As we approach the close of 2025, now is the ideal time to review your financial situation and plan proactively to minimize your tax liability for the year. Many of you who filed 2024 individual returns (Form 1040) were issued 2025 quarterly estimated tax vouchers in your 2024 tax package based on your 2024 results. Now is the time to make sure they are all scheduled to be paid by January 15, 2026. Please remember that these estimates may not reflect changes in your 2025 income or deductions. If you anticipate any anomalous taxable events this year – such as the sale of a home, receipt of inherited assets, liquidation of stock positions, business transactions, or other one-time income – your quarterly payments may no longer be sufficient. We are available to review your current year situation and help you adjust accordingly.
For our S Corporation owners, year-end planning is especially important due to reasonable compensation considerations, potential changes in income, and shareholder basis issues. If you are expecting significant deviations from prior years and have not heard from us by December 8, please reach out so we can ensure proper planning before year-end deadlines.
We also want to remind pass-through entity clients that the 2025 GA Pass-Through Entity (PTE) Tax payment is due December 15, 2025. With the recent passage of the OBBBA, certain provisions affect the federal SALT deduction, which may reduce the comparative benefit of electing or continuing the PTE tax for some taxpayers. If you are uncertain whether the PTE election remains advantageous in your situation, we strongly recommend discussing this with us before the due date.
The primary goal of our year-end tax planning process is to ensure clients meet IRS Safe Harbor requirements – meaning you have paid in enough tax during the year to mitigate underpayment penalties. If we determine that additional tax may be owed above your safe harbor amount, we will advise you of the difference and recommend either an optional payment by December 31, 2025 (or January 15, 2026) or wait and pay the balance with your 2025 return or extension by April 15, 2026.
We appreciate the opportunity to assist you in making the most of this year’s tax planning opportunities. As always, we are here to help you stay informed, compliant, and prepared.
All the Best,
Lynn Spencer, CEO