Time to Start Thinking About Taxes Again
You may have already filed your taxes for this year and consider it all a distant memory. But don’t close the books on your taxes yet. Now is a perfect time to do some small business accounting and tax planning for next year.
If you found yourself writing a big check to the IRS, or you got a large refund, it is time to adjust your paycheck withholding, owner distribution or your quarterly tax payment. Remember the next quarterly payment is due July 15!
It is also a great time to consult with your CPA about the tax consequences of major changes you are planning in your life or your business. A new baby, buying or selling real estate, changing jobs or sending a child to college can all affect next year’s taxes. Do not wait for the November rush!
Set up a good filing system to organize your tax and business paperwork, so it will be simple to access when tax time rolls around next year. You should keep copies of tax returns you have filed and the tax forms package as part of your records. They may be helpful in amending already filed returns or preparing future returns. Normally, records should be kept for a minimum of three years, and records of real estate or stock transactions, IRAs and business or rental property should often be kept longer. Most professionals recommend seven to ten years.