Tax Services • Published 1/03/2023 Get Ready for Tax Season: 5 Steps to Take Now
 
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The tax season filing deadline will be here sooner than you think. With a combination of wide-scale business changes as a result of the pandemic and the introduction of the Inflation Reduction Act of 2022, businesses are facing significant complexity when it comes to planning for the 2023 filing season. We’ve outlined five key points below to help you navigate the basics and prepare for filing your business taxes.

1. Review and reconcile your accounts.

Double-checking information before sending it in can save you time and money. Identify any discrepancies or irregularities ahead of time to help reduce follow-up questions from your accountant. As part of this process, it is a good idea to reconcile your bank accounts and various liability accounts. This exercise could turn up additional deductions and lead to tax savings.

2. Fine-tune your fixed assets.

Review your capital fixed asset listing, such as machinery and equipment. This includes your current-year additions to fixed assets, as well as existing fixed assets from prior years.

  • For fixed assets added in the current year, determine if the new item falls under the safe harbor threshold currently in place for your business.
  • For existing fixed assets, determine if any items became obsolete or were replaced by new assets during the year.

3. Bring up the big changes.

Did your business experience a merger or acquisition? Did any partners or owners leave the company? Did any new partners or owners join? Did you expand operations into new service lines? These and other significant changes in ownership or business structure should be shared with your CPA as early as possible to smooth out the compliance process.

4. Inquire about state filing requirements.

If your business operations expanded beyond your home state during the year, you may face additional filing requirements. State and local tax laws vary widely from state to state. Identify the states where you do business, and your CPA can investigate whether activity in a state creates a filing obligation in that state. Be prepared to provide a breakdown of property, payroll, and revenue per state.

5. Consider new developments.

Changes made by the Inflation Reduction Act of 2022 may have an impact on your business in 2022. The tax treatment of these items may differ depending on the benefits and costs incurred, so thorough documentation will support your CPA as they help you navigate the changes and impacts on your business. Connect with your P&N advisor to discuss your organization’s questions, concerns, and unique situation.

With these five steps in mind, contact your P&N tax advisor today and get your business filing underway. Now is a great time to get started.

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