Year end is a crucial time for a company. The books area getting ready to close, and the taxpayers have to be aware of crucial steps they have to take before the clock strikes midnight on New Years Eve. While most tax advantageous avenues, like pension plans, have time until tax returns are due, when it comes to maximizing on business expenses and legally minimizing taxable income of a company, time is of the essence. Companies that carry inventory or products for sale may want to buy some stock ahead of Dec 31 to increase expenses. You pay want to prepay advertisement, subscriptions or other expenses that may have been due in January, to take the expenses in the current year. Payroll is important too, are you paying yourself enough and what is your salary/dividend/loan-to-shareholder ratio? With increased scrutiny from the IRS, it's important to know how much is too much or too little. Paying some payroll tax now is far less expensive than taxes, interest and penalties later, if your dividends get reclassified as payroll by the IRS. This can be quite painful...
Your accountant and/or tax professional will know the little things to look for and steps to take in time to ensure you're all set when tax time comes.
Happy Holidays!
With wealth of tax information found everywhere on the internet, my blog is intended to simplify, not to add to the confusion.
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About Me
- Natalie Kiser
- Winchester, California, United States
- Experienced tax professional with accounting and bookkeeping expertise, capable to consolidate all services essential to the clients in one place - bookkeeping, accounting and tax preparation - in a convenient and cost effective way.
