Each tax season comes with unique challenges and 2022 is no exception. The IRS wants taxpayers to get the information they need as quickly as possible. Taxpayers should keep these tips in mind when they get ready to file. Following them will help get this year's taxes done accurately and refunds issued timely.

• Choose a reputable preparer. Taxpayers can self-prepare or use a tax preparer. IRS.gov has resources to help people choose a tax pro. The IRS Directory of Federal Tax Return Preparers provides information on who has a professional credential or participates in the IRS Annual Filing Season Program. We could stop here, since if you choose GLM, we will help with the rest, but...

• Avoid errors. Taxpayers should review their tax return so they can file a complete and accurate return and avoid refund delays. Filing electronically is the most accurate way to file. Taxpayers should check all names and double check all Social Security numbers, bank account and routing numbers.

• Gather records. Good recordkeeping makes preparing a tax return easier. It can also ensure taxpayers do not overlook deductions and credits.
 
• Start with IRS.gov. IRS.gov is available around-the-clock and it's the fastest way to get assistance. Millions of people use IRS.gov for filing and paying taxes, getting information about their accounts or answers to tax questions. The IRS Services Guide outlines the many ways taxpayers can get help from the IRS.
 
• Use online tools. IRS.gov has many useful online tools. The Interactive Tax Assistant provides answers to many tax questions specific to an individual's circumstances. It gives the same answers that an IRS representative would give over the phone.
 
• Report all income. Taxpayers must report their taxable income from all sources, including the gig economy, Forms W-2, Wage and Tax Statements, and Forms 1099. Other income may be taxable, even if the taxpayer does not receive a statement.

• Report unemployment benefits. Taxpayers who received unemployment benefits in 2021, must report the amount as taxable income on their tax return.

• Access online account or review IRS letters. This year, people must have the total amounts of their advance child tax credit payments and their Economic Impact Payments on hand when filing. They can check online account or review Letter 6419, 2021 Total Advance Child Tax Credit Payments, and Letter 6475, Your 2021 Economic Impact Payment, for their total payment amounts to help them file an accurate return.

• File electronically. IRS Free File online can help taxpayers claim their earned income tax credit, child and dependent care credit, child tax credit and recovery rebate credit. Some Free File options are available in Spanish. MilTax online software is available for members of the military and certain veterans, regardless of income, and is offered through the Department of Defense. Eligible taxpayers may prepare and file their federal returns and up to three state returns for free.

• Choose direct deposit. Filing electronically and choosing direct deposit is the safest and easiest way to file an accurate tax return and the fastest way to get a refund.

LEGAL
What are you buying? If it is a stock purchase is it a C Corp? S Corp? LLC?

• Is the business in good standing with the state and feds?
• Any pending lawsuits? Governmental proceedings?
• Survey on land
• Any independent contractors that should have been classified as "employees"
• what is the property zoned?
• Can any of it be sub-divided at a later date and sold off?
• Does the owner really own it? Do they have the legal authority to sell?
• Any workman comp claims? Unemployment claims? -any patents or copyrights of logos?
• Any business license and are the transferrable?
• Any tax registration certificates? Are they transferrable?
• Is the business in compliance with zoning laws?
• Any toxic waste or environmental problems
• Do they own photos, testimonials that may be used in print collaterals or the website?
• Any employee contracts with non-competes?

MARKET PERCEPTION
What is it? With Customers and Vendors?

• What is its brand position? Is it healthy?
• Do they have a good reputation?
• Do they have a customer database?
• Do they have a prospect database?
• Do they know how large their market is?
• Do they have a CRM?
• How are they perceived in the marketplace?
• Who are their key partners and alliances?
• Are their prices high? Low? Middle?
• Are their competitors who are larger, cheaper, quicker, faster that have the customer's attention?
• What are the barriers to entry to this business?
• Does the business have significant vendors or customers?
  • Any vendors that we use that we purchase 10% or more of our product from?
  • Any customers that make up 5% or more of revenues/sales?

  
MOTIVATION TO SELL

• Is it a motivated seller and why?
• How much debt does he need to pay off? (mortgages loans?)
• How much cash does the seller immediately need?
• Does he need that cash all at once?
• Is he looking for a way to avoid capital gains? Or reduce or spread out his tax liability?
• Are there other family members involved in the decision making process?
• Has the reputation of the company been damaged at all?
• How dependent has the business been on the current owner? Relationships with employees? Customers? Vendors?

 
STRATEGIES TO CONSIDER WHEN BUYING A BUSINESS

• Consider buying on installment
• Don't ever be shy in asking for information- your strategy is to "discover" as much as you can
• Consider holding back some of the purchase price until after closing- say six months or a year in case you suffer a loss due to the owner failing to "disclose" information
• Consider buying land in one deal and the company in another- if the two are indeed owned separately
• Consider and 'earn-out' provision where seller only gets paid if certain financial milestones are met

ASSETS

• What assets are you buying?
• Any intellectual property? (trademarks, trade secrets)
• Any inventory or goods obsolete? What is their value?

CORPORATE CULTURE -WHAT IS IT LIKE?

• What's the turnover of employees?
• How many employees? Their skill sets?
• Any training programs (sexual harassment, leadership, team building?) -Any written policy books, employee manuals?
• Will the owner let you interview any of the employees?

CUSTOMERS AND MARKET SEGMENTS

• Any salespeople that have key customer relationships?
• Who do they sell? What primary markets and what secondary markets?
• How do they currently keep their customers?
• How do they reach their prospects and customers with their message? (Channels?)
• What is their competitive advantage?

FINANCIAL QUESTIONS

• cash flow statements
• balance sheets
• accounts payables and receivables
• benefit contracts
• insurance/pension/401 K
• outstanding debts
• debt review
• UCC-a forms - to find out who extended credit to the company -what secured assets were tied up in previous loans
• Do they have healthy margins?
• How do their customers pay for their products?
• Are their expenses in line with their revenues?
• Where will your down payment come from?
• What sources of financing do you have? (friends, family,)
• What sources of funding do you have (self-directed funds from retirement accounts, stocks, home equity)?
• Is the seller open to seller financing?
• Is the seller open to "run to own”?
• Can you furnish a statement of personal net worth and resume?
• What are the terms of renting the building/land if you are not buying?

 

As a business owner, I get it– that first year or two of getting a business off the ground is like an emotional roller coaster. There are so many shifts needed in our mindset when we make the decision to play full-out and launch a business!  
 
I remember when I had to do my accounting myself. I had a working knowledge of QuickBooks at the time but did not use it to its full potential. What else was I missing? What did I need to know that I didn't know?
 
That’s why I was thrilled when my friend Laura Hitt told me that she was hosting an interview series around this very topic! Laura wanted to do her own research project to learn how other entrepreneurs and mindset experts have shifted the ways they look at entrepreneurship, themselves, and the world. 
 
It’s called New Business, New Mindset– Entrepreneurial Women: Learn the Tools & Tricks You Need to Develop an Entrepreneurial Mindset, Breakthrough Barriers and Realize Your Vision! 
 
I have a complimentary ticket for you to participate. You can register using this link: https://bit.ly/3rigQhD
 
Just so you know, you can watch from your home or on the go, and you’ll receive access to two recorded interviews per day, for 7 days! 
 
This series is for women who want to develop their own entrepreneurial mindset and set themselves up for success in their new business, in spite of the many challenges of entrepreneurship. 
 
The top-level entrepreneurs who are interviewed in this series are experts in developing a mindset that will help you breakthrough your barriers and stay true to your vision, in spite of the emotional roller coaster of entrepreneurship. These speakers are sharing their best tips and tricks for altering the way you think, so that you don’t have to spend decades alternating between the highs of launching a business, and the lows of being stuck, overwhelmed and immobilized. 
 
They’ve lived it, and they've become experts in it. 
 
So let me ask you this: What would it be worth it to you to be able to sit down with 14 top-level entrepreneurs and mindset experts and pick their brain about the best ways to think as a new entrepreneur? 
 
For me, it’s worth A LOT and I wish I’d had this when I started! That’s why I’ll not only be a speaker, but I’ll be watching the other entrepreneurs too. 
 
Register here with this complimentary ticket: https://bit.ly/3rigQhD
 
In case you are wondering who is speaking, beside myself, here is just a handful of other amazing speakers who are interviewed: 

• Sam Silverstein, keynote speaker, consultant, best-selling author of 12 books including No More Excuses, The Theory of Accountability and The Success Model
• Erica Strong, speaker, trainer, business and life coach, author (Finishing Strong), podcast host
• Shanie Salmon-Godfrey, 11X best-selling author, business & financial coach, podcaster, author of The Entrepreneurial Mindset
• Jonny Cooper, Entrepreneur, over 8 figure business owner, founder of Jonny Hates Marketing
• Jose Alfaro, serial entrepreneur and COO of Co.starters which supports small businesses and entrepreneurs all across the US… And more! 

 
Click here to register and learn more: https://bit.ly/3rigQhD