I hope you and your loved ones had a wonderful 4th of July holiday in this, the greatest of all countries. Despite all the diversion, we have so much to be grateful for and so much more we can do as a country.
First of all, thank you for having the confidence in us again this year to prepare or assist you in filing your 2021 tax returns. A number of you still have not filed either your business nor personal tax returns. I encourage you to do it now in order to avoid any late filing or payment penalties.
I have returned from my vacation after the very busy tax season this year where we had many tax changes as well as a large number of new clients.
LISTED BELOW ARE ADDITIONAL THOUGHTS ON PLANNING FOR THE 2022 TAX SEASON. MORE CHANGES ARE IN THE WORKS. LET NO MAN RELAX AS CONGRESS IS IN SESSION.
Here are a few suggestions:
All of the tax changes and laws from my year end 2021 newsletter remain the same at this point
If you are scheduled to make estimated tax payments for 2022 make sure you make them on time. If you need to make changes or are unsure, please contact us for assistance. Make sure you keep track of what tax year you are making the payments for. Indicate what year on the check and put your social security number on the check
You are required to file a reasonable tax return, not a perfect tax return. Keep track of your income and expenses while reconciling your bank accounts each month for accuracy. If you do not have a system in place for your accounting, purchase some accounting software to help you
If you own a business you must have a Balance Sheet in addition to your Profit and Loss Statement. Especially if you are an S corporation or partnership
If you have a retirement account, try to invest money in this account each month to help reduce your tax liability and save for later in life. Dollar cost averaging is a good way of maximizing your returns. Although the market is down right now, you can purchase shares at a lower cost
If you do not have a financial consultant for planning, think about hiring one for your personal accounts
Prices of stocks right now are very low and attractive. If you are undecided or confused on what to do, then there is more need for assistance
If you have a spouse or significant other, please keep them abreast of where your financial records are located and how to access them. I can't tell you how many times over the years there has been a lot of frustration and difficulty in trying to file tax returns when one party does not know where the documents are located.
Take responsibility for your actions. Be honest when filing the returns. Make the best guess as to amounts and keep in mind they should be reasonable but supportable positions. We are here to help you with your planning and questions. Please contact us at 310-374-8832.