TAXES, TAXES, AND MORE TAXES

Does tax season make your skin crawl? When the looming dates of 3/15 and 4/15 approach do you get all squeamish and want to hide in a dark cave? Or is this just me…. Well fear no more! We have a tax expert on this episode who is going to make your life easier and share exactly what you need to do to properly prepare for tax season. Meet Brittany Ferguson, CPA at Profit Matters and an expert in filing taxes. Brittany has amazing advice that is going to help you welcome tax season and not want to run away!

Listen to the full Episode 16 HERE

Let’s break down what we learned from the episode: First things first, tax deadline to file for a business is March 15th, and for personal April 15th. Extension dates: Business- September 15th and Personal-October 15th

 

What does an accountant need to file your taxes? Let’s begin with an individual:

  1. All W-2’s 
  2. Any 1099’s for income or from investments
  3. Any K-1’s from when you invested in a company
  4. Mortgage Payments
  5. Any payments to charity–letter from the charitable organization
  6. Any capital gains or losses from any sales–did you sell your home?
  7. Anything foreign, if you invested in anything foreign, or have foreign income or bank accounts

 

What is the worst thing someone can do to a tax accountant?

  • Go to your tax accountant on 4/14 and say “here is my tax information. I want to file on time” Newsflash, 4/15 is the deadline…not going to happen. DO NOT DO THIS!!
  • Find a tax accountant on 10/14 and say “here’s all my paperwork, I don’t know anything” that just seems silly! Don’t do this!!

You may avoid using an accountant because they ask you so many questions and it causes you anxiety, they do this for a reason, and here is why:

  • They want to compare your filing to your previous year
  • Accountant may ask you a question and you give an answer that is unclear so they will ask you in a different way…they need more clarification
  • Sometimes your answers lead to holes that accountants need, so their questioning is extremely beneficial
  • In turn, ask your accountant ALL the questions. They welcome questions and it is only helpful to them. No question is a silly question!

 

What would cause a person or business to get audited?

 

  • If you have major changes from the prior year as in an extreme difference in expenses
  • S-Corp with no payroll wages in owners’ compensation (need a refresher on S-Corp…click right here!
  • You check the box that you had to file 1099’s, but you did not file any 1099’s
  • You did not pick up a W-2 on your 1040
  • Some helpful advice, Do not try to organize everything for your tax accountant. Don’t wait and compile everything. Give them any document as it comes, you are paying them to organize and they will do it correctly. You most likely will receive tax information by January 31st for individuals, start giving your accountant any information on 1/31

 

If I were you, I would save this episode, star these show notes, keep them in your back pocket because this is loaded with helpful information! A huge special thanks to Brittany Ferguson for joining us on this episode. Please, please take a minute to download, share, leave a review! We are beyond grateful to all of you.

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