If you are listening to this episode in April, you may have taxes on your mind. There is a lot that goes into tax preparation, but if you have been prepping throughout the year you’ll have no reason to fret.
Today my good friend and CPA James Buss joins me to discuss tax tips, tax planning, and share his insider’s insight on how to get better service at tax time. Learn what you should be thinking about as you get ready to file your taxes.
You will want to hear this episode if you are interested in…
- James’ story [1:22]
- Why the IRS shredded 30 million paper-filed tax returns [5:40]
- Whether it is smarter to e-file [8:54]
- The best time to do tax planning [13:22]
- 2021 tax letters [16:20]
- How to get tax papers to your tax preparers [21:50]
- The speed of 2021 refunds [27:08]
- What can you can do to get a better tax experience [29:44]
- The difference between an EA and a CPA [35:26]
- The money questions [41:22]
How James struck out on his own
James Buss started thinking about striking out on his own back in 2003 when he began receiving calls from my clients. After careful consideration and creating a business plan, James opened for business in April of 2005. Reflecting back he realizes now that it wasn’t the best time to go solo. Even though he had to hit the streets to find business at first, James’ company has been growing ever since and he now has clients all over the country and a staff of 6 employees. Although he is no longer a solopreneur, he still remembers what it is like and his small business still has that solopreneur feel.
When is the best time to do tax planning?
Once you sign your tax return for the prior year it is time to start thinking about the coming year’s tax planning. Today’s tax software has the ability to do projections which allows you to think about what is coming in the next year.
After these initial projections, it’s good to plan to meet with your tax planner in May or June to discuss where you are in your business and where you are going. Your planner can help you think through questions like when would be the best time to buy equipment or hire employees during the year. You can also discuss whether you are hitting your targets.
Get your poop in a group
It is important to make sure that your tax preparer has everything they need to get your taxes filed correctly. Nowadays your tax preparer most likely uses a secure online portal to communicate and collect documents. Never use email to send sensitive documents since this is not a secure way to send personal tax information. James remarks that the most frequent missing documents in his office are 1099 interest forms, brokerage forms, and HSA documents. So once you have everything you need together you should upload everything at once to lessen the confusion.
A CPA provides value in many ways
James mentions that the last thing you want to do is use Google to guide your tax decisions now that the old ways of using a CPA service are over. Gone are the days of only talking to the CPA at tax time. It is important to talk to your CPA throughout the year so that you can make sure that you are on the right track and to ensure that there are no surprises come tax time. Listen in to learn why Google is not your friend when it comes to tax advice.
Resources & People Mentioned
Connect with James Buss
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