “You're generally responsible for complying with tax law even if someone else handles your taxes. You should know what your tax preparer files and get proof that your return or payment is sent on time.” 

So, in a nut shell, although your tax preparer is hired to relieve some stress while filling your taxes, it is still your responsibility to ensure your taxes are filed on time.

Finding the right tax preparer for you will help you ease the burden of filing.

At V&R Associates, we strive to follow up multiple times, ensure all paperwork is received and all questions are answered to file on time. However, there’s only so much we can do without proper communication from the client’s side. This is why we stress, that although certain firms like ours strive to provide you excellent service, it’s ultimately your responsibility -and that’s the law.

Want to get in touch with one of our professionals today? Contact us and we will get connected shortly.

New 2025 Tax Rates & What You Should Do Before 2024 Ends

It’s that time of year again. Your favorite governmental agency, the IRS, has released its new tax rates to adjust for inflation. Right in time to give you a scare with Halloween.

Why do new tax rates matter?

Tax rates reflect the amount of taxes you will owe.

With new tax rates, it may be in your best interest to plan ahead and better prepare yourself.

Here are the new marginal rates:

For tax year 2025:

• The top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:

• 35% for incomes over $250,525 ($501,050 for married couples filing jointly).

• 32% for incomes over $197,300 ($394,600 for married couples filing jointly).

• 24% for incomes over $103,350 ($206,700 for married couples filing jointly).

• 22% for incomes over $48,475 ($96,950 for married couples filing jointly).

• 12% for incomes over $11,925 ($23,850 for married couples filing jointly).

• 10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).

To read more about the updated 2025 tax year IRS details, please click here.

Although these numbers do not reflect the implications you will have for your 2024 tax liability, it reminds us of tax season in general, and what is in your best interest to do before 2024 ends.

101 Advice: Planning Ahead Before 2024 Ends

For individuals receiving a W2, it would be a good idea to check your pay stubs and ensure that your employer’s payroll provider is deducting the right amount of taxes. You’d be surprised, but we see errors in this frequently. If the right amount is not deducted, it could be the reason you may owe more taxes while you file your return. The amount may shock you, so it’s better to double check. If you need help, please speak 1:1 with your tax preparer.

However, although it’s good to make those corrects to your W2 as soon as possible, it likely won’t drastically change your liability (or refund) this late in the year. If enough has not been deducted, your tax preparer will calculate how much extra you are predicted to owe while filing your 2024 taxes. You may consider submitting an estimated tax payment to avoid penalties.

If you are a business owner, planning ahead is imperative as you have the power to change your fate (at least a little). This is the time of year where every business owner should have a 1:1 with their accountant, analyze their company’s bottom line profit and plan what to do to combat their tax liability before the year ends.

Besides the option of paying estimated tax vouchers, perhaps this is a good time to consider bonuses to add to your payroll, asset acquisitions and other large purchases such as a car/truck, computer/laptop, printer, etc. Decreasing your bottom line will decrease your tax liability so if you wanted to make some purchases for your business and have been holding off the whole year, try to get them in before it’s too late.

Once the year ends, you can’t do much to change the numbers and your ultimate tax fate. (Unless you had a time machine.)

So instead of getting frustrated during tax season, we recommend planning ahead and being proactive about what you can do to decrease your tax liability.

Need help with a professional? Contact us today and an expert will get in touch with you shortly.

Can my dog be a tax write off?

No one loves paying taxes. It is only natural people start to get creative with ways they can decrease their tax liability. With the growing rate of furry friend owners, people can’t help but wonder: can my dog help me decrease my tax liability?

Many consider their dog as their child. So, if you can use your children to decrease your tax liability, can you use your dog too?

Surprisingly, we get this question a lot so let’s break it down…

The simple answer is “no, but…” This is because in certain cases, you actually can use your dog as a tax write off.

Here are some situations that will allow you to use your dog in your tax return:

1.       Service or Emotional Support Animal (Therapy Dogs)

In certain cases, dogs may be used to help you with emotional or physical needs. Dogs may help guide a blind or deft person, help with seizures etc. We recommend having your medical reason documented and diagnosed. We also recommend speaking to a tax professional to ensure you qualify and meet all the IRS requirements.

2.       Business Expense

If you have a business, let’s get creative. Does your dog perform any service that helps you and your business in daily operations?

Perhaps your dog might be acting as security and protecting your business front from potential predators. It may be comical, but depending on your business, it could be a valid claim that your dog is meeting security requirements needed to operate safely.

Maybe your dog serves as your company mascot greeting all your guests. Perhaps your dog is part of your company’s branding and used to lure in clients. Depending on the nature of your business, your dog might be an integral source to your company’s marketing efforts and client retention.

Your dog, or cat more likely, could be acting as pest control. Perhaps any critters you may have will be taken care of by your furry friend. What better way of pest control?

3.       Fostering or Rescuing

You might be spending a lot of time with foster or rescue dogs. If this is the case, you could use your associated expenses in your tax return as charitable expenses. To do this, you must work with a valid 501(c)3 organization. We recommend properly documenting your expenses, and speaking to a tax professional to ensure you meet the requirements needed.

Using your dog as a tax write off is not very common, however you might be able to benefit from talking to an expert about how your situation might align with a legal and legitimate reason to benefit from your dog.

Want to speak to someone today? Contact us and we’ll get int touch shortly.

5 Ways to Get Paid Faster as a Small Business Owner

Collection can get stressful and tricky. As a business owner, getting paid on time is imperative for adequate cash flow and the overall ability to function as a company.

It’s not always as simple, especially for service-based business structures.

Here are 5 tips to help you get paid faster:

1.       Invoice Promptly

Invoicing promptly is important for your on-time payments. If you forget to invoice, or send it late, not only do you look unprofessional, but you can’t expect to be paid on time.

Internally within your company, consider preparing the invoice in advance for it to be ready when needed. This will save time and get you one step ahead.

You can consider scheduling an email with the invoices to avoid forgetting later, have an employee dedicated to sending the invoices, or set up automatic invoices to be sent with software.

2.       Presentation Matters

Having a professional invoice makes a difference; to have clients take you and your company seriously. Ensure all names, addresses, products, and services are spelled correctly.

Branding matters. Having a custom invoice with your company logo and/or color theme can help build a superior perception clients have of your company. Keep it professional but stay consistent with the overall theme of your company. For example, an art company may consider a more creative design compared to an audit company who may strive for a more serious design.

Consider how you’d like to systematically provide invoices. Digital and physical means. Which do your customers prefer? With the push to digital, this may be your preferred first method of delivery. Perhaps mail could also be utilized for larger amounts or certain cases.

3.       Offer Various Payment Methods

Don’t make it hard for customers to pay you. Offer various payment methods and payment plans for larger amounts. If customers ask for specific payment methods such as Zelle and Venmo, perhaps you can consider adding them to your company’s accepted payment methods. 

Pro tip: Ensure they have the correct channels to pay you. For example, if your client sends a Zelle to the wrong company, there’s no way for them to retrieve it back.

Speak their language and adapt to their needs. Once you do so, they will feel more comfortable and feel better paying on time, in the method they desire.

Pro tip: Proceed with caution for payment methods that could be reversable such as Venmo.

Lots of people are busy and don’t read. Explain the various payment methods multiple times. (i.e. On the invoice, in the email, over the phone…etc.) The easier it is for people to pay you, the faster you will get paid.

Pro tip: If you accept credit cards, it may be worth considering to upcharge for the merchant fee you pay. This is becoming a more common practice that sometimes people expect. You may include a discloser on your invoice, website, or business front.

4.       Automate

Software that will help you automate your invoicing could be a strategic investment to ensure the process of collecting receivables is more streamlined.

Certain software can automate from start to finish. You may set up reminders at certain periods in time and decrease the human labor necessary to follow up periodically.

                Pro tip: Proceed with caution if you plan to tie your invoicing software to your bookkeeping software. Duplicates and integration issues are common. Using the same software could be considered. Speaking to your accountant may be helpful to avoid issues down the line.

5.       Consider Deposits and Up-front Payment

For large projects, deposits may be the best option to ensure you recoup some of the cost up front. This is a standard procedure and can be included within your service agreement contract.

You may also consider collecting the full amounts up front prior to beginning any work. This may work in certain situations or become a standard practice of your business.

Collection isn’t easy, but utilizing these tips could help increase your collection process and incoming cash flow so your business can run smoother.

Accounting Tip: Invoice and record payments received in one system.

From an accounting perspective, it would be most effective to invoice and record receipt of payment in one system. The most common in America is QuickBooks.

Recording receipt of payment from customers will help you understand what’s left to collect, avoid duplicate invoicing, and increase the accuracy of your accrual vs cash basis accounting.

When viewing your financial statements, an accrual-based profit and loss statement will show the total income earned. Cash based financials show the total income received. The distinction between earned and received makes a significant difference on your company’s bottom line.

Need more help or clarification? Contact us today and speak to an expert.

5 Ways to Grow your Savings

You have a savings account you want to grow. Here are 5 tips to help you achieve the growth you desire.

1)      Budget

Budgeting never sounds fun, but it can help uncover what’s a necessary expense and what’s “unnecessary” even if desired. To have a thorough idea of the whole picture, tracking all your expenses will help you uncover what should and should not be part of your budget. Bookkeeping is an excellent way to keep track of your expenses so you can see the big picture. You might be surprised with what you find.

2)      Cut Expenses

If you decide to track your expenses as recommended in #1, you will see what expenses are too costly and places you can minimize or cut completely. While doing so, you might find subscriptions you don’t use and are unaware of that you can delete or habits you didn’t realize costed you so much, such as having your daily coffee.

3)      Set Up Automatic Transfers

Once you’ve budgeted yourself and know what is necessary for your monthly comfortable living standards, set up automatic transfers to your savings account so you won’t be tempted to touch whatever you decide to set aside. Once it’s in your saving’s account it’s more likely to stay there as opposed to spent.

4)      Grow your Income

It might be time to consider what stage you are in your career and what ways you can grow your income. Perhaps a side hustle such as consulting might allow you to have the income you need to reach the goals you set.

It’s never too late to grow your income. The people you surround yourself on a daily basis could help foster the environment you need to get motivated. Good vibes and positivity will help you get the boost you need.

5)      Invest

Is your savings account simply earning a few cents a year? Perhaps it’s time to think further than the low interest yielding bank account your funds are sitting in. Consider a high yield savings account, CD, or money market account. Do your research in detail and invest wisely to safely grow your funds. Speaking to the right professionals, such as a financial advisor will help guide you to a solution that will help your situation most.

Strategies to grow the savings you have exist. With the proper knowledge and confidence you need, you’ll be reaching your goals in no time.

Need any help with budgeting, tracking expenses, or simply planning ahead? Contact us today and we can help you plan.

5 Costly Mistakes Small Business Owners Commonly Make

Owning a business is no easy feat. Are you doing everything you can to ensure your success? Here are the top 5 costly mistakes we commonly see small business owners make.

1)      Rushing, without Planning

A lot of the time we see business owners come up with new ideas or get too excited with expanding that they forget to plan the basics that can determine success from failure. Before you invest thousands on a new venture, keep in mind the basics that will help push your business forward.

Basics that should not be omitted include some of the following:

• Market Research -Understanding your target audience and the surrounding factors that can affect them will help you pivot your business to stand the harsh competition you will face. This can be a lengthy process and researching real-time data could give you a competitive outlook.

• Budgeting -Everyone starts from somewhere and sometimes you don’t need a lot of capital to get started. However, having a budget and allocating funds to absolute necessities will allow you to spend strategically and prepare you for success.

• Business Plan -The basics to your business should be planned out and determined prior to launch or expansion. Sometimes a business plan is even required when pursuing 3rd party funding.

• Legal Compliance -Having a business legally compliant is a no brainer. However, there may be simple things you’ve never thought of that could cost you thousands in the future. Example: Remember to be ADA compliant at both your physical location (handicap parking, handicap rails in restrooms…etc.) and your online website (option for alternative text, captions on videos...etc.).

2)      Trying to DIY Everything

As a business owner, you likely have talents unmatched by others. The entrepreneurship within you is a unique skill to have. You probably are capable of doing a lot of things by yourself. However, the DIY mentally will quickly stunt your growth.

To have a well-functioning and blossoming company, you need to allow it to have room to grow. If you do a lot of everything, you’re restricting your company’s growth to the abilities of one single person. There’s only so much one can do before reaching burnout.

Yes, you’d like to save money. However, hiring the right contractors and professional services are an investment to contribute to the success and growth of your company.  Finding the right help early on will prevent issues down the line and allow you to grow with better ease.

3)      Not Pricing Properly

Starting a new business or expanding to other locations brings up the question of what the best pricing would be. 

Undercharging will create a loss of potential profits and overcharging will lose clientele. Finding the sweet spot with how to price is a difficult but necessary step to take.

Here are a couple tips to help you nail the right price:

• Check out multiple competitor pricing strategies. You can do this while performing market research (which will help with other things listed above.) Getting an idea about why others price the way they do and why that makes sense for their quality/service offered will help you reach an idea of how your company will stand next to the competition. You may or may not be similar and if you’re not in the same pricing, what makes you different? Why?

• Dive into the numbers. A little budgeting goes a long way. If you need help, get in contact with a professional such as an accountant. Detailing the costs it will take to provide your product or service will be important. You must determine how much you need to charge to at least break even. Many fixed and variable costs exit. Fixed costs are things that will not change month to month such as your rent expense. Variable cost are things that could change month to month such as the shipping costs and materials purchased.

4)      Not Utilizing Contracts 

Early on, you may forget to think of this but contracts will help every party involved in an agreement. We are no attorney’s or legal professionals, but contracts are important tools that prevent problems down the line.

Word of mouth can only go so far. Writing agreements in person and having both parties sign will protect everyone who is involved.

Consider utilizing contracts for employees, outside contractors, vendors, and investors. Never sign without reading the entire document and always have open communication between yourself and whomever you work with.

5)      Not Tracking Expenses

Tracking expenses is major when starting or expanding a small business.

Having exceptional discipline doing this will save you headache down the line. However, we recommend (as noted previously) to not spread yourself too thin. Leave this to a professional and find a bookkeeper that will fit your needs early on. This will help you when you file your taxes and to gain insight periodically for business decision making.

Whether your company is at a loss or gained profit at the end of the year, you will benefit tremendously from having the expenses tracked and financials ready. Not only will this save you tax headaches and potential audit nightmares, but you have the data needed to plan your business decisions with the proper data. Budgeting and trimming unnecessary spendings will help your growth and management.

Whether you’re new in business or seriously expanding, it’s best to consider these top mistakes, to save you money and prevent costly mistakes we commonly whiteness.

Need help? Contact us today and speak to a professional.

What is the Meaning of Financials?

Financials are short for “financials statements.” Financial statements are the written records of a businesses’ daily transactions and activity, such as income and expenses, organized in a clear format.

Financials are important statements in which an accountant or accounting department will generate. These statements allow management to make strategic business decisions.

Common financials:

Profit and Loss Statement

Balance Sheet

The profit and loss statement are one of the most common financials. Other terms people use to refer to this statement include “P&L,” “Income Statement,” “Earnings Report,” “Income and Expense Statement,” “Statement of Operations,” “Statement of Financial Results,” etc…

The profit and loss statement details income and expenses of the company. The very last line is the “net income” also referred to as the “bottom line.”

Below is an example of a profit and loss statement that lists the general items you may find. Some companies can get more detailed. For example, depending on the size and complexity of a company, there may be various sources of income that they would like to specify. A clothing company may want to separate online sales vs in store sales. This idea of getting more detailed applies to expenses as well. For example, automobile expenses can be further broken up into “Auto repairs,” “Auto Fuel,” “Parking Fees” etc. The relevancy of these details is determined by the company and what they need to see to make better decisions.

Total Gross Income – Total Expenses = Net Income

You can remember the distinction between net income and gross income by thinking of gross income as “big/large,” and net income as the amount of money left after it “passes through” a net of expenses.

The Balance Sheet shows a company’s assets, liabilities and equity at a certain point in time.

This is an insightful financial statement because it shows the bigger picture of what the worth of one’s company may be, beyond the profit and loss statement. It will reveal the debt a company owes, the assets a company has -both liquid (easily accessible) and non-liquid.

When a company requests to borrow money, this statement will give the lender a better idea of how capable a company is pay back the loan.

The total assets will always equal the total liabilities and equity.

Assets = Liabilities + Equity

Altogether, the financial statements of a company reveal insights on profitability, liquidity and solvency. They help reach actionable insights to make better business decisions and help a business grow.

Need more help or clarification? Contact us and speak to a professional today.

Co-Owner Joins Executive Board of Local Non-Profit

New co-owner of V&R Associates, Thalia Hagopian, got elected to join the executive decision-making board of a local San Diego non-profit.

On February 4th, a formal community meeting voted for the 2024 executive board members and positions to manage the St. Sarkis Armenian Church, located in Del Mar.

Thalia earned the top votes to be elected into the executive board, called the Parish Council, and is one of the youngest known members to get elected into such governing body.

This board consist of 13 individuals who will volunteer for the next 1-2 years to manage all vital campus operations, growth objectives, community events, funding, marketing, and outreach.

On February 25th, all elected members had a small ceremony during the Sunday service to be sworn and blessed into this honorable position.

The responsibility to be part of this executive board is not taken lightly and is seen as a self-less act of dedication towards the community.

An elected member’s term is determined based of how many votes one receives. The higher the votes, the longer the term. Thalia’s term consists of a 2-year period (maximum possible) and will end in February of 2026.

Thalia claims she will be dedicating her efforts into the church’s marketing, PR, and growth objectives to increase community engagement and long-term involvement.

She stresses how important it is to remain close to her roots and enhance the Armenian community locally.

Our team congratulates Thalia for this respectful title and wishes her the best of luck!

Thalia getting blessed from the Very Reverend Father Pakrad on February 25th, 2024 ceremony.  

The Parish Council, post blessing ceremony.

The 2024 Parish Council -Thalia Hagopian is the 3rd inwards from the right side.

Different Methods to Pay Your Taxes: Known and Lesser Known

Table of Contents:

Can taxes be paid with credit cards?

Can taxes be paid in installments?

What are the most common tax payment methods?

What other (lesser known) tax payment methods exist?

What method is the best way to pay taxes?

There are many different methods to pay your taxes. Weather you’d like to or not, finding the best payment method for you might at least make the process of paying taxes a little more bearable.

Can Taxes be paid with credit cards?

Yes, the IRS does accept credit and debit cards.

However, we don’t recommend paying your tax liability with a credit card because you will incur fees simply to use a card for payment. Typically, people don’t want to pay more taxes than needed. So other payments methods may be better suited.

Additionally, there are limits and restrictions for credit card payments. For example, liabilities greater than $100,000 may have special requirements and employer’s federal tax deposits cannot be paid with card.

Can taxes be paid in installments?

Absolutely. Installment payments can be set up and often times desired for cases that have large liabilities due.

You may pick the amount and time of month to set up scheduled payments overtime.

We recommend if you pick this method, please check your bank account periodically to ensure the installment payments are occurring as agreed upon by the installment agreement that was set up. Double checking is helpful to ensure everything got processed smoothly and to avoid future complications.  

What are the most common tax payment methods?

Direct withdrawals also known as electronic fund transfers (ETFs) from your bank account is one of the most common methods to pay your taxes. (We see this the most out of all our tax clients.)

Paying online or with checks/money orders are also easy options a lot of tax payers utilize.

What other (lesser known) tax payment methods exist?

PayPal and Click to Pay are always methods you can use to pay your taxes.

You may also call and pay over the phone (contact info here ), however other methods may be easier and less of a time constraint. Calling the IRS can take various hours.

What method is the best way to pay taxes?

It’s completely up to you with how you feel comfortable paying your liability.

We typically recommend direct withdrawals from your bank account because it is the fast and easiest way to verify and ensure payments are processed. This will help you save headaches down the line.

Setting up direct withdrawals will also be recorded within your bank history, so if you get a letter in the mail about a liability that is overdue (that you already paid), you have a quick and reliable method to provide proof of payment. Oddly enough, we see letters like this more than you’d expect. The IRS makes mistakes too!

Bonus tip: If you also have a tax refund that you’re expecting, you will receive it faster with direct deposit set up. Often times, there are individuals who will get a refund from the state or fed and have a liability with the state or fed. With direct deposits/withdrawals set up, the refund can help you pay for the liability. This method is the most efficient way to verify receipt and payment. In return, it’ll help ease your stress so you can focus on better things in life.

Need help for any reason at all? Contact us today.

Taxes: A Brief Overview of the Origin and if You Need to File

Table of Contents:

What are income taxes?

What are our taxes used for?

Who collects taxes?

Are taxes voluntary?

What happens if I never file taxes?

Taxes might just be one of the most dreaded subjects in America. This article details some of the basics to taxes, what it’s for, how it started, and what happens if you fail to file.

What are income taxes?

Income taxes are ways the government lowers the public’s income (earnings) to fund programs that are meant to benefit the public.

Taxes are levied on both earned and unearned revenue. Earned income comes from salaries, wages, tips and commissions. Unearned income comes from dividends and interest. Both forms of income are subject to taxes for individuals and businesses.

What are our taxes used for?

Federal income taxes are used to provide national programs such as defense, foreign affairs, social security, and towards our United States national debt.

State income taxes are used for local programs such as parks, roads, and schools.

Who collects taxes?

The IRS collects taxes.

The Internal Revenue Service (IRS) is responsible for administering and enforcing the Internal Revenue Code.

The United States Constitution (Article 1) grants the government the authority to organize and collect taxes. The IRS is a bureau within the Department of Treasury.

Origins of the IRS root back to President Lincoln’s time in office when taxes were needed to assist with the Civil War. The Officer of the Commissioner position for the IRS was created in 1862 along with the establishment of a permanent internal tax system.

Are taxes voluntary?

No.

According to the IRS, the requirement to file an income tax return is NOT voluntary and clearly detailed in sections 6011(a), 6012(a), et seq., and 6072(a) of the Internal Revenue Code.

What happens if I never file taxes?

We do not recommend avoiding taxes by not filing.

If you owe taxes, you will only incur a greater liability with penalties and interest by avoiding to file.

Not filing taxes will result in a Failure to File penalty imposed by the IRS. This penalty is 5% for every month overdue and will not exceed 25% of your unpaid taxes.

The IRS will periodically send you physical mail with the imposed penalties and interest. This is typically a stressful process that is best avoided by filing on time.

If you are due for a refund, it’s only natural to want to file your income tax return.

Either way, filing your income tax return on time or with an extension is extremely important to avoid further complications down the line.

If you would like to “avoid” taxes by decreasing your tax liability, speaking to a professional tax preparer could benefit you to find ways that you may be legally eligible to utilize.

Need help? Contact us today and we’re happy to talk taxes.

When Can I Start Filing Taxes for 2023?

When Can I Start Filing Taxes for 2023?

The IRS has deemed January 29th, 2024 as the official start date for the 2024 tax season. Once the 29th hits they will officially accept your 2023 tax return.

As soon as you have your forms and paperwork organized, you can get a head start and be part of the 128 million tax returns the IRS expects by April 15th, 2024.

Early birds who have already received all the necessary documentation to file their return might be ready sooner than the 29th. That’s great and tax preparers around the world thank individuals as organized as such, however the IRS will not receive it until they officially open the window on the 29th.

We recommend taking time to ensure your return isn’t missing any important factors. Things like interest income, dividend income, stock income, mortgage interest, property taxes, donations and more shouldn’t be forgotten.

After all, the tax deadline, as always, is April 15th for individual returns.  

Important distinction: Business returns for S corps, LLCs, partnerships and non-profits are due March 15th.

In short, you can start preparing your tax return as soon as you have all your documents organized, however the IRS won’t officially accept your 2023 tax return until January 29th, 2024.

Need help getting your paperwork together? Contact us today and we’ll send you a free PDF checklist of everything you need as an individual or business owner to prepare for the upcoming tax season.