Dallas-based CPA firm Badu Tax Services, LLC released a five-point mid-year tax checklist today, aimed at helping business owners identify potential tax-saving opportunities before the fourth quarter begins. The checklist was compiled by founder and CEO Jeff Badu, CPA, based on patterns observed among business clients who postpone tax reviews until the end of the calendar year.
According to the firm, business owners who wait until December to assess their tax position often find that several planning options are no longer available by that point in the year. A mid-year review is intended to identify issues while there is still time to make adjustments before year-end filing deadlines.
The five-point checklist outlined by the firm includes the following steps for business owners to complete before the end of summer:
1. Review year-to-date profit and loss statements to compare actual performance against earlier projections and estimate tax liability.
2. Reassess quarterly estimated tax payments if income has changed significantly from initial projections, in order to avoid underpayment penalties.
3. Evaluate the business entity structure, including whether an S-corporation election may reduce self-employment tax exposure as revenue increases.
4. Review retirement plan contributions, including SEP IRAs and Solo 401(k)s, to confirm they remain on track to meet annual contribution limits.
5. Plan major purchases and capital expenses with tax timing in mind, rather than making end-of-year decisions without prior planning.
The firm stated that each step involves reviewing existing financial data rather than making financial predictions. Badu Tax Services provides tax preparation, tax planning, and tax representation services to individual and business clients in all 50 states.
Founded by Jeff Badu, CPA, Badu Tax Services, LLC is based in Dallas, Texas, and works with clients across the United States on tax preparation, planning, and representation matters.
