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Tax savings, mid-year, tax

It’s already June, and tax time seems like just yesterday. Just as the last few months have flown by, tax time will again be here before we know it.

Though it’s the middle of the year, here are three things you can do now to potentially save a significant amount on your taxes at the end of the year.

IRS, Refund, Letter 5071C, Letter 4833C

In my last blog, we discussed what to do if you receive a Form 4737D from the California Franchise Tax Board (FTB) instead of an expected state tax refund. As far as your federal refund goes, you may receive a similar form in lieu of refund, called the letter 5071C or 4883C from the IRS.

If you have received either of those forms from the IRS, here are a few things you need to know, and how your tax professional can help.

4734D, Tax Refund, FTB, Franchise Tax Board,

If you’re expecting a refund from the California Franchise Tax Board (FTB), this can be a lovely time of year. If your accountant has calculated a refund, there is a fair amount of certainty you will receive one. However, occasionally this doesn’t go as planned.

If, instead of a refund, you received Form 4734D – here’s what that means.

C Corp, Corporate Entity, Tax Liability

Are you planning on forming a new business entity? If so, will you be getting the best tax deal? With possible, yet uncertain tax reform on the horizon, the C-corporation could be a better choice.

It’s good to know exactly how you might benefit with your entity choice, particularly should the tax laws or economic conditions of your business shift. As it stands, several factors are making the C-corporation a more attractive option.

Here’s how it breaks down.

Partnership Audit

Due to recent changes to the Tax Equity and Fiscal Responsibility Act of 1982, federal audits of business partnerships are expected to rise significantly. Because of sophisticated tiered structures of many partnerships, it had become difficult if not impossible for the IRS to conduct an effective audit. The new rules are expected to change all of that, but with the new audits, you do have options. Here’s what you need to know.

Early filing, taxes

It’s still early in the tax season, and you may have some questions about refunds, filing, or things you may have heard in social media about taxes. The IRS has recently published a release addressing common myths about filing your taxes early, and we here at PDM wanted to share with you what the IRS has to say.