2025 has been a volatile year for the American economy, and businesses from the smallest mom-and-pop shop to the biggest corporations have felt impacts. One major development was the passage of the One Big Beautiful Bill Act (OBBA), which will likely have significant impacts, particularly on businesses operating in more than one state.
As a business owner, now is the time to take steps to improve your tax footing before the year ends. Focusing on tax planning can save your business money and help you reduce your tax burden.
Keep reading to learn about some useful end-of-year tax tips you can implement in your business to help you prepare for the tax season ahead.
1. Adopt a Multi-State Mindset
The OBBA is expected to have significant effects for businesses with operations in more than one state, as state and local tax rules become more unpredictable. If your business has locations in more than one state, it’s essential that your tax planning and strategies are specialized for each location, with a particular focus on all states in which the business produces revenue. Now might even be the time to start seriously considering a change in location. To get more information on how your business should adapt in response to the OBBA, you should reach out to a Weslaco tax accountant for personalized insights.
2. Manage Your Bookkeeping
Accurate bookkeeping is one of the most important tax activities you can do before the year ends. This record-keeping process allows you to organize invoices, financial statements, and expenses in time so that your tax filing season runs smoothly. Armed with this information, you can reduce your taxable income and also meet tax deadlines.
To make your bookkeeping process even more efficient, you can use bookkeeping software to keep track of income and expenses in real time. It also helps to reduce manual errors and save time.
If you need assistance with your bookkeeping, don’t hesitate to turn to a capable Weslaco CPA.
3. Conduct a Reverse Audit
Another important end-of-year tax tip for businesses is conducting a reverse audit. With this method, you proactively examine your financial records, including franchise and overpaid taxes, and taxes paid on utilities. This audit helps you ensure that all your income, expenses, and deductions have been properly documented.
By conducting a reverse audit, your business can also spot errors or missing entries that can affect your tax liability. Catching these issues early makes it easier for you to make corrections and potentially reduce your tax burden.
The team here at Gonzalez & Arrambide, Inc., would be proud to help you conduct a reverse audit to protect your affairs.
4. Check Your Property Taxes
Sometimes, property taxes can be higher than we expected. Overlooking your property tax burden can lead to penalties or fines. As your business prepares for the end of the year, you can review your records to be sure there are no outstanding property taxes.
If your business has acquired a new property or equipment during the year, you will need to verify the implications such purchases have on your taxes. This can help ensure your purchases are accurately accounted for in your financial records.
5. Plan Your Finances for End-of-Year
Strategic financial planning is one of the most effective end-of-year tax tips you can practice. Consider adjusting your income or expenses to manage your overall tax liability. For example, you can consider deferring some income or purchases to the next year. Or you can make early payments to reduce this year’s taxable income. You can also take advantage of retirement contributions to lower your tax bill.
To learn more about tactics you can use to minimize your tax burden and maximize your return, you should consider turning to a capable Weslaco accountant.
6. Start Early on Tax Preparation
Starting your tax preparation at the last minute increases your chances of making mistakes and missing important documents. It also increases the chances of overlooking deductions or making errors that can lead to penalties.
To avoid these issues, you have to start early. Doing this can give you time to gather all the necessary records and receipts you need. You’ll also have the time to review your financial statements for accuracy. You can consult with a CPA to identify any last-minute opportunities for deductions.
7. Work with a Weslaco CPA
One of the smartest tax tips for the end of the year is to work with a Weslaco CPA. A CPA can help you understand tax laws and stay compliant with all regulations that apply to your business. They can also help you maximize deductions and credits and provide strategies you can use to lower your tax liability. Without a tax advisor by your side, you’re leaving yourself vulnerable to fines, penalties, and difficult audits.
Get Your Business Ready for Tax Season with Help from Gonzalez & Arrambide
To get your business ready for the upcoming tax season, it’s important to take steps to respond to tax law changes and prepare for your upcoming tax burden. At Gonzalez & Arrambide, Inc., we specialize in offering customized tax preparation services to help you maximize your returns. We can help you determine the right steps to take to best adapt to the OBBA.
Our team can help streamline your bookkeeping, carry out tax planning, conduct a reverse audit, and guide you through your property tax filing processes. If you want to make sure your business is ready for the upcoming tax season, consult a Weslaco CPA at Gonzalez & Arrambide.
Keep your business ready for tax season with help from an experienced Weslaco CPA.
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As a Weslaco resident or business owner, dealing with the Internal Revenue Service (IRS) can be overwhelming. The complex tax laws, strict regulations, and penalties can leave you feeling stressed and confused about the tax filing process.
But what if you could confidently manage your taxes and ensure compliance without worrying about fines? Here are some valuable tips from experienced CPAs to help you successfully deal with the Weslaco IRS.
1. Stay Informed
When dealing with the IRS in Weslaco, you need some background knowledge of the rules and guidelines that apply to you. This knowledge will help you navigate any tax issues you encounter. The IRS guidelines contain everything— from the collection and appeals process to organization and other parts of the taxation process.
These guidelines outline the documents you need to file your taxes and they also discuss your rights as a taxpayer. Unfortunately, the IRS guidelines are complex and constantly changing, which makes them hard to remember. To stay updated, you can check out the Internal Revenue Manual (IRM). Or save yourself the headache by working with an experienced Weslaco accountant.
2. Meet All Required Deadlines
To stay in good standing with the IRS, make sure you adhere to all deadlines. By doing so, you’ll save yourself from costly fines while also showing that you respect the tax filing process. Some deadlines you must meet to avoid penalties include:
- Filing your tax returns on time
- Paying taxes and penalties promptly
- Providing all requested documentation
- Responding to the IRS notices within deadlines
You can find some more important tax dates and information in our Tax Center.
3. Clearly Communicate Compliance Challenges
If you’re struggling with compliance issues, it’s important you communicate with the appropriate authority as soon as possible. Whether you’re failing to meet a deadline, facing challenges with incomplete sales tax filings, or dealing with incorrectly estimated tax payments, you should consult with a Certified Public Accountant (CPA) to learn how to go about informing the government about your lapse. Communicating can help you avoid costly penalties and reduce anxiety.
4. Document Every Transaction and Interaction
Always make sure to record all transactions and interactions you have with the IRS. The IRS is a massive agency, and sometimes, documents get lost, payment errors happen, and expectations aren’t met. So, whenever you speak with an IRS representative, write down their name and badge number, and take notes of the conversation. Even if an agreement was reached over a phone call, you should write it down.
5. Don’t Take No for an Answer
If you receive a report from the IRS saying that some adjustments have been made to your account, you can ask for an explanation. Don’t be afraid to ask questions, especially if you’re unsure about legal terms. You have the right to ask questions and understand the payment plans, audit results, and penalties. Also, if you disagree with the IRS’s decision, you can appeal or request a reconsideration. If you’re unsure about how the IRS is treating you, or you plan on appealing an IRS decision, be sure to seek professional help.
6. Don’t Deal with Weslaco IRS Alone: Seek Professional Assistance
Dealing with the IRS can be intimidating, especially if you’re facing an audit or owe back taxes. The IRS has strict rules and regulations, and any misstep can result in costly fines or legal issues. That’s why seeking professional assistance from a reputable tax expert or CPA is important. A CPA can offer professional advice, help you navigate complex tax laws, offer financial planning services, and even represent you when dealing with the IRS.
If you’re looking for an exceptional Weslaco IRS accounting service to work with, you can reach out to Gonzalez & Arrambide, Inc. With the help of our experienced team of capable Weslaco CPAs, you can be sure your financial records are accurate and your tax preparation is easy.
If you’re about to deal with the IRS in Weslaco, reach out to the team at Gonzalez & Arrambide, Inc.
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Tax day might only come once per year, but the financial decisions you make all year round can have significant impacts on your tax burden or tax return. At the end of the year in particular, there are steps that you can take to reduce what you owe.
Keep reading to learn about end-of-year tax tips for businesses and individuals from a Weslaco certified public accountant.
End-of-Year Tax Tips for Businesses
As a business owner, the fact that your tax burden can have a huge effect on your overall business success shouldn’t be news to you. Managing your taxes is a crucial part of running a successful business, and that’s especially true for end-of-year tax preparations. At the end of the year, consider following the tips below to minimize what you owe:
- Complete large end-of-year investments.
- File year-end tax forms.
- Check that your last-quarter financials are caught up.
- Defer income to save on taxes for this year.
- Give to charity to bring down your tax burden.
- Identify unusable inventory for deductions.
- Check on retirement plans.
- Complete any needed office repairs or updates to be deducted.
- Identify uncollectible debts for deductions.
Keep in mind that not every tip will apply or be the best choice for every business. To learn more about the steps you should be taking to prepare for the year ahead, reach out to a qualified Weslaco CPA.
End-of-Year Tax Tips for Individual Filers
As an employed individual filer, you might think that there’s nothing you can do to increase your tax return when tax day comes. Self-employed filers, on the other hand, know that there are plenty of steps they can take to minimize their burden. Whether you’re employed by someone else or work for yourself, you can follow the tips below to maximize what you’re owed.
- Use up your flexible spending account funds.
- Verify that the correct amount has been withheld from your paychecks.
- Max out your contributions to health savings and retirement accounts for deduction.
- Tax-loss harvest by selling investments at a loss to reduce capital gains tax.
- Group your deductible expenses so you can reach the minimum threshold.
- For those 73 and older, collect your minimum distributions from your retirement plan.
For some self-employed filers, it may make sense to also follow some of the tax tips from the section for businesses, but this will vary from person to person. To learn what steps you can take as an individual filer to maximize your return, get in touch with a Weslaco CPA.
Maximize Your Return and Minimize Tax Burdens With Gonzalez & Arrambide
For most of us, tax day is a stressful time full of uncertainty. However, it doesn’t have to be. With help from a Weslaco CPA, you can ensure that your finances are in great shape before the year ends.
If you want to make sure that your tax day 2024 is as painless as possible, reach out to the experienced Weslaco CPAs at Gonzalez & Arrambide, Inc. We can help you get your finances in order and prepare for the year ahead.
Make sure your finances are in line before the end of the year with help from a Weslaco certified public accountant from Gonzalez and Arrambide, Inc.
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Individuals working traditional jobs will generally have their taxes withheld automatically by their employers. You should be able to easily find the amount of income tax withheld by inspecting your tax documents.
However, what happens if you do not have an employer? How do you go about paying taxes if you are self-employed?
Just like those traditionally employed, those self-employed do indeed need to pay their taxes. Generally, the individual will be responsible for tracking how much they owe. Because of the challenges this can bring, many choose to work with a personal accountant to help pay their self-employment taxes.
If you are self-employed, here’s what you need to know about paying your taxes in Texas.
Who Has To Pay Self-Employment Taxes?
If you make your income without an employer, you’re probably going to have to pay self-employment tax. Here’s a short list of types of workers where self-employment taxes may apply:
- Independent contractors
- Sole proprietors of a business or trade
- Members of a partnership that carries on a trade or business
- Gig workers
- Part-time business owners
While most employees receive a W-2, contractors and business owners will have a few different forms they will need to properly file their taxes. These can include a 1099-NEC, Form 1040, or 1040-SR.
A tax accountant can help you if you’re unsure where to start.
How Much Is the Self-Employment Tax Rate?
The self-employment tax rate is typically around 15.3%, which is paid into Social Security and Medicare. However, this is higher than what traditional employees pay. That’s because employees pay half of this tax while the employer pays the other half.
To counter this issue, you can deduct 7.65% of your income to pay the employer’s half. This reduces your taxable income, so you pay a bit less in taxes.
What Taxes Do Self-Employed People Pay?
Those who are self-employed pay similar taxes to other traditional employees. Here are the various types you can expect to pay while self-employed:
- Self-employment tax
- Income tax
- Sales tax
- State tax (where applicable)
Income and sales taxes are paid by every working American, while self-employment tax only by those who fall under the category. Most states have a sales tax, but some counties and cities will have their own sales tax on top of that.
How To Calculate Self-Employment Taxes
This can be a bit tricky, so don’t be afraid to contact a personal accountant if you’re overwhelmed or afraid of making a mistake:
- Calculate your net self-employment income by subtracting your expenses from your gross income.
- Find your tax bracket by determining how you will be filing and your income. The rates are different depending on your situation (ex. single filer versus filing jointly)
- Figure out if your net earnings are over $147,000 since you will need to calculate anything above that at a different rate.
- The self-employment tax rate is 15.3% for net income under $142,800. If you make over that, any additional income is taxed at 2.9%.
Trust Gonzalez & Arrambide With Your Self-Employed Taxes
If you’re worried about the IRS coming after you, there’s a simple solution. Trust the professional tax accountants at Gonzalez & Arrambide. We can help you file your self-employment taxes with confidence. Don’t delay, contact us today for your free consultation!
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It’s that time of year again! Tax Day is approaching on April 18th and you need to file your taxes before time runs out. Now is the time to get all your ducks in a row to complete your tax preparation or opt for professional help with filing.
The very first thing you need to gather is all your tax-related documents. Which ones you need will depend on your financial situation and employment. For instance, business owners and those who are self-employed will need to gather additional information.
The team at Gonzalez and Arrambide, Inc., wants you to know which documents are necessary for tax preparation.
Proof of Income (W-2, 1099-NEC, etc.)
Most people who are traditionally employed will receive a W-2 form from each job they have. However, self-employed people and business proprietors will need to have their 1040 on hand. If you’re an independent contractor, you should have a 1099-NEC form available.
It’s important to note that there are a variety of 1099 forms that cover the various ways you are obtaining income; from rental income to payouts from a retirement fund, there is likely a 1099 form for that.
If you’re getting your tax preparation done by a Weslaco accountant, bring every form you’ve received. You can also bring any receipts or other records if you’re unsure whether it needs to be reported.
Deductions
Do you have kids or other dependents? You’ll need to claim them on your taxes, just be sure you have all their information available to you, including: full legal names, dates of birth, and social security numbers. If you share custody of your children, you’ll need to discuss which parent will claim them.
If you own a business or spend a lot on expenses for your job, you’ll be able to claim a number of deductions on your taxes.
Charitable donations, major purchases, and some life events — like paying for college — can also be deducted.
Our experienced tax accountant can help you find additional deductions you may not have even thought of!
Other Tax Documents You May Need
Every individual’s situation is unique, so you may need additional documents to properly complete your taxes.
Businesses can see their taxes change depending on how their year went. If you expanded, the IRS wants to know. Even gambling wins need to be reported! There’s nothing wrong with gathering more documents than you think you need. Critical financial information can come from a variety of sources.
If you want to make sure you remember everything you need, hire a Weslaco accountant to keep your finances on track. As a bonus, it makes Tax Day way easier!
Identification
If you’re doing your tax preparation, all you need is your full name and social security number. If you’re getting help with filing taxes, then you will need to provide some information to the preparer.
Your Weslaco accountant at Gonzalez and Arrambide, Inc., may have more requirements, but these are the basics:
- your social security number or Taxpayer Identification Number
- a government-issued photo ID; a passport, state ID, or driver’s license will work
- 2020 and 2021 tax returns if you have them
- your Identity Protection PIN if you were issued one
- ID, social security number, and birth date for your spouse if you are filing jointly
- social security numbers and birth dates for your dependents (children)
Dread Doing Taxes? Let Gonzalez & Arrambide Help!
If you don’t want to deal with the headache of Tax Day, let Gonzalez & Arrambide, Inc., take care of filing your taxes. Our CPAs can help you prepare, file your taxes, and make sure you succeed this tax season.
As a bonus? We can help you year-round with our bookkeeping services! Our CPAs work with individuals and businesses to get ahead of their finances. We help with everything from investments to audits and everything in between. Taking advantage of our bookkeeping services also means you’ll have a leg up next tax season.
Don’t wait, see what we can do for you!
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