Tax Season Has Started What Still Matters Before You File

Tax season has started, but your tax outcome is not final until you file.

January is not the month to change what happened last year. It is the month to decide whether what happened last year is being reported correctly, supported properly, and positioned safely.

If you are unsure whether your return will reflect verified information or assumptions, schedule a short discussion now. Call (678) 717-9818, email steve@bookstaxesatl.com, or message Steve on LinkedIn at www.linkedin.com/in/steveperrybtm.

Most filing stress comes from one mistake: treating preparation as the start of the process. Preparation is the final step. Verification is what makes filing predictable.

What Still Matters in January

Even though the calendar year is closed, several items are still open to review and control before you file.

1. Whether the books support the story
A clean looking set of books is not the same as tax ready books. Books can be balanced and still be wrong for tax purposes because of misclassification, incomplete categorization, or transactions recorded in ways that do not support the position you plan to take.

Examples that commonly surface during January review include:
Owner draws mixed with business expenses
Meals and travel recorded without purpose support
Repairs recorded where improvements belong
Contract labor recorded without proper backup

These are not minor details. They affect what you can deduct, what you can defend, and what triggers questions.

2. Whether income is categorized correctly
Income reporting is not just about totals. It is about type and source. Incorrect classification can create mismatches with information returns and increase notice risk.

Common issues include:
1099 income split incorrectly between personal and business activity
Payment processor totals not reconciled to bank deposits and records
Multiple streams of income combined without clarity

In January, the goal is to confirm the return will match what the IRS is likely to see.

3. Whether mileage and vehicle use can be substantiated
Vehicle deductions are one of the most common areas where taxpayers believe they are fine until they are asked to prove it. If business use is claimed, support must exist and be consistent.

If you use the standard mileage method, the question is still documentation. Dates, business purpose, starting point, ending point, and total business miles must be supportable.

If mileage is thin or reconstructed, filing positions should be evaluated carefully before the return is submitted.

4. Whether payroll and owner compensation align with reporting
Payroll does not end when the last paycheck clears. What matters in January is whether payroll records, yearend forms, and the books agree.

Misalignment here can create penalties and notices, especially when wage forms do not match the return posture.

5. Whether the balance due is known early enough to control it
Many taxpayers do not discover a balance due until the return is nearly complete. That is the worst timing. In January, you still have time to plan how you will pay, whether an extension is appropriate, and whether estimated payments or withholding need adjustments going forward.

A predictable filing season usually starts with one statement:
We already know whether there will be a balance due.

The Risk of Filing Fast

Speed feels productive in January. It is not always protective.

When filing is rushed, these outcomes become common:
A return is filed with incomplete records because the deadline feels close
A position is taken without support because it reduces the balance due
Books are forced to fit a number rather than reconciled to reality
A taxpayer learns the real problem only after a notice arrives

Fast filing can trade short term relief for long term exposure.

Filing Is a Commitment

A filed return is not just compliance paperwork. It is a formal position with consequences.

It affects:
Your audit and notice exposure
Your penalty risk
Your ability to correct without escalation
Your leverage if IRS resolution becomes necessary later

January is often the last practical window to ensure the position you file is supportable and consistent.

The Books Taxes and More Pre-Filing Review

At Books Taxes and More, a January review is designed to answer one question:

Are you filing with clarity or filing with hope

That review focuses on:
Reconciling books to reporting reality
Identifying exposure before filing
Confirming documentation for key positions
Clarifying the expected outcome early
Deciding whether filing now or extending is the safer move

This is not about chasing deductions. It is about controlling the story the return tells and making sure you can support it.

If you want to know where you stand before you commit to filing, call (678) 717-9818, email steve@bookstaxesatl.com, or message Steve on LinkedIn at www.linkedin.com/in/steveperrybtm.

Recommended Next Steps

If you are gathering documents or working with a preparer and you want to reduce surprises, the next step is verification.

A short discussion can determine whether you are ready to file or whether a review should occur first. Call (678) 717-9818, email steve@bookstaxesatl.com, or message Steve on LinkedIn at www.linkedin.com/in/steveperrybtm.

 FAQ

Is it too late to review in January?
No. January is often the most important review window because filing decisions are imminent.

Does reviewing mean I have to delay filing?
Not always. Sometimes review confirms you are ready to file quickly and confidently.

What if an issue is found?
Then you get to decide deliberately rather than reacting later through amendments, notices, or penalties.

Do I need this if my books are clean?
Clean books are helpful. The question is whether they support the tax positions being taken.

Step 10. 150 to 200 Character Summary

Tax season has started but outcomes are not final until you file. Learn what still matters in January so you file with verified information, not assumptions.