
With the arrival of tax season, there are many things for business owners to take into consideration as they being preparing their 2024 filings. Whether looking for ways to reduce one’s tax liability or perhaps making preparations to be ahead of the game for next year, it can be a tricky road to navigate without the help of a tax professional. To find out more, we spoke with some accounting experts from the area to get their insight on how to best handle matters strategically and effectively.
Is there anything on the horizon that business owners should start paying attention to now to be better prepared for the future?
“In general, the Tax Cuts Jobs Act (TCJA) changes from 2018 are scheduled to sunset on 12/31/25. Given the new [presidential] administration is the team that instituted these changes initially, there’s no way to know yet if these will be extended or changed going into 2026. For now, a good strategy would be to continue through at least the first half of 2025 presuming that there will be no material changes. I think everyone’s ‘crystal ball’ is a little dusty until we hear more.” --Kirsten Toler, KMT Consulting, LLC
What’s the best advice you have for business owners heading into the tax filing season?
“Remember that your extension to file your federal tax return is not an extension to pay. So, if you are filing an extension for your 2024 return, be sure to pay your taxes due for that return by April 2025. You need to pay 90% of the tax you owe for 2024 or 100% of the tax you owed in the prior year. … Also, remember to have withholding or pay estimated taxes on things like gains on stocks or large dividends, or interest.” --Jo-Ann Weiner, J. L. Weiner and Associates, LLC
How do you help clients who have a hard time navigating the complexities of dealing with the IRS?
“The tax law, regulations and procedures are very complex. More than ever, it is recommended that clients have experienced representation to navigate a reasonable solution that benefits them. Having worked at the IRS for 35 years, I know how to work within the government systems to arrive at reasonable, achievable solutions for clients. Whether it’s an appeal, an Offer in Compromise, a lien subordination, an installment agreement, a partial pay installment agreement, an innocent spouse or an injured spouse, there is always an answer to be found.” --Jo-Ann Weiner
Are there certain tax consequences associated with having employees who work remotely?
“This seemed to be a trickier issue during COVID, when so many employers had no choice but to have employees work remotely. In the years since, states have become more aware and their review of nexus, or the location of workers, has been noticeably more heightened. The best way to avoid potential issues is to determine the rule in the state where the business is located versus where the employee works. Some states allow for reciprocity, so there is no real tax consequence to manage. Some states are strict in enforcing the employer’s location as the location of work, regardless of where the employee sits. Determining what rules apply to whom is really the key to managing consequences proactively.” --Kirsten Toler
Planning ahead
Tips from the IRS to help make tax filing easier
Create or access your account information at IRS.gov/account
Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to delays that slow your refund and may also help you find overlooked deductions or credits.
Check your individual tax identification number (ITIN)
An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return.
Get an identity protection personal identification number (IP PIN)
An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using your Social Security number or Individual Taxpayer Identification Number. It’s a vital tool for ensuring the safety of your personal and financial information.
Make sure you’ve withheld enough tax
Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment.
Get banked to speed tax refunds with direct deposit
The fastest way for you to get your tax refund is by filing electronically and choosing direct deposit. Direct deposit gives you access to your refund faster than a paper check. Get your routing and account number by signing into your online banking account or contacting your bank.
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Published (and copyrighted) in South Jersey Biz, Volume 15, Issue 1 (January 2025).
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