The Tax Man Cometh!
WOW, can you believe it is that time of year again!
The Tax Man Cometh soon!
Over the next few weeks I will be covering the 5 Tax Mistakes Small Business Owner’s MUST Avoid!
This week let’s take a look at Mistake #1: Not Using Electronic Filing Systems
In 2017, the IRS experienced a significant increase in the number of fraudulent tax refunds issued.
To correct this, a number of fail safes have been put in place, including a photo ID needed to file a return.
Another simple solution you could incorporate is to use the encrypted electronic filing systems the IRS, and most states, have available to you.
January is the month when all W2 and 1099 forms must be created and delivered to their recipients by the 31st of the month.
Again these forms can be sent electronically to most recipients!
Here are some steps that hopefully you took all year long to make this process seamless:
For all 1099 Contractors whom you paid cash or check in excess of $600 you will need to issue a 1099 form.
The information you need in order to do this is collected on Form W9.
A good practice is to collect these from your contractors at the time of engaging them.
Before sending your W2 forms, ensure your payroll filings all year long match the numbers that are showing up on your W2.
When changes have been made and the amended filings were not followed through with, it can become quite timely filing amending paperwork.
It’s also a good practice to annually review your employees W4 information for changes to address and or deductions.
If you find that this is the only time of year that you will actually look at your numbers, you are not alone.
The myth that feeds this type of action is that the only reason you have numbers is to file your taxes with, so of course now is the time of year you are doing it.
I’ll let you in on a BIG secret…
The power of your numbers is using them all year long to make decisions with.
When you have current and accurate numbers to make decisions with, you are able to course correct in the moment.
Looking in the rear view mirror in January is just interesting information to use to plan forward with, and it’s too late to make any changes to the previous year.
If you are ready to set yourself up to win in 2019, and you know that having the systems and structures in place for money management is a big piece for your success then be sure to stayed tuned for next weeks mistake and how you can avoid it!