Fortitude Tax & Accounting

💼 S Corporation Success: Key Strategies to Avoid Risks and Ensure Compliance 💼

Did you know that while S Corporations offer great tax savings, they also come with critical compliance requirements? At Fortitude Tax & Accounting, we’ve laid out the top strategies to help your business thrive while avoiding common pitfalls:

Keep corporate and personal finances separate.
Pay reasonable compensation to shareholder-employees to avoid IRS scrutiny.
File all necessary forms, like Form 1120-S, on time to stay compliant.
We’re here to help you navigate the complexities of S Corporation compliance. Whether you’re just starting out or already managing an S Corp, our team, led by Melissa Calwell, CPA, EA, offers expert tax planning and preparation services to support your business’s long-term success.

🌐 Read the full guide and book your consultation today: https://loom.ly/x1DFIzY
📍 Fortitude Tax & Accounting - Serving therapists, real estate professionals, and small business owners in Stansbury Park, Utah.

Starting a new business? Congrats! It's an exciting time and also an important time to be checking all the proper boxes. The legal requirements for starting a business are going to vary by state, so search online for your state’s specific rules.

Generally speaking, you’ll need to:
✅ Choose a business entity
✅ Choose a business name
✅ Check to see if that name is available in your state
✅ Register your business name with your state
✅ Register for a federal EIN* (Employer Identification Number)
✅ Open a business bank account (you’ll need an EIN to do this, plus it will come in handy for paying all of those registration fees)
✅ Check into any state-mandated business licenses or permits required for your type of business

*Note that not every business needs an EIN. If you don’t have employees, many sole proprietors and single-member LLCs aren’t required to get one. But they are free and it provides for easier scalability down the road.

All of this will take some time and patience. Be prepared to fill out multiple online forms and be sure to save all of your registration documents in a safe place. Fortunately, most of it can be done online these days.

How much does a mindset shift play into success in your job? What other factors do you think bring success in your everyday work?

https://www.inc.com/peter-economy/12-mindset-shifts-for-unlimited-success.html

What’s the most intimidating part of dealing with the IRS for you?

Yes, you can still itemize deductions, but if your total itemized deductions are under the standard deduction threshold, you don't need to itemize. That threshold currently sits at $14,600 for singles and $29,200 for couples.

If your total itemized deductions exceed that amount, you should be itemizing. Here are the kinds of things that can be itemized:
- property tax & state income tax (up to $10k)
- mortgage interest (with some limitations)
- medical expenses over 7.5% of your gross income
- charitable donations
- state and local sales taxes

If the current standard deduction amount lowers (which it will in 2026 if legislation isn't passed to continue the current higher amount), then itemizing will be a game changer.

Not sure where you stand on all this? Let's talk.

Why Therapists Need Both Tax Preparation and Tax Planning

Did you know that tax planning is just as important as tax preparation? Many therapists don’t realize how much money they could save with a proactive strategy. 🧠

At Fortitude Tax & Accounting, we specialize in tax planning for therapists, helping you avoid missed deductions and optimize your savings. We work with you year-round to ensure you’re fully prepared for tax season without any surprises.

Ready to take control of your financial future? Let Fortitude be your trusted partner in maximizing your savings. Learn more about the benefits of tax planning for therapists here: https://loom.ly/nNOIy-w

The work of a business owner is about planning, focus and ex*****on (and later ... harvesting) vs. chasing the fad of the week, getting distracted, and wasting time -- time you can't ever get back.

How many times did you look at social media today to gawk at political train wrecks? How much of your headspace is currently taken up with "pressing" client/staff questions? How many rabbits can you chase at one time?

Now, more than ever: Plan, focus, execute and harvest.

Maximize Savings with Fortitude Tax & Accounting
Therapists, are you missing out on tax-saving opportunities? 🧐 At Fortitude Tax, we specialize in tax planning for therapists to help you avoid missed deductions and save more. Learn how proactive planning can benefit your practice: https://loom.ly/nNOIy-w

Why do you need an advocate when you have a tax problem or major tax debt?

Negotiating power.
The taxpayer has legal "wiggle room," and tax resolution experts like us know where to find it.

While December 2025 is still quite a way off, it's really not in terms of being strategic with your taxes.

Here's why. Many provisions of the Tax Cuts and Jobs Act are set to expire when 2025 closes.
INDIVIDUALS - The big areas that will affect individual taxpayers are narrowed tax tiers, estate tax exemptions, standard deduction dropping, retirement contributions, and child tax credit reductions.
BUSINESS OWNERS - The Qualified Business Income deduction will significantly drop and could mean up to a 20% increase in your taxable income.

So, timing is going to be a huge factor in a lot of these decisions. As well as having a grid for what's going to change in your specific situation and preparing for it rather than being surprised by it.

Want to talk about moves you can and should be making starting this year? DM us or give us a call. We're here for you.

Building enduring businesses these days is difficult. A tough economy and ever-fluctuating customer interests pose regular challenges to business owners.

So, how do you build a business to last? Obviously, there are no easy answers, but we loved what this article had to say about it.

https://www.jimcollins.com/article_topics/articles/building-companies.html

Ever feel like tax deadlines are like that distant relative who shows up unannounced? Well, here's your friendly reminder that Uncle Sam is knocking on the door again. The 3rd quarter estimated payment deadline is September 15th. Since that falls on a Sunday, you'll still be considered "on time" in your payment if you pay on Monday the 16th.

Set a reminder and make sure you've got things in order to make that deadline.

We'd like to take this Labor Day to thank all of you who've helped us change the stigma that's often associated with working in taxes.

Despite the stress that has come over the past few tax seasons, we still love getting to serve and represent you with the IRS.

May your Labor Day be restful.

Need something interesting to listen to other than the doomsday scroll and the latest tax change?

Try one of the most popular Ted Talks of All Time.
Ever listened to one of these before?
Which one and what did you like about it?

https://www.ted.com/playlists/171/the_most_popular_ted_talks_of_all_time

Bookkeeping cleanup usually becomes necessary for two main reasons: error and neglect. See how you do on the following little quiz:

🛑 Do you have expenses that have been incorrectly entered in QuickBooks?
🛑 Do you have expenses or income that hasn’t been tracked at all?
🛑 Has an employee ever misclassified an expense?
🛑 Ever forget to record a transaction?
🛑 Have your business books been reconciled at least on a monthly basis?
🛑 Do you audit your financial statements regularly to make sure everything that needs to be recorded, is being recorded?

Whatever your reasons, you might be realizing right now that you’re sitting on a financial mess.

Are you having a hard time getting an accurate picture of your finances?

Q: When will the IRS start levying your wages to pay off your tax debt?

A: It's one of the most common problems that drives clients to our office. An IRS wage levy is a situation that can be solved. The IRS mostly just wants effective communication and an agreed-upon plan for compliance. Levies are issued (generally) when they haven't heard anything from you about payment.

Here's a "big picture" concept that will bring large returns: Investing in sales and marketing automation.

Marketing is the key to growing your business. And, automation is a way to run your company while you work on growing your company ... in a systematic, "hands-free" sort of way.

Which marketing/sales tasks have you successfully automated in your business? Or how has automating some of those processes been helpful?

Looks like sitting can make you... dumber(?). One more good reason to get some physical activity in your daily work routine.

Got any favorite or creative short workouts that could be done inside or around your work schedule?

https://www.inc.com/jeff-haden/neuroscience-says-6-to-10-minutes-a-day-can-make-you-smarter-more-focused-increase-size-of-your-brain.html

What makes debt to the IRS so difficult is that it often comes paired with other difficult financial situations. Which makes it seem so much easier to avoid the issue altogether.

However, the reality is that avoiding your tax debt can be worse than facing it. The IRS charges penalties and interest on unpaid taxes. If you're afraid to file your tax return before the extension deadline or in April -- because you know you can't pay -- well, you're just digging a deeper hole with failure to file penalties and other (increased) penalties in the new tax code.

So let's move past avoidance, and finally take positive action.

When you're interacting directly with clients, can you explain what you offer in 10 words or fewer? Perhaps 20? If not, it's time to work with your team to craft a concise elevator pitch. When you have this ready, you can clearly present your value proposition when the opportunity arises.

And then online, prep straightforward and readable content. Make sure your website or digital platforms have clear descriptions, including upfront pricing.

Have you managed the 10 words or fewer sales pitch for your business? If so, share below.

🏡💼 Did you know your home office can help you save on taxes?

Learn how to calculate your space, track expenses, and maximize your deduction. Don’t leave money on the table!

Check out the article from Fortitude Tax & Accounting here: https://loom.ly/hQJ5Usw

Using AI in your business can be transformative... as far as the employees are willing to learn it and implement it into their processes. And it can be difficult to figure out the best way to help them do that. Here's one CEO's approach to AI integration.

What are some AI tools you've adopted into your line of work?

https://www.zdnet.com/article/3-ways-to-help-your-staff-use-generative-ai-confidently-and-productively/

How do you feel about the IRS using AI to help them with the auditing process?

A. Unsure
B. The IRS has my full trust
C. Could be good
D. Are they crazy?

🚨 Is it time to start thinking about your 2024 taxes? You Bet It Is! 🚨

We're already more than halfway through the year, and tax season will be here before you know it. Don't get caught off guard with last-minute surprises. Proactive tax planning can help you avoid unexpected bills and maximize your savings!

💡 What’s the difference between tax preparation and tax planning?
Tax preparation happens after the year ends.
Tax planning happens now, giving you control over your financial future.

At Fortitude Tax & Accounting, we specialize in helping you stay ahead of the game with our structured tax planning process. From personalized meetings to comprehensive projection packages, we've got you covered.
✨ Ready to take control? Check out our latest blog post to learn more about why NOW is the best time to start planning your taxes: https://loom.ly/9fwQ3Xs

📅 Don't wait! Secure your tax planning session today and enjoy peace of mind all year long.

Less than two months until the tax extension deadline. It'll be here before you know it.

Reminder: A filing extension doesn't mean more time to pay Uncle Sam.

Time to get your filing squared away.

Do you have a problem knowing what to do with your financial data?

You need an experienced accountant to break it all down into understandable insights and actionable takeaways.

Some examples of what an accountant can do with the data your bookkeeper provides:
🔹 revenue and expenses analysis to assess profitability
🔹 cash flow examination to evaluate a company's liquidity
🔹 debt-to-equity ratio calculation to measure financial risk
🔹 inventory turnover numbers to gauge efficiency in managing stock
🔹 customer payment cycle analysis to assess collection effectiveness
🔹 industry benchmarks to compare a company's performance to competitors.

Thinking about electing S Corporation status? 🧐

It can be a smart move, but there are some risks you need to be aware of.

Our latest blog post covers the essential steps to protect your business. Don’t miss out on these expert tips! 💼

👉 S Corporation Success- Link in Comments 👇🏻👇🏻👇🏻

Hashtags:

Sometimes we all just need a good story to help us see the good and have hope for the future.

This one is extra good. Let us know what you think.

https://www.stripes.com/history/2024-08-12/nurse-hospital-wwii-14840208.html

📝 Tax Preparation vs. Tax Planning: Do You Know the Difference? 🤔

Many people think tax preparation and tax planning are the same thing, but they’re actually two separate services—both crucial for optimizing your financial health!

🔍 Tax Preparation is what happens every year when you file your taxes, making sure everything is accurate and on time.

📅 Tax Planning is a proactive, year-round approach that helps you minimize your tax liability and plan for the future.
Want to learn more about how both services can benefit you?

Check out our latest blog post to understand why you might need both! (Link In Comments 👇🏻👇🏻👇🏻)

The tax gap – the difference between taxes owed and taxes paid – is a yawning chasm. Estimates suggest it's somewhere around 688 billion, and the IRS is determined to close that gap with the help of AI.

What exactly does AI and auditing mean for you as a taxpayer?

You need to understand how the IRS is using AI (especially in the realm of auditing)...
And you need to take proactive steps to protect your interests.

Accuracy and completeness are essential, so...
🗂️ Keep detailed records of income, expenses, and deductions.
🔎 Make sure you’re looking out for potential errors... either with software or an expert’s help.