Preparing for Tax Day: Last-Minute Tax Tips for Businesses and Individuals
Written By: Tim Baker
Tax day is fast approaching, and if you’re feeling the pressure, you’re not alone. Whether you’re an individual trying to maximize your refund or a business owner looking to minimize tax liabilities, last-minute strategies can make a significant difference. While early preparation is always ideal, there are still steps you can take to ensure accuracy, claim all available deductions, and avoid penalties. In this guide, we’ll walk through essential last-minute tax tips to help you navigate the deadline with confidence. And if you need expert assistance, Baker, Chi & Parkey is here to help streamline the process.
Last-Minute Tax Tips for Individuals
As the tax deadline looms, last-minute filers still have options to ensure accuracy, maximize deductions, and avoid unnecessary penalties. Even if you’re down to the wire, taking the right steps now can make a big difference in your final tax bill or refund. Here are some key strategies to help you file your individual taxes efficiently and effectively.
Gather All Necessary Documents Quickly
Before rushing to file, take a moment to ensure you have all essential paperwork. Missing or incorrect documents can lead to mistakes or delays in processing. Key forms to collect include:
Income statements: W-2s, 1099s, Social Security benefits, and any other income documentation.
Expense records: Receipts for deductible expenses such as medical bills, educational costs, or charitable donations.
Investment and retirement account statements: 1099-INT, 1099-DIV, or 1099-R forms.
By double-checking these items, you can avoid errors that could result in IRS audits or delayed refunds.
Maximize Deductions and Credits
Don’t leave money on the table by overlooking tax breaks that could lower your taxable income or increase your refund. Some of the most common deductions and credits include:
Student loan interest deduction: If you paid interest on student loans, you may be eligible for a deduction of up to $2,500.
Medical expense deductions: If your medical expenses exceed 7.5% of your adjusted gross income, you may be able to deduct them.
Child tax credit and earned income tax credit (EITC): These credits can significantly reduce your tax burden, especially for families with dependents.
Home office deduction: If you worked from home and meet IRS guidelines, you may be able to deduct a portion of your rent, utilities, and internet costs.
Reviewing your eligibility for these tax breaks can result in substantial savings.
Contribute to an IRA or HSA for Additional Tax Benefits
Even at the last minute, you can still make tax-advantaged contributions that lower your taxable income. If you haven’t maxed out these accounts, consider contributing before the tax deadline:
Traditional IRA: Contributions may be tax-deductible and can reduce your taxable income, depending on your income level and filing status.
Health Savings Account (HSA): If you have a high-deductible health plan, contributing to an HSA can provide tax savings now while helping with future medical expenses.
These contributions can not only lower your tax bill but also help you build financial security.
Consider Filing an Extension If Needed
If you’re feeling overwhelmed and don’t have all the necessary information, filing an extension may be a smart move. The IRS allows taxpayers to file Form 4868 to receive a six-month extension, giving you until October 15 to file your return. However, keep in mind:
An extension does not extend the time to pay taxes owed—estimated payments should still be made by the April deadline to avoid penalties and interest.
If you expect a refund, filing sooner is always better to receive your money more quickly.
An extension can give you the time needed to ensure accuracy and take advantage of all available tax-saving opportunities.
E-File for Faster Processing and Fewer Errors
Filing electronically can be a game-changer for last-minute filers. The IRS reports that e-filing significantly reduces errors compared to paper returns. Benefits of e-filing include:
Faster refunds (especially when combined with direct deposit).
Built-in error checking, reducing the risk of miscalculations.
Confirmation of receipt, giving you peace of mind that your return has been successfully submitted.
If you’re expecting a refund and want it as quickly as possible, choosing e-filing with direct deposit is the best way to go.
Even if you’re filing at the last minute, taking the right steps can help you reduce your tax liability, claim all eligible deductions, and avoid costly mistakes. If you need expert guidance or assistance, the professionals at Baker, Chi & Parkey are here to help. Don’t navigate tax season alone—reach out today for personalized tax support and filing solutions.
Last-Minute Tax Tips for Businesses
As tax day approaches, businesses must ensure they’ve taken the necessary steps to file accurately while minimizing their tax burden. Even at the last minute, there are still strategic moves that can help reduce tax liabilities, avoid penalties, and optimize deductions. Here are some essential last-minute tax tips for businesses to consider before the deadline.
1. Review Business Expenses and Deductions
One of the most effective ways to lower taxable income is by maximizing deductions. Make sure to review and categorize all business expenses properly, including:
Office supplies and equipment purchases
Business travel, meals, and lodging
Marketing and advertising costs
Utilities, rent, and internet expenses
Professional fees, including legal and accounting services
If you made any end-of-year purchases that qualify for deductions, ensure they are accurately reported. Also, double-check that you are claiming the right deductions for home office use or business vehicle expenses if applicable.
2. Double-Check Payroll and Contractor Payments
Accurate reporting of employee wages and contractor payments is essential to avoid penalties. Businesses must ensure that:
W-2s for employees have been correctly issued and reported.
1099-NEC or 1099-MISC forms have been sent to contractors who were paid more than $600.
Payroll tax deposits have been made on time to prevent IRS penalties.
A last-minute review of payroll records can prevent costly errors and ensure compliance with IRS regulations.
3. Take Advantage of Business Tax Credits
Businesses often overlook tax credits that can help reduce their tax liability. Before filing, check if your company qualifies for any of the following:
R&D Tax Credit: Available for businesses investing in innovation, development, or improving processes.
Small Business Health Care Tax Credit: If you provide health insurance to employees, you may qualify for a credit.
Employee Retention Credit (ERC): Businesses that retained employees during certain qualifying periods may still be eligible for credits.
By leveraging these credits, businesses can significantly reduce their tax liability while investing in growth.
4. Utilize Depreciation and Section 179 Deductions
If your business has recently purchased equipment, machinery, or technology, you may be able to deduct the full cost under Section 179 instead of depreciating it over multiple years. This can provide substantial tax savings if:
The assets were placed in service before year-end.
They qualify under IRS guidelines for immediate expensing.
Even at the last minute, reviewing your business asset purchases can help you take advantage of this beneficial deduction.
5. Consider an Extension for More Time to File
If your business is not ready to file an accurate return, requesting an extension (Form 7004 for businesses) might be the best option. However, remember:
An extension does not grant extra time to pay taxes owed—estimated payments should still be submitted by the deadline to avoid penalties.
Extensions provide time to gather financial records, properly classify expenses, and ensure all deductions and credits are claimed correctly.
If your business needs more time to finalize tax documents, filing for an extension can help avoid costly mistakes.
6. Verify Estimated Tax Payments and Avoid Penalties
For businesses that pay quarterly estimated taxes, it’s crucial to review whether sufficient payments have been made throughout the year. If you underpaid, making a final estimated payment before the deadline can help reduce interest and penalties.
For sole proprietors, freelancers, and self-employed individuals, ensuring estimated tax payments are accurate is especially important, as failing to do so can result in additional fees from the IRS.
7. File Electronically for Faster Processing
Similar to individual tax returns, businesses that file electronically can benefit from:
Faster IRS processing and confirmation of receipt.
Fewer errors due to automated checks in e-filing systems.
Quicker refunds if overpayments were made.
E-filing is especially beneficial for businesses that expect to receive a refund or need to avoid processing delays caused by paper filings.
With the tax deadline fast approaching, businesses still have opportunities to reduce their tax burden and ensure compliance. By reviewing expenses, leveraging deductions, and verifying payroll and tax payments, businesses can file accurately and avoid last-minute penalties.
If your business needs expert tax guidance, Baker, Chi & Parkey is here to help. Our team can assist with last-minute filings, extensions, and strategic tax planning to help your business stay financially sound. Contact us today for professional tax assistance before the deadline!
Common Pitfalls to Avoid
As the tax deadline approaches, it’s easy to feel rushed, and in that haste, mistakes can happen. Filing in a hurry often leads to errors that could result in processing delays, penalties, or even IRS audits. One of the most common missteps is failing to report all sources of income. Individuals who have multiple income streams—such as freelance work, stock sales, rental income, or side gigs—may forget to include those earnings, which can trigger red flags with the IRS. Businesses, too, must ensure that all revenue, including cash transactions and digital payment platform earnings, are accurately recorded to avoid discrepancies.
Overestimating deductions is another frequent issue, especially for those who file at the last minute. While taking advantage of tax deductions is essential for reducing taxable income, each deduction must be backed by clear documentation. Claiming business expenses that mix personal use, misreporting home office deductions, or inflating charitable donations without receipts can all lead to IRS scrutiny. Similarly, businesses that fail to properly categorize employee versus contractor payments can face penalties if they misclassify workers on tax forms.
Forgetting to check state tax requirements can also create unexpected problems. Many taxpayers focus solely on their federal return, overlooking state filing obligations that may differ in deadlines, deductions, and credits. This can result in late penalties or missed opportunities for state-level tax breaks. Businesses operating in multiple states must also ensure they comply with state tax nexus rules to avoid underpayment issues.
Another major oversight is waiting too long to file, leading to missed deadlines or incomplete submissions. While an extension can provide extra time to prepare, it does not extend the deadline for tax payments. Those who owe taxes but delay filing may face unnecessary penalties and interest charges, which can quickly add up. Even for those expecting a refund, filing late can mean waiting much longer for that money to be processed.
Ultimately, tax season can be stressful, but avoiding these common pitfalls can make the process much smoother. Taking the time to verify income, ensure deductions are legitimate, and meet all filing obligations can prevent headaches down the line. If you’re unsure about any aspect of your taxes, seeking professional guidance can help ensure compliance and maximize your financial benefits.
Conclusion
Filing taxes at the last minute doesn’t mean you have to make costly mistakes or miss out on valuable deductions. With careful review, strategic planning, and the right guidance, you can ensure accuracy while maximizing your tax benefits. Whether you’re an individual looking to optimize your refund or a business aiming to reduce tax liabilities, taking the right steps now can make a significant difference. If you need expert assistance, Baker, Chi & Parkey is here to help. Contact us today for personalized tax support and ensure you meet the deadline with confidence.
At Baker, Chi, and Parkey, our goal is to support your financial growth and stability with trusted guidance and personalized service. To learn more or discuss your unique needs, please reach out to us directly. Please note that the information provided in this blog is for general informational purposes only and is not intended to serve as legal advice. For specific advice regarding your situation, we encourage you to consult with one of our qualified professionals.