And Here We are... Tax Season

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Every first week of January, I go through the office singing, set to the Christmas song, It’s the Most Wonderful Time of the Year. The lyrics are:

     It’s the most wonderful time of the year
     There’ll be money a flowing
     Clients a calling
     And daddy will stand up and cheer
     It’s the most wonderful time of the year

We are honestly very blessed. We have taken a cyclical business, and learned to make money all year. However, tax season is a time when we make about 40 percent to 50 percent of our income for the year. It’s a major influx of cash, and after all of these years, we finally have it down.

Around March we prepay our rent for the year. Our landlord loves us. I pay myself and my wife large sums of money that we use to max our retirement plans, we fund our Health Reimbursement Account, prepay our monthly health insurance, and any other monthly bill that we are under contract to pay.

Then in April, as an insurance policy, we open a CD with our bank that has a six-month term, and put about $20,000 in it, which really comes in handy in November and December, when income tanks. We use tax season as a time to sell clients on other services: estate planning, monthly accounting, tax planning, etc. Those are all of the good things about tax season.

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About Craig W. Smalley, EA

Craig Smalley

Craig W. Smalley, MST, EA, has been in practice since 1994. He has been admitted to practice before the IRS as an enrolled agent and has a master's in taxation. He is well-versed in US tax law and US Tax Court cases. He specializes in taxation, entity structuring and restructuring, corporations, partnerships, and individual taxation, as well as representation before the IRS regarding negotiations, audits, and appeals. In his many years of practice, he has been exposed to a variety of businesses and has an excellent knowledge of most industries. He is the CEO and co-founder of CWSEAPA PLLC and Tax Crisis Center LLC; both business have locations in Florida, Delaware, and Nevada. Craig is the current Google small business accounting advisor for the Google Small Business Community. He is a contributor to AccountingWEB and Accounting Today, and has had 12 books published on various topics in taxation. His articles have also been featured in the Chicago Tribune, New York Times, Yahoo Finance, Nasdaq, and several other newspapers, periodicals, and magazines. He has been interviewed and been a featured guest on many radio shows and podcasts. Finally, he is the co-host of Tax Avoidance is Legal, which is a nationally broadcast weekly Internet radio show.

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Jan 16th 2018 17:21

Great article! Although I must admit, you nearly lost me during your first few paragraphs describing the joys of tax season. Haha.

This will be my 11th tax season, and 8th as a CPA. I often find myself doing things for free for "friends and family," and undercharging for services that I really shouldn't be. My goal this year is to cut that out... so I really appreciate your timely advice. Thank you!

Thanks (1)
to apeet310
Jan 16th 2018 22:04

Think of it like this. Your time is a commodity that this person is willing to pay $x.xx for, during a time of the year when everyone wants your time. In July, you can chit chat, do things for free, etc. You could do this thing for free, or you can do this thing for $1000. Who gets your time?

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Jan 16th 2018 22:52

Hilarious!! And oh, so true!

A sense of humor is essential to get through a tax season.

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