Recommendations

A) Do Not Mail Checks to the IRS
All payments to the IRS, other than through an approved Tax Software Program, need to be paid via IRS.GOV. Why? Because we are starting to see issues when folks mail checks to the IRS with too many hands touching the check payments. IRS is blaming the USPS and the Banks. USPS is blaming the IRS and the Banks. Banks are blaming the IRS and USPS. Plus thieves are sometimes stealing the checks and using the check info to get into folks bank accounts. For a couple of our clients, it has become a big mess.

Bottom line, going forward it is never ever a good idea to mail checks to the IRS or really anyone these days. Paying via IRS.GOV is VERY easy, just like paying Utilities, Credit Card Payments, and others online.

Effective September 30, 2025, the IRS is phasing out paper checks and shifting to electronic payments for both tax refunds and payments.
Changes for payments made after September 30, 2025

• The phase-out of paper checks is required by Executive Order 14247, which aims to improve efficiency, security, and reduce costs for federal financial transactions.
• For tax returns filed in 2026 for the 2025 tax year, taxpayers will need to provide direct deposit information for refunds and use electronic methods to submit tax payments.
• Limited exceptions may be granted by the Treasury Department for individuals without access to banking services, but the process and exact criteria are still being developed.

B) All major Income Sources should have Federal Income Tax Withheld.
I am a firm believer that all major income sources, like your W-2 Income, 1099-R Retirement Income, SSA Retirement Income, Investment Income if substantial, etc. should have Federal Income Tax Withheld.

Too many folks owe the IRS at Tax Time because one or more of their major income sources does not have Federal Income Tax Withheld and/or enough withheld.

Also, if you live and/or work in a State, you should also have State Income Tax Withheld.

C) Set up a separate “Tax Money” Savings Bank Account 
I have seen too many times at tax time that self-employed folks that make and/or are supposed to make IRS estimated tax payments are not prepared to pay taxes at tax time and wind up getting behind with the IRS.

I have also seen too many businesses that collect taxes on behalf of the government are not prepared to pay taxes by the due date and wind up getting behind with the government.

For example, when it is time to pay the sales taxes, they would use sales tax money that does not belong to them for their business operations and are not prepared to pay sales taxes when due and ends up getting behind with the government.

D) Manage your Business Finances and Personal Finances in “Separate” Bank Accounts 
I have seen too many times where self-employed folks that own a small businesses do not keep their business money and their personal money separate by having separate business and personal bank accounts and separate credit card accounts. 

E) Set up a separate “Emergency” Savings Bank Account 
Everyone needs to save for an emergency, some folks refer to it as a rainy day, like with what happened during COVID, individuals in case of unexpected job loss, and possible large expenses like medical, home, vehicles, etc. and businesses in case of unexpected loss of key employee(s), customer(s), vendor(s), etc.

F) Have a Qualified and Trained Person Manage and take care of your Accounting and Bookkeeping Records, sometimes referred to  “Company’s Books”
Way too many times I have seen where Business Owners without any qualifications, supervision, and/or  training, either do their own Company’s Books and/or they have a nonqualified person (spouse, girlfriend, neighbor, buddy, etc.) do their Company’s Books for them.  Their theory is that is saves them a few dollars in accounting and bookkeeping costs.  From what I sometimes see is that all it does it costs them more in taxes to the IRS and States because of inaccurate Company’s Books.  Sometimes thousand of dollars more in taxes.  I always want to ask, how does that few hundred dollars savings in accounting and bookkeeping costs look now in compared to the thousands of extra taxes having to be paid?   Plus I have seen a two day scheduled IRS Audit get pushed into two or more weeks because of how horrible a Company’s Books were.  

G) Business Owners often ask us about Business Vehicle Expenses (BVE).

The following information applies to all vehicles used for business purposes.  
However, it is primarily written for the business owner who only has one vehicle that is used for everything (their business, all of their business and personal errands, their family, personal uses, personal vacations, etc.)

Business owners have two ways to deduct their business vehicle expenses (BVE) and once you pick a method for the vehicle, you must stay with the same exact method until you dispose of the vehicle.

1)“Standard Mileage Rate” Business Vehicle Expense (BVE) Method

• Simplest method to calculate and is used by about 99% or so of our business owner clients, including our CPA Firm, because it is  generally the better method for tax purposes for the entire ownership of the vehicle.
• “Standard Mileage Rate” method covers all of the vehicle expenses (examples, purchase costs, registration and tags, depreciation, fuel, insurance, lease payments, maintenance, repairs, etc.).
• To calculate the Business Vehicle Expense (BVE) Deduction, you take:
  “Standard Mileage Rate” for the year as published by the IRS
  times your business vehicles miles driven for the year
  and this amount equals your Business Vehicle Expense (BVE) deduction for the year.

2) “Actual” Business Vehicle Expense (BVE) Method.

• More complicated method to calculate and is used by only about one percent or so of our business owner clients because it is rarely the better method for tax purposes for the entire ownership of the vehicle.
• To calculate the Business Vehicle Expense (BVE) Deduction:
  A) add up all of the actual vehicle expenses for the year (examples, purchase costs, registration and tags, depreciation, fuel, insurance, lease payments, maintenance, repairs, etc.).
  B) calculate your business vehicle usage ratio (business vehicles miles driven for the year dividend by your total vehicle miles driven for the year).
  C) then A (actual vehicle expenses for the year) times B (your business vehicle usage ratio) and this amount equals your Business Vehicle Expense (BVE) deduction for the year.

In summary:

• In all of my years of preparing taxes plus studies after studies of attorneys, CPAs, and other tax folks smarter than me says 99% of the time to use the “Standard Mileage Rate” Business Vehicle Expense (BVE) Method over your entire ownership of the vehicle.
• So for 99% of business owners that do not buy a different vehicle each and every year, you have to look at what is best for their entire ownership of the vehicle since it involves two or more tax years and NOT just the year of purchase.
• Now if you buy an expensive vehicle each and every year and you never ever skip a year of buying an expensive vehicle, then the “actual math” might say to use the “Actual” Business Vehicle Expenses (BVE) Method.

Other Business Vehicle Expenses (BVE) Items to Consider and Know

• Business Miles include traveling from your office or place of work to another place for business purposes and are generally tax deductible if you are a business owner and/or self-employed (yes, if you are self-employed, then you are a business owner for tax purposes)
• Commuting Miles are the miles you drive between your home and your regular place of work. They are considered personal miles, are not tax deductible, and should not be included in your business mileage calculation.
• Generally, once you select a method for business vehicle expenses (BVE), done in the year you purchase the vehicle, you must stick with it over your entire ownership of the vehicle.
  Yes you can pick the “Standard Mileage Rate” Business Vehicle Expense (BVE) Method when you buy the vehicle and then the following year mistakenly switch to the “Actual” Business Vehicle Expense (BVE) Method. Mathematically that would generally be an absolute horrible thing to do and that is why the IRS allows it.
• Regardless of what business vehicle expense (BVE) method you pick, you can always separately deduct various business expenses such as:
  most advertising and marketing expenses / items that you put on your vehicle, business related portion / ratio of your vehicle loan interest, and business related parking and tolls expenses.
• If your business owns five or more vehicles, the IRS considers this a “Fleet Operation” and you are required to use the “Actual” Business Vehicle Expense (BVE) Method.
• Business Vehicle Expense (BVE) Method chosen is based on each separate vehicle and not the entire business, unless, as mentioned above, the business owns five or more vehicles.

  Our disclaimer first, we are NOT attorneys and/or insurance agents, and we do NOT give any type of insurance and/or legal advice, but if a business / business owner has two or more vehicles but less than five, for example:

  Vehicle one is used for everything (their business, all of their business and personal errands, their family, personal uses, personal vacations, etc.), then generally the “Standard Mileage Rate” Business Vehicle Expense (BVE) Method should be used on this vehicle (unless they replace it each and every year with an expensive vehicle as discussed above).

  Vehicle two is used 100% exclusively for the business (examples, delivery vehicle, funeral hearse, service vehicle with parts / storage / toolboxes / tools, towing / wrecker vehicle, etc.). and/or the business has to title the vehicle in the business name for insurance and/or legal purposes, then generally the “Actual” Business Vehicle Expense (BVE) Method should be used on this vehicle.

• For trailers and/or other types of equipment (examples, concrete mixers, stump grinders, tow dollies, woodchippers, etc.) pulled behind your business vehicle, it does not follow any of the above. They are completely separate pieces of equipment, subject to their separate depreciation, and their expenses are deducted just like any other business equipment purchased.
• For more info on vehicle expenses, please visit  IRS.GOV  and look for:
  Current Years Standard Mileage Rate, IRS Publication 463 (Travel, Entertainment, Gift, and Car Expenses), Publication 334 (Tax Guide for Small Business), Topic Number 510 (Business use of car), and other IRS info / resources.

H) Married folks ask me all of the time should they file Married Filing Jointly (MFJ) or Married Filing Separately (MFS) 
There are a couple of exceptions, but 99% of the time, if you are married as of December 31, 20XX, it is always better to file Married Filing Jointly (MFJ) for 20XX.

Some exceptions are: one person has back child support, has a bankruptcy, has some other type of negative financial history, loan repayment to the government like student loans is based on their income, etc.

We can run a report from our tax software after we prepare your Married Filing Jointly (MFJ) Tax Return to go from “99% sure” to “100% sure” based on your actual facts and numbers.  

I) Please make sure to include the owner(s) and some info about the owner(s) if you have a website for your Locally Owned Business
Many locally owned business websites miss a critical element: they fail to introduce the owner or provide meaningful ways for potential clients and customers to connect with them. This oversight wastes valuable time, money, and resources for the business, while also leaving customers frustrated. Unfortunately, it’s especially common among newer businesses just starting out—after reviewing their website, you often have no idea who owns the business or how to reach them directly.

This isn’t about large corporations, regional companies, or franchises that rely on brand recognition. Local ownership is different—customers want to know who they are supporting and build a personal connection with the people behind the business.

Owners often ask why their businesses struggle. The answer is simple: give customers a way to connect with you. People prefer to do business with individuals they know, trust, or share a connection with. That connection might come from mutual friends, schools, workplaces, churches, organizations, clubs, or shared hobbies and interests.

When a local business hides its ownership, it raises questions. Why wouldn’t they want to be transparent? A lack of visibility can unintentionally create doubts about legitimacy, honesty, or professionalism.

The takeaway is clear: if you’re a locally owned business, make sure your website tells your story, introduces the owner(s), and provides clear, authentic ways for customers to connect.

J) Boundaries
1) Set your Boundaries
2) Communicate your Boundaries
3) Enforce / Keep your Boundaries