written by Barney Whitlock
Business leaders are masters at planning. They like to know where they’re going, how they’re going to get there and when. They don’t want, nor like surprises. They plan cash flow, they plan inventory levels, they plan for capital improvements, they plan personnel needs, promotions and transitions, and they plan the tax reporting process. They even plan for their periodic planning meetings. When it comes to planning the annual income tax filing process, here are the steps the good planners take.
- Approximately one to two months prior to the end of their fiscal year, have a meeting with the people responsible for preparing the required returns. Discuss new tax laws and regulations that will affect them in the current year as well as in future years.
- Next, discuss steps to be taken prior to the end of the year to minimize taxes or perhaps optimize over the current year and the following year. The meeting should provide a clear picture of their tax obligation not only for the current year but also the following year.
At that meeting, dates are agreed upon as to;
- When tax records and books will be ready and available for the preparer.
- The date by which the return will be prepared and ready for review and signature. Note: This date should be two to three weeks prior to the filing date. If it is less than two weeks prior to the filing date, the return should be extended in order to minimize last minute rush errors.
- The date by which the electronic return is submitted.
A little planning can go a long way. Please contact us if you have any questions about tax planning 417-881-0145.