When to Correct Tax Mistakes on the Smooth Business Growth Podcast

 

So I have a question for you. Let’s say you feel like you haven’t done it right in the past few years. Can you go back to the past years and right your wrongs so to speak? Can you correct tax mistakes if you have that documentation?

If you’ve made mistakes, you can go back basically three years from the date of filing and correct tax mistakes. We’ve had that situation before. We had one client. We saved him about $87,000.

Sweet.

Yes. He was happy.

I bet. Oh my god. So yeah, even knowing that you can go back and you get a mulligan.

You can’t rewrite history, but you can correct tax mistakes that were incorrectly reported.

So if you didn’t do it, you can’t fix it. But if you reported it incorrectly you can correct tax mistakes.

So if there were a handful of things that you didn’t write off, you can go back and reassess so to speak?

Correct.

That’s good to know.

Or the accountant didn’t get to put them down because you just went to see him on March 14 and returns were due March 15.

I’m sure that happens. And just to remind everyone here, don’t wait until the deadline.

Get in touch with your professional. Start communicating because most firms are really, really busy February, March, and first two weeks of April, so it’s very hard for them to really do a lot for you because they’re overwhelmed. And that’s the importance of planning, we work with our clients all year round.

What is a Tax Coach

And what is the difference between a CPA and what is this term “tax coach” and what does that mean?

A tax coach does not have to be a CPA.

Oh, okay.

But it’s somebody that goes for additional training. We usually do  at least 40 hours a year in training. And it’s just the people that are really looking for planning. Ways to plan and ways to help their clients versus the typical accountant that is simply putting the numbers in the right box. You want somebody that is continuously learning.

SHOULD REVIEW THE THE NEW TAX LAW CHANGES WITH YOUR CPA BEFORE IMPLEMENTING ANY TAX PLANNING STRATEGIES.

Get your copy of my book the 10 Biggest Tax Mistakes That Cost Business Owners Thousands HERE!

Listen to the full podcast here.