COVID Funding Tips for Small Businesses
This is an important message if you have an entity that has a December 31st year end which includes, LLC taxed as a partnership, S corporations, disregarded entities and S corporations.
Since the tax year end is only a few weeks away it’s very important that you touch base with your CPA/accountant to see if there are any last minute tax planning strategies you should implement in December – not in January when the year is over and your chance to reduce your tax bill is gone!
Perhaps you haven’t done December tax planning in the past. That’s common because most business owners don’t pay for any tax planning and just show up to the CPA’s office the following year when the taxes are due. This is the MOST expensive approach because you can’t make retroactive changes.
By the way, if you’re not already working with a CPA/accounting firm we do have a good recommendation for you – but more on that in a minute.
For now, here are a few key end-of-year tax planning strategies you want to have in place:
- If you have an S corporation (or LLC taxed as an S corporation) did you have any payroll in 2013? If you only had distributions with no payroll that would be an issue.
- Are your books current with year-to-date profit and loss? That’s important because if your business is profitable there may be some end-of-year expenses you can use to lower your net profit and taxes owed for 2013. You can only do that if your profit and loss records are up to date.
- Have you properly documented all your deductions throughout the year as required by law?
- Even if you had no profits in 2013, will your books and accounting practices for the year be viewed by the IRS as a business or a hobby? They aggressively search for people trying to disguise personal hobby expenses as business losses on a “guilty until proven innocent” basis.
- If you’re outside the U.S. are you and your family adequately prepared for U.S. tax rates and tax treaties that apply to your country?
These are all important factors that can be addressed before the end of the year – with a potential for substantial tax savings. Are you working with a tax firm that’s fully supporting you in these areas? NOW is the time for an expert review of your business – it’s important to get these protections in place BEFORE the tax year is over! Plus, you’ll be in a better position for IRS compliance and tax savings going into 2014.
Here is our recommendation for a first rate source of end-of-year review support. When you contact them they’ll schedule an appointment, answer your questions about resources, fees and all the options they offer to help your entity stay in compliance with state and federal tax authorities.
My Recommendation for Tax Support:
Corporate Tax Network
Let them know you were referred by my company, Nevada Corporate Planners. The Corporate Tax Network has a team of over 50 tax professionals that are ready to help you file your business and personal tax returns. If you need support or simply have a question about your status, CALL IMMEDIATELY. The longer you wait the lower your chances of getting the support you need before the end of the year.
If you want the inside story on how to maximize your deductions for meals, travel, entertainment and other business expenses, please feel free to contact my company, NCP directly at 1 (888) 627-7007. Tax-saving and record-keeping solutions is just one of the areas where NCP can support you with a complete foundation for business success. We’ll be happy to answer an additional questions you have.
Take action NOW to make sure to capture every penny of tax savings you have coming your way before the end of the year!
Please accept my best wishes for a happy holiday season, a profitable finish for 2013 and a prosperous 2014.