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Accounting and Bookkeeping, Tax Advice

Tax Preparation 2020: No Time Like Now to Make next Year’s Returns Easier

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Tax Season 2019 is over.

Yay!! Taxes are filed! Time to party and enjoy life until next April, right?

Wrong.

Well, yes, you could procrastinate doing your tax preparation like millions of other Americans. Out of sight, out of mind. That works for some folks, but not for others. Often, that means delaying the inevitable. You hope that the mistakes you made on your returns will not be repeated next year.

tax returns AK Burton

There is a better way. Here at A.K. Burton, PC, we specialize in helping our clients tax plan. Even if it seems overwhelming and you don’t know where to start, we are here to help you. We can help prepare now, this year, to get your tax plan in order and get ahead of the game. Here are several ways you can prepare for next year’s tax return now:

  1. Plan your tax write-offs: You have old equipment (mowers, tractors, espresso-makers, computers, cars, etc.) that needs to be replaced. Now is the time to plan on purchasing that equipment to use in your business. However, before you purchase the new equipment that is high-dollar, check with your financial adviser on the tax benefits of the items.
  2. Set up estimated tax payments: When you filed your 2018 taxes this year, your accountant may have advised you to begin paying your estimated tax bill for 2019, now. Depending on your 2019 projected income and withholdings, your accountant may give you estimates for federal, state, and local taxes. Pay attention to your payment options.  For a federal estimated payment, you can register and pay online at www.EFTPS.gov or you may have the option of sending payments by direct mail. You may be advised to pay monthly or quarterly. Paying ahead and lessening your burden (or erasing it altogether) by April 15, 2020, is a guaranteed way to get ahead. If you need to generate estimated payments for 2019, AK Burton PC provides this service.
  3. Make changes to your withholding: If you had a child, got married, got divorced, adopted a child, purchased a home, or made other life changes, you may need to adjust your withholdings from your pay. If so, file a new W-4 with your employer. Many of our clients seek our advice on this topic. Choosing the wrong number of allowances can lead to an unwanted surprise when filing your taxes.
  4. Give more to your 401k: You may not be working all your life. You may have plans to retire one day. If so, then put more money into your company or private 401k account. You can contribute up to $19,000 each year now, excluding catch-up contributions. If you’re interested in maximizing your retirement and minimizing your tax liability, A.K. Burton, PC is here to help you.
  5. Re-examine your business structure: “Business as usual” is not always a smart strategy. Becoming an LLC, S or C Corporation may be an upgrade that you need. Check with your tax adviser for the designations which may benefit your tax strategy. At AK Burton, PC we take the time to understand our small business clients and maximize tax strategies such as restructuring.
  6. Stop procrastinating! Whether your business has just begun or has been around for several years, there are evolving tax strategies to consider. Stop procrastinating and make the changes now. It takes time, and you may have to make some adjustments. But in the long term, it will be worth it for you, your business, your clients, and your family.

Here at A.K. Burton, PC we specialize in tax planning and strategies. We provide the services that our clients need in an ever-evolving work and regulatory environment. It is our mission to use our expertise to help our clients achieve the best results possible for their unique circumstances.  Today is the day to begin that strategy. Contact one of our tax advisers at (301) 365-1974 or email us at info@cpa-maryland.com. We serve the Bethesda, MD and the Washington, D.C. area.

Tax Advice

Satire Alert: The IRS is On Its Way or How to Really Mess Up Your 2018 Income Tax Preparation

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You have read many blogs and articles, here and elsewhere, that give you steps 1, 2, 3, etc., on how to save money, pay your tax bill, incorporate your business. They all have tried and true advice which you may have used in your business and personal finances.

Blah, blah, blah…

We know that they can all be boring after awhile. So, to break up the boredom of your typical “How-to” finance article, we are going to offer you a satirical,  tongue-in-cheek Guide to Messing Up Your 2018 Income Tax Preparation:

  1. Don’t organize any of your documents: Be sure to pile them in a shoebox, willy nilly, with absolutely no organization whatsoever. Make sure they are ripped, have nothing noted on the receipts and are the wrong year.
  2. Forget to include statements: Credit cards, payroll, expenses. They are so much trouble to print.
  3. Travel expenses mileage: Don’t use mileage records during the taxable year, just make up a mileage number! It’s just fuel after all.
  4. Write all your contractors expenses on a piece of paper: Instead of submitting contractor expense receipts, just use a notepad with amounts on it. No dates or receipts needed. Too much trouble!
  5. Don’t ask for any receipts for donations to non-profit/charitable organizations: Donations are just a nice thing we all do. Sure, you may owe less to the IRS if you accepted them or kept them, but you did it for a good cause. Who needs to brag about it, after all!?
  6. Turn in all your tax documents to your accountant on April 14: Everyone is so persistent in getting the tax filing postmarked by April 15, Tax Day. That is so arbitrary! Besides, your accountant is working 24 hours a day anyway, from January 1 to April 15. They won’t mind one more client bringing their files in at the last minute. They should be happy to be doing your taxes, anyway. It’s job security, right? Be sure your shoe boxes have your last name and phone number on them.
  7. Argue with Your Accountant over their fee: Your accountant is charging that much per hour to add up numbers? Good grief that is highway robbery. All they need is a calculator and number two pencil and they got it made. Make sure they know you can do it better and be late in paying the bill.
  8. Forget to pay the IRS bill: They had the temerity to charge you even more after you have paid them all year from your paychecks!! You’ll show them. Yeah, pay late. That will scare them. Mean old government agency.

Now, do you feel better? Actually, no. This was after all, satirical,  tongue-in-cheek blog not meant to be taken seriously. You should do EVERYTHING OPPOSITE to what you read above.

After all, there are serious legal complications if you fail to comply with the tax laws. The IRS has an ITA (Interactive Tax Assistant) online which can help you with some legal questions you may have.

In fact, the best tax advice, besides doing exactly opposite of 1-8 above, is to contact our A.K. Burton, PC offices in Bethesda, Maryland. Our experienced and licensed tax lawyers and accountants can answer all your questions and also assist you with your income tax filing preparation. We serve clients in the Washington, D.C., Bethesda, Maryland and Northern Virginia region.