Spring Clean your Financial House
Five months into the new year, spring is in the air and some days of late, it has felt like summer. Most people have filed their tax returns, and some are on extension for various reasons. No matter if you have filed taxes or are planning on it soon, here are some ways to get your tax affairs in order in case they have become out of order.
- First and most importantly, file those current and prior year tax returns!
- Pay your estimates on time, maybe set them up on auto pay, or break them down into monthly payments
- Don’t forget the state tax returns and estimates as well
- Get your bookkeeping under control and caught up. I personally recommend hiring a bookkeeper so you can run your business better.
- Sometimes an outsourced CFO combined with good bookkeeping can be a valuable decision since they can help you stay on track with financial decisions and benchmarks
- If you owe, pay it and if you can’t pay it in full, get a payment agreement or possible Offer in Compromise. If you have to go on a payment plan, don’t think of it as a bad thing. Think of it as the IRS wants you to get back on track and they will let you payoff you tax debt over time. It’s a loan you have to pay cheap interest on, but you don’t have to go through bank approval.
These are just some of the things you can do to start getting your tax affairs in order so life can be more enjoyable.
Up Coming Due dates:
- second quarter estimated tax payment due.
- partnerships and S-Corps that were put on extension are now due.
- Third quarter estimated tax payment is due.
- Estates/trusts that filed an extension are due.
- Individual tax returns (Form 1040) are due for taxpayers who filed an extension.
- C-Corporation tax return is due for C-Corporations that filed an extension.
DON’T FORGET: Several years ago, we offered an IRS Transcript Monitoring Plan (TMP), and I spent this year revamping it and now I am offering it again, but much more comprehensive than in the past. With a signed Power of Attorney (POA), we can access your transcripts at the IRS and see what they see on a daily basis. The beauty of the TMP is that we will be immediately notified of any change to your IRS account, often before a notice arrives in the mail. If you have any questions about the program, feel free to reach out. This is a good program if you have current issues with the IRS or just want peace of mind
Ancient taxes from around the world
Taxes from England:
- Playing cards were taxed as early as the 16th century, but in 1710, the English government dramatically raised taxes on cards and dice. This led to widespread forgeries of cards to avoid paying the tax. The tax wasn’t removed until 1960.
- In 1660, England placed a tax on fireplaces. The tax led people to brick up their fireplaces to conceal them and avoid paying the tax. It was repealed in 1689.