From Books to Bank – March 2025 Edition

📢 From Books to Bank – March 2025 Edition

🚨 March Tax Deadlines Are Here – Maximize Deductions & Avoid IRS Penalties! 🚨

🗓️ March 2025 Business Tax Deadlines – Don’t Leave Money on the Table! Tax season is upon us, and strategic preparation can save business owners thousands in deductions while avoiding costly IRS penalties. Are you confident you’re filing correctly? In this edition, we cover:

📌 Essential tax deductions every business owner should claim

📌 Key IRS deadlines & penalties to avoid

📌 How to prepare your books for tax season

📌 Beneficial Ownership Information (BOI) Reporting – New March 21, 2025 Deadline

📌 The importance of collaborating with a Certified Public Accountant (CPA) Let’s dive in to help you save more and stay compliant.

Section 1: Maximize Your Tax Deductions – Don’t Overpay!

Every dollar you deduct is money back in your pocket. Yet, many business owners overlook valuable deductions.

Commonly Overlooked Deductions:

🏠 Home Office Deduction: If you use a part of your home exclusively and regularly for business, you can deduct a portion of rent, mortgage, utilities, and internet. Use either the simplified method ($5 per sq. ft., up to 300 sq. ft.) or actual expenses.

🚗 Vehicle Expenses: Business mileage is deductible at $0.67 per mile for 2024 OR you can claim actual costs (fuel, maintenance, insurance).

🚀 Startup Costs: Recently started your business? You can: Deduct up to $5,000 in the first year if total startup costs are $50,000 or less. If startup costs exceed $50,000, the immediate deduction phases out, and remaining costs must be amortized over 15 years.

📢 Marketing & Advertising: Expenses for promotions, including digital ads and website hosting, are fully deductible.

🏥 Health Insurance Premiums: Self-employed individuals may fully deduct their health insurance premiums.

💼 Retirement Contributions: Contributions to retirement plans like SEP-IRAs or Solo 401(k)s can significantly reduce taxable income up to $73,000!

💻 Software & Subscriptions: Business-related software and online tools are deductible.

📑 Professional Services: Fees for services such as bookkeeping, tax preparation, consulting, and legal advice are tax-deductible. Action Tip: Review your expenses for the year to ensure you’re claiming all eligible deductions.

Section 2: March 2025 Tax Deadlines & Penalties

Key Deadlines for March 2025:

📅 March 17: S-Corporation Tax Returns Due (Form 1120-S): For calendar year S-Corporations, file by this date. Source: IRS Publication 509 Partnership Tax Returns Due (Form 1065): For calendar year partnerships, file by this date. Source: IRS Publication 509

📅 March 31: Electronic Filing of 1099 Forms: Deadline to submit electronic 1099 forms to the IRS. Source: IRS Publication 509

📅 March 21: Beneficial Ownership Information (BOI) Reporting Deadline: Most companies must file their BOI reports by this date. Source: FinCEN BOI Reporting

Penalties to Avoid:

❌ Late Filing of Business Tax Returns: The penalty is 5% of the unpaid tax per month, up to a maximum of 25%. If your return is over 60 days late, the minimum penalty is the lesser of $510 or 100% of the unpaid tax. Source: IRS Failure to File Penalty

❌ Late Filing of 1099 Forms: Penalties range from $60 to $330 per form, depending on how late the forms are filed. Intentional disregard can result in penalties up to $660 per form. Source: IRS Information Return Penalties

❌ Failure to File BOI Reports: Non-compliance can result in civil penalties of $591 per day and criminal penalties of up to $10,000 and/or two years in prison. Source: FinCEN BOI FAQs Avoid IRS headaches – ensure compliance now!

Section 3: Tax Season Readiness Checklist – Get Your Books in Order

📂 Organize Your Income & Expenses: Ensure your financial records are accurate and up-to-date using accounting software.

🧾 Review Bank & Credit Card Statements: Verify all transactions are correctly categorized.

📄 Collect All Necessary Tax Documents: Ensure you have all required forms, such as 1099s and K-1s.

✅ Double-Check Your Deductions: Refer to the list above to confirm all eligible deductions are accounted for.

🕒 Consider Filing an Extension if Needed (Form 7004): Remember, an extension to file is not an extension to pay taxes owed.

Feeling overwhelmed? Let us handle your bookkeeping so you can focus on growing your business. Book a Complimentary Consultation Today!

Section 4: Beneficial Ownership Information (BOI) Reporting – New Deadline

Important Update: The Beneficial Ownership Information (BOI) Reporting requirements are back in effect.

📄 What is BOI Reporting?: Under the Corporate Transparency Act, many companies are required to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).

🏢 Who Must File?: Most corporations, limited liability companies, and other similar entities formed or registered to do business in the U.S., unless exempt.

📅 New Deadline: March 21, 2025. Source: FinCEN BOI Reporting

⚠️ Penalties for Non-Compliance: Failure to file can result in civil penalties of $591 per day and criminal penalties of up to $10,000 and/or two years in prison. Source: FinCEN BOI FAQs

Need assistance? Talk to us today!

Section 5: Collaborate with a CPA for Optimal Financial Health

We Recommend Every Business Owner Partner with a Licensed CPA

👨⚖️ Expert Representation: CPAs and Enrolled Agents (EAs) can represent you before the IRS in case of an audit or legal issue.

🤝 Seamless Financial Management: We collaborate closely with your CPA to ensure accurate financial records, smooth tax filing, and clear adjusting entries throughout the year.

📈 Proactive Tax Planning: By working together, we help you and your CPA identify tax-saving opportunities and implement strategies to minimize your tax burden legally.

💡 Need a trusted CPA or EA? We partner with some of the best tax professionals and can connect you with one that fits your business needs. Reach out today!

🚀 Free Resources to Help You Save Money & Stay Compliant! FREE eBook: Download The 2025 Real Estate Tax Strategy & Bookkeeping Guide Here

💡 Have tax or compliance questions? Drop them in the comments, and we’ll answer them in the next edition!

🔗 Subscribe now to never miss an update and protect your business from costly mistakes!