Year End Tax Tips

As we come to the end of the calendar year many  people ask myself and fellow New York City Certified Public Accountants whether year end planning is warranted to reduce NYC taxes and other tax obligations.

Here are some suggestions as to what should be done but we recommend you consult with us, NYC CPAs for NYC tax guidance:

1. Make sure estimated taxes have been paid.  If you haven’t catch up before year end. If not, the IRS and state tax authorities may assess penalties for not paying sufficient NYC estimated taxes and estimated taxes to other authorities.  For state and local taxes we recommend the payment be made before December 31, 2009 to insure these payments can be itemized on your 2009 taxes.
2. For sole-proprietorships, freelancers, general partnerships, single member LLC and multi-member LLC make sure your NYC Unincorporated Business estimated taxes have been paid.
3. For sole-proprietorships, freelancers, general partnerships, single member LLC and multi-member LLC make sure you pay the new Metropolitan Commuter Transportation Mobility tax before February 1, 2010.
4. For individuals who employed freelancers, make sure 1009-Misc forms are filed before January 30.
5. For single member LLC, multi member LLC, LP make sure your NYS LLC/LLP Filing Fee is paid and filed before February 1, 2010.
6. For individuals with employees, make sure the forth quarter payroll returns, annual FUTA and W-2s are completed before February 1, 2010.
7. Have a high profit? Prepay some of your 2010 bills prior to year end.
8. Consider selling securities by year end to lock in losses.
9. Consider a 2009 contribution to an IRA or an SEP IRA.  However, this can be done prior to April 15, 2010 and we recommend holding off until you prepare your 2009 taxes as their contribution limits based on income.

Some planning prior to year end can really save you aggravation come tax filing time. Of course, please feel free to reach out to us if you need assistance.