When Should Business Owners Start Mid-Year Tax Planning? [Ask a DHJJ CPA Episode 8]

Emma

Welcome back to Ask a DHJJ CPA, the podcast where real CPAs answer real questions from business owners.

I’m your host, Emma Yurchik.

Today, we’re talking about something that tends to sneak up on people every year, mid-year tax planning.

A lot of business owners mentally move on after tax season ends in April, but July is one of the most important checkpoints of the year because there’s still time to make adjustments before year-end.

We’re also going to talk about IRS notices because this is the time of year many businesses start receiving them, plus IRS scams, fraud trends, and why IRS online accounts are becoming increasingly important.

Joining me today is Angela Adams, a Senior Tax Manager at DHJJ with more than 10 years of experience and a master’s in professional accountancy.

Angela focuses on strategic tax planning beyond just compliance, helping clients think through both short-term decisions and long-term tax impacts.

She works closely with corporations, multi-state tax matters, high-net-worth individuals, business owners, and family groups, and is passionate about building strong client relationships and helping clients stay proactive throughout the year.

Angela, before we jump into today’s conversation, I’d love for you to introduce yourself a little bit more.

 Talk about your role at DHJJ, what your day-to-day looks like, and the types of clients you work with.

Angela

Thanks so much for that introduction, Emma.

I’m really happy to be here and excited to talk through this with you.

I’m actually new at DHJJ, so I’m newer to the firm, and I’m really grateful to have this opportunity to be able to speak and have people get to know me a little bit better.

As you mentioned, I love working with individuals who own businesses, especially family groups, maybe a family that’s been in business together through different generations, and being able to be there to help them with their business development and tax planning goals.

So, like you said, my day-to-day really is a lot with working closely with clients and prospective clients, helping them as they make big business decisions and how that affects their tax picture.

I have started a little bit more of a specialty with multi-states because that just helps widen the picture even more.

There’s a lot of state compliance as well that gets brought into it, so being able to consider that as well while working closely with clients.

I’ve also been doing a lot of tax research, especially since joining the firm.

I’ve been doing a lot of tax articles on recent tax law changes.

So that’s been really helpful with working with clients too.

Emma

Absolutely. Well, I’m super excited to have you on today and ready to jump in.

So let’s start with the big picture. Tax season is technically over, but tax planning season really shouldn’t stop.

So why is July such an important checkpoint for business owners?

Angela

Yeah, I think July is such an important checkpoint because another time people usually touch base is maybe at the beginning of the year where they’re getting everything ready to do tax filing, and I look at that a lot like a New Year’s resolution.

People don’t really know exactly what to expect during the year.

They have maybe a lot of plans and hopes for what’s going to happen, but they’re kind of just predictions.

And then, similarly, at the end of the year, or I guess on the opposite end, at the end of the year, you have a pretty clear idea of how the year went, but you have little room to really make any changes or talk through any maybe strategic decisions that you were going to make within your business.

So July or summertime is really a perfect sweet spot in between, where enough of the years pass where you have a good idea of how you’re doing income-wise and a clearer picture of any kind of changes or different decisions that you’re going to want to do before the year’s up.

Emma

Absolutely. Now, from what you’re seeing right now, are most businesses tracking close to those projections this year?

Angela

If businesses are tracking closely, it’s really hard to say.

I feel like there are always volatile changes throughout the year.

Like I said, it’s similar to a New Year’s resolution with what you might think is going to happen at the beginning of the year.

Things are always changing. It really depends, and I think that’s another reason why it’s important to check midway through the year to see where you’re at.

A lot of times, business owners, even if they’re doing really well, sometimes they get distracted with that, and they think they could do the tax planning later on because they just get really caught up in expanding or just like what’s going on with their business, especially if it’s taking off.

But that’s really a sign that maybe you should slow down and, at least see where you’re at before things get too far in the year.

Emma

Yeah, definitely. And when businesses hit that midpoint of the year, I imagine there are usually a few surprises that start popping up.

What are some of the biggest surprises businesses tend to run into mid-year?

Angela

I think some surprises mid-year are that maybe what you were projecting at the beginning of the year as far as profitability, whether it’s good or bad, could have really made a big change for what you had originally thought, for, I mean, an infinite amount of reasons, things could be going differently.

I think a surprise people might have when they check in mid-year is that there have been tax law changes.

So maybe something that you thought last time that you spoke with your CPA in a plan that you had actually had drastically changed mid-year.

So you could have been planning or moving forward with something that actually has had a different tax impact.

So checking in to see if there have been any changes, I think, could help eliminate some surprises.

Emma

Absolutely. And I have a feeling that is probably a little underestimated.

You know, we think about, okay, what’s happening internally with the business, but there are external factors that are absolutely going to impact that tax planning.

Do you see any issues that come up kind of over and over again?

Angela

Yeah, I think a common issue that business owners should be aware of is bringing in your CPA for pretty much most of your business decisions.

I think a lot of people, a little bit like I mentioned, they get caught up in business doing well, and maybe they’re expanding, or they’re trying to change operations.

They’re going into different states or changing inventory.

I mean, there are countless things that you could be changing in your business.

I think people would be surprised that a lot of those have tax implications.

So I think, you know, a surprise owners might have if they don’t meet at the end of the year is realizing that they made a decision that does have a tax impact, and they didn’t get a chance to talk it through or plan through it, and maybe another decision would have been more beneficial for them.

Emma

Yeah, I think a lot of business owners assume they’ll deal with the planning later in the year, like you said, but waiting too long can really limit those options.

So what planning opportunities start disappearing if people wait until Q4?

Angela

So planning opportunities that can disappear if you wait too late in the year is if you’ve already kind of made certain business decisions.

For example, one this year that kind of can relate to businesses.

It’s small, but I think it impacts a lot of common businesses, is the meals and entertainment.

That’s something that had been formerly 50% deductible, mostly like if you had been providing meals for your staff in the lunchroom.

Maybe you do weekly lunches, or if they stay overtime, you provide meals.

That’s something that’s no longer deductible.

So if you went to the entire year expecting it to be, that can affect cash flow, profitability, or just be a surprise at the end of the year that that’s no longer deductible.

Another, I think, surprise people have is owing money.

I think that’s another big reason people check in mid-year, besides just like strategic planning or, tax law changes, just simply the fact that you might owe estimated payments throughout the year.

And if you wait until the end, you could have a big tax bill.

That is always something that catches people off guard.

And then even if you do end up with a tax bill at the end of the year, you could still have a penalty on top of that for just waiting so long, because technically you’re supposed to be making payments throughout the year.

So even just for that, I think it’s important to check and see where you’re at.

Emma

Are there any conversations that you wish businesses were having now instead of in November or December?

Angela

Absolutely.

Like I said, I think checking in to see where you are in the estimate, so there are no surprises with overpaying or underpaying.

And then if someone would reach out, I think ideally a client would reach out mid-year.

They’d have their year-to-date income already there, so we can see a big picture of where they are and where they are compared to last year.

Touching base to see any kind of plans that you have for the remainder of the year with your business.

And that could really be anything.

I mean, if you’re looking to expand operations, you’re adding new employees, you have a new storage unit, I mean, it really could you’d be surprised.

So just kind of touching base to see these are my plans for the remainder of the year and seeing if there are any tax law changes that might affect them with these changes, I think would be an ideal mid-year conversation.

Emma

Yeah, absolutely. And sometimes the bigger issues aren’t even the obvious ones.

So what are some silent problems that businesses don’t always notice until year-end?

Angela

Yeah. This one, it could be a little bit more surprising.

So sometimes, as I said, business owners get distracted by their business doing well.

They’re increasing their volume. They’re expanding operations. They’re very excited about all that.

But then, on the flip side, some businesses are maybe doing less than they thought.

Maybe business is slowing down. Maybe their income wasn’t as high as it was going to be.

So for that reason, maybe they’re not reaching out to their CPA because they’re like, I’m not making any big changes.

I’m not making big money. So I don’t need to reach out.

But that’s something that I think could kind of sneak up on you because a couple of reasons.

I guess one could be that you may be overpaying in taxes.

So if you haven’t let your CPA know that maybe operations are slowing down or profitability is not as good, you may be getting paying estimates based on your prior year taxes, so you could be overpaying.

And if you’re already like not doing well in cash flow, it’s important to make sure you’re watching where your money’s going and not giving more to the government than you have to.

Another thing that I’ve seen over and over at year-end in similar situations is that people have big losses on their business.

And that sounds great.

Everyone be like, oh, deductions losses.

That’s great.

I don’t owe taxes.

But the thing is, sometimes you can have too much loss, and you can’t even utilize them.

So, if you’re, if you have a huge general well, you might not be able to utilize that tax year.

And that’s another reason why being close with your CPA and seeing the big picture is really important, because it’s not just one year; it could affect multiple years.

So if you’re a business that has a big loss and you’re expecting to be able to take that on your tax return, you might not be able to.

You might be limited for a variety of reasons.

And then that might be another reason to maybe slow down on something.

So if you’re already having a big loss, maybe you should wait on purchases or wait on certain aspects of your business.

So even in those cases, I think it’s really important to talk with your CPA because I think that’s a surprise when people think they have a big loss and, oh, I don’t worry about anything.

And then it ends up actually being a big tax effect at the end of the year.

Emma

Absolutely.

I think, first off, incredible, incredible advice that you’re giving here.

I think this is very valuable, and I appreciate all of your insights on this.

It really sounds like the businesses that stay proactive now have far more flexibility later and far fewer surprises at the end of the year.

I think one of the biggest themes here is that waiting really limits your options.

So, for someone listening who maybe hasn’t looked at their numbers since filing season, where should they start?

Angela

What I would recommend for somebody right now, mid-year, steps to take would be to print a financial report, try to have those as accurate for as close to the year as possible.

So you might not be able to have them all the way through June or July, but even having April, May as close as you can during the year is helpful.

And if you could print a two-year comparison, that would be very helpful for your CPA, but also to you to see where you’re actually lining up.

Because a lot of times things might feel more or less, but until you actually look at the numbers, you might be able to find a lot more insight on that.

So I think that’d be very helpful for you.

And then also help eliminate a lot of back-and-forth questions with you and your CPA to print one of those reports.

And then touch base on any kind of business decisions that you might be having for the remainder of the year.

And don’t limit those.

Don’t think that, oh, this is too small.

Like, you know, I’m buying lunches for my staff.

I don’t have to talk about that.

No, I would literally talk about everything.

And just one other little piece, as I had kind of brought up earlier, is having these different state implications.

Something as small as Chicago, like the Chicago jurisdiction, they have some of their own taxes just for being in Chicago.

They have this new Chicago lease tax.

So, for example, you’re trying to have a storage unit and you

purchase one in Chicago, you could be subject to a whole other lease tax for having it located in Chicago.

Or maybe if you just went outside to one of the surrounding suburbs, you could have avoided that.

So I would literally talk through business plans as if they’re just another business resource for you with your CPA.

Emma

Absolutely. And I love that you’re highlighting.

It’s even the small, almost mundane things that you wouldn’t think of.

Mention it all.

You know, and if you had to narrow it down, what are three things that every business owner should review before August?

Angela

I would definitely, I think business owners should review before August, would definitely be some kind of financial picture in comparison to last year.

I think really looking at numbers, numbers don’t lie, being able to look at numbers really helps give you a clear picture of where you’re at and kind of what options you have going forward.

Like I said, if you have a lot of losses, you might be limited in those.

So you may not want to pile in deductions in a year like that and save them for a more profitable year.

Another thing that they should look at is how the rest of the year looks.

What are your goals for the remainder of the year?

I think, kind of mid-year, you have a good idea of what you want to do, so looking at that.

Taking a moment to really think about the next year, too.

So the final thing I think business owners should consider is also thinking about the next year.

So there’s already tax law talk and changes coming about for 2027.

So, you know, I think that should definitely be part of the picture in the conversation because whether you’re profitable or at a loss this year, we might help to push things to next year depending on your business goals.

Emma

Yeah. Absolutely.

I mean, again, all of these tips have been so helpful.

I do want to transition a little bit into another thing that tends to happen this time of year, and that’s that businesses are starting to get these IRS notices in the mail.

And for a lot of people, that immediately creates panic.

I think people see an IRS envelope and automatically assume they’re being audited or something is seriously wrong, but that’s not always the case.

Is this just the IRS catching up and processing returns, or are there certain triggers that tend to generate these notices this time of year?

Angela

Yeah, I think it’s a little bit of both.

Definitely, after tax season is when you’ll get an influx of notices because they’re processing returns and generating them based off of that.

Are there triggers?

Yes, absolutely.

That can generate a notice, of course.

I would say

The most common and obvious would be if you received a tax form, you know, maybe a 1099, W-2, any kind of official tax form and you didn’t report it on your tax return, that’s an easy red flag that the IRS is definitely going to probably adjust your return on their own and send you a notice for that.

Some other red flags are inconsistencies with the prior year.

So if maybe you had an accounting change or a big swing in one of your income or expenses, that’s something that can also potentially trigger an IRS notice.

Something else that I’ve seen that business owners, I think, should be aware of is putting too much in a general category.

I had this one client who they put most of their expenses into like a miscellaneous other expense account, which I think a lot of maybe smaller type businesses who don’t get into all the details or maybe don’t have an accounting bookkeeper handling things for them, they might just put things into like a miscellaneous business expense, and this particular client had their highest expense in miscellaneous, and that actually generated an audit for them to kind of support everything that was in there.

So try to be thorough and be careful with those miscellaneous other expense accounts.

Emma

Yeah, absolutely.

You know, you’ve definitely highlighted a few here.

What do you think the most common notices that businesses typically receive?

Angela

I’d say the top two most common notices.

First is going to be an adjustment on your return based on maybe they have, like I mentioned, some kind of official form, like a 1099 or something, that was submitted to the IRS that wasn’t reported on your tax return.

That’s very common for there to be an adjustment for that.

And a lot of times, the notice is just alerting you that there has been an adjustment and that they have already handled it on their end.

And then the other most common one, and probably I’d say that the most common one I’d say is the IRS, is usually looking for support for something.

So they’re typically- there’s something on your return, and they want the support for it.

So I’d say that’s usually the most common thing is that they’re trying to clarify something.

Emma

Do estimated payment issues come up a lot?

Angela

Yes, definitely.

And that kind of ties into our first section of why it’s important to touch base mid-year.

So estimated payments is another common notice you get, and they could be just assessing a penalty and interest for either not making any estimated payments during the year or waiting until the end of the year to make one big payment, which isn’t fun to make one big payment.

And then to also have penalties and interest on that makes it even less fun.

So it’s definitely common to get a notice on estimated payments where they’ll be assessing some penalties and interest.

Emma

Got it.

You know, I think the emotional reaction that people have to getting these notices is, it’s like what gets people first, right?

So what’s the biggest mistake that people make when they receive a notice and maybe have that emotional reaction?

Angela

Yeah, I think the biggest mistake people make would be to just pay whatever it says, you know, take a breath, pause.

Like I said, a lot of the time the IRS is looking for support for something on your return, but they’ll also put in a balance due in case you don’t have that support.

So don’t just pay it because chances are you probably do have support for that number.

It’s why it was on your tax return in the first place.

So I would definitely pause.

Don’t just pay anything because it came, like I said, the notice could be just asking for support.

They put a payment there because they’re hoping that you pay it, but also just in case you do not have support, they’ll assess a balance.

But if you do, you don’t owe it.

And then also just another tip, I guess, is even if you do owe the money,

Again, pause because there are probably, possibly penalties and interest associated with that payment.

And if this is the first time you’ve ever gotten a notice, chances are you don’t have to pay the penalties.

A lot of times, the IRS will forgive a first-time offender without penalty.

So, you know, that’s just another area to consider, that even if you do owe the money, maybe you don’t need to pay the penalty.

So I would pause and then consult your CPA before you make any payments.

Emma

That is so good to know.

And it sounds like it’s important to stay calm, understand what the notice is actually asking before reacting or taking action right away.

So, because some notices sound like routine and others maybe not so routine or need quicker attention, how can businesses tell the difference between something more routine versus something more serious?

Angela

Well, I would actually caution people for notices that seem very serious.

A lot of the times, if you’re receiving something that seems very urgent, very serious, it could not even be a real notice.

There’s an increase in scams, and I know we’re going to talk a little bit more about that, but I would be cautious of anything that seems very urgent or serious, because there’s usually always some kind of grace period or possibility to respond or, you know, give a response to any kind of notice.

So usually things don’t seem that urgent.

So one way that you can determine if it’s serious or not would be to confirm that it’s real.

And a lot of ways businesses can do that is if you have either an IRS login or a state login if it’s a state notice.

So I would log into your account and confirm that there’s some kind of correspondence related to the notice there before you react or respond or pay anything.

Emma

Got it. So when do you think someone should call their CPA when they get these notices?

Angela

I think you should call your CPA if you ever feel like there’s a question.

I mean, it depends on your CPA, but I have a very open-door policy.

If it’s something you’re questioning, it doesn’t hurt to just run it by your CPA.

Hopefully, that could be like an easy conversation.

So I think if it’s something you feel like you’re not sure of, that’s enough reason to reach out and just ask.

I think a lot of people would just be willing to help, help make sure that you’re guided the right way.

And another thing that’s been happening with the IRS and states with notices is that they get mismatched a lot of times.

Yeah, so the IRS, you know, a lot of people know that they do like a big hiring and that’s because they’ve been backlogged, the IRS and states as well.

So a lot of them aren’t getting to process things as quickly.

So you might receive a notice and respond to it, and receive another notice before they’ve ever processed your first response.

And similarly with the IRS or states, a lot of times they might coordinate, but now with the backlog and kind of slowing to processing, a lot of times they don’t.

So maybe you settled something with the IRS, but now the state’s reaching out to you because they just haven’t crossed paths yet.

And I think A lot of times when that happens, it might be helpful to get on the phone and kind of iron things out.

And again, reach out to your CPA because it could get stressful with, We responded and now I received another notice.

Then you call and they say, Oh, we sent that before we processed this response.

So there is a lot of timing and processing involved too, which could be affecting why you’re getting notices.

Emma

Wow.

Yeah, that is, I can only imagine how much confusion that causes.

And to your point, your CPA is there to help you and there to support you.

So get on the phone, give them that call.

And I know, you know, all of you guys at DHJJ welcome the phone calls, right?

So What happens if someone ignores one of these notices?

Angela

If you ignore a notice, I or maybe you received one and you lost it or something like that.

Don’t freak out.

Trust me, I swear the the IRS owns like half the paper.

Like they are ready to send you another notice.

Like, you know, I feel like if you missed one, you’re going to be getting another one in the mail soon.

The IRS and states are very, I feel like, paper heavy, they just keep sending them.

So if you missed one or you lost one, I’m sure there’s already one in the mail coming to you again.

But another way to kind of work around that is, again, having these online logins where you can go in and retrieve anything that you may have misplaced.

Emma

Yeah, that is a very, very good piece of advice and something that I definitely want to talk about.

you know, a little bit later on in this episode, because I think it’s definitely worth having that discussion as well.

You know, I think it’s also reassuring for people to hear that notices are actually pretty common.

You know, they’re not this big, scary thing.

So have you seen clients panic over notices that ended up being relatively minor?

Angela

Yes, definitely.

A lot of times, especially if it’s the second or third notice, they will seem like a little bit more of urgency.

They’ll say you have 30 days, you know, they might say we’re going to garnish wages

I’ve seen people receive letters like that for years and not, you know, where anything actually plays out.

Not that you should wait that long, but I would say if, if you know you have support for what they’re asking for, that you have more time than maybe it seems in the notice.

They might say you have 30 days to send the support, but there’s been many times where we call after that.

As long as you do have the support, they will likely forgive the balance due.

The only time it might be an issue timing-wise is if you actually do owe the money and you aren’t paying by the deadlines, then you could be increasing that interest and penalties amount.

But if you actually do not owe the money, I think timing wise, there’s a little bit more flexibility than what might seem on the notices.

Emma

I like that you’re talking about this flexibility and that there are deadlines because it’s something that you did touch on earlier of, you know, if you get something that is very urgent and, you know, time, super time sensitive, that could potentially be a scam.

You know, unfortunately, not every notice, text, e-mail, people receive it actually from the IRS.

And like you said, scammers have gotten much more sophisticated, especially around the tax related communications.

So what types of IRS scams are you seeing the most often right now?

Angela

One of the ones I think are becoming more common would be like texts or phone calls.

Something that you maybe receive a text that the IRS is trying to reach you, owe this balance, you need to clear it now.

You know, if you’re receiving a text or a phone call from the IRS, that should be an automatic red flag because they will typically not text or call you.

I don’t know if I’ve ever seen an actual legitimate IRS contact through texting or calling.

So you’ll receive, like I said, paper heavy, you’ll receive those letters over and over again in the mail if it’s an IRS notice.

So I think the first thing would be if it’s a text or a call, that should kind of already put up your caution sign a little bit.

Another thing would be if you get a letter in the mail, check and see what the sender address is.

There’s a lot of times where maybe it says the state of Illinois is requesting something or assessing some kind of payment due, but if you look in the top left corner of where it was sent from, it won’t say the Illinois Department of Revenue.

It might say a different kind of company, or it might have a misspelling on it.

That’s another one.

If it seems unofficial, things are off-center, there’s misspelling, it’s not cited directly from either a state jurisdiction department or the Internal Revenue Service, that should be cautious for you as well.

And if you’re ever not sure, like I said, any kind of feeling, I would run it by your CPA if it feels like something might be off or not right.

And another thing is, you know, sometimes they’re not always just trying to get you to make a payment to the IRS.

Sometimes they’re just trying to get some personal information from you to use and

People will file returns to try to claim fake credits or fake refunds under your social security number or other personal tax information.

They’ll try to file your return for you and receive a refund, put in fake credits.

So it’s not necessarily always something that is them trying to make a payment.

Sometimes it could be them trying to steal private information.

And one thing that the IRS has to kind of help alleviate those type of situations is that you can apply for a PIN through the IRS.

And this is a five-digit code that they give you.

It’s unique every year, so it doesn’t stay the same.

And they won’t accept anything from you unless it has that code on it.

So that’s something that’s really easy to do online.

You might as well because it protects you from people trying to fraudulently file things or claim credits underneath your information.

Emma

Oh, wow, that is incredibly helpful.

I will say of the several things that you mentioned there, one, thank you for highlighting some of those red flags because not everyone knows what to really keep an eye out for.

And, you know, the urgency, scare tactics, the inconsistencies on some of the communications, those are all big things to be looking out for.

And I also didn’t realize that they’re not just looking for money; they’re looking for personal information.

So that’s another very important thing to be looking out for.

And like you mentioned, the pin, everyone should be doing that, right?

It’s one more level of safety that you can put in so that your, you know, personal information isn’t stolen or, you know, money, this, that or the other, right?

Great way to combat some of these scams.

So you’ve mentioned it a couple of times here, but these online accounts, you know, I think this is where having direct access to your IRS information becomes really valuable.

Instead of guessing whether something is legitimate, business owners can actually verify the information directly with the IRS.

So for people who may not be familiar with them, what exactly is an IRS account?

Angela

So an IRS account is basically a portal or a login with a private password that you can use to access your tax account information.

It’s really helpful for a lot of reasons besides even just protecting from scams.

It has a lot of your tax information, your prior tax returns, and payments you’ve made.

A lot of times, clients need that information, whether they’re buying a house or applying for a loan.

And that’s just one last step where you don’t have to contact your CPA.

You can find all your stuff right there.

So yeah, that’s a login for you to be able to retrieve that information, and also any kind of notice or correspondence from the IRS should also be there.

And it also gives you a direct way to respond to notices.

You know, like I said, sending things through the mail a lot of times with processing and, you know, second notices or state notices, things getting mismatched for that reason, it helps you to directly be able to communicate securely with the IRS, which can also help, again,

And with CPA, you don’t necessarily need to go and work through them as a middleman all the time.

You can kind of take more action into your own hands by having this online account.

And a lot of the states follow suit, too.

So a lot of states have a similar type of login where you can be able to do that on the state level as well.

Emma

Got it. So is this something you think every business owner should have at this point?

Angela

Yes, definitely.

I think every business owner and just individual in general should have them because like you said, it’s just another layer of protection.

It’s easier to retrieve information.

You could directly communicate with the IRS.

It really just makes things a lot more efficient and safer.

So absolutely, I would recommend everybody to do that as well as get the PIN.

And a lot of people say like, you know, make things like they’re too small or not big enough that anyone’s going to come after them, but sometimes those are the most vulnerable people because it’s to apply for a refund or for a credit for maybe someone who just has a small tax situation.

So I’d say at any level that you are, get the PIN and get your login for the IRS.

Emma

Awesome. You know, it really seems like the IRS is moving towards a more digital, you know, digital access, self-service tools.

Are IRS accounts becoming something business owners should expect to rely on more going forward?

Angela

I think we’re still in an era of the in-between.

You know, I don’t think it’s where you, if you don’t have it, you won’t be able to receive notices.

People still use a lot of paper and will try any way to contact you, but it’s definitely the way of the future and something that you should get ahead on.

Emma

Got it. Well, This whole conversation has been incredibly helpful.

And I’ve said it a couple of times here, but it really is just so true.

You’ve given a lot of very practical tips that any business owner can be utilizing.

So, you know, between the proactive planning, understanding IRS notices, staying alert for scams, and setting up that IRS account, there are a lot of ways that business owners can reduce stress later on in the year by taking action now.

So I like to ask all of my guests, you know, if there is one thing that a business owner should do after listening to this episode, one thing that they should really take away from the conversation we had today, what would that be?

Angela

I would say if you could print a financial report with a comparison to last year and schedule just a mid-year meeting to talk through your business plans for the remainder of the year.

So you have your financial statement to say, here’s where we’ve been, and then your conversation to say, here’s where we’re going.

and just have a brief conversation with your CPA.

It could be 30 minutes, it could be something quick, but you end up finding something that you had no idea, you might be surprised.

So that is definitely what I would recommend business owners to do.

Absolutely.

This time of year.

Emma

Yeah, definitely.

Angela, thank you so much for joining me today.

I think this was such a helpful conversation because it’s a good reminder that tax planning really shouldn’t start in November.

Businesses that tend to feel the most prepared at year end are usually the ones having these conversations now, reviewing cash flyear-endows, checking estimated taxes, understanding profitability, and staying ahead of potential issues before they become bigger problems.

You know, and if you receive an IRS notice, don’t panic.

Most notices are manageable, but ignoring them can make things worse.

So, thanks again for listening to Ask a DHJJ CPA, the podcast where real CPAs answer real questions from business owners.

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