Does it feel like tax season has a way of sneaking up on you? One minute you are closing out a busy summer on the Cape or catching your breath after the holidays, and the next you are digging through emails and folders trying to remember where everything went. For business owners, healthcare workers, and families juggling full schedules, it is easy to push tax prep to the bottom of the list.
The truth is that a smoother tax season starts well before you sit down with your CPA. The more complete and organized the information you provide, the more accurate your return will be and the more opportunities there are to reduce surprises, penalties, or missed deductions.
Here are five things your CPA needs before tax season begins and why each one matters.
1. Any Changes to Your Personal or Business Information
This may seem basic, but it is one of the most common causes of delays and errors.
Your CPA needs to know if anything changed during the year, including:
- A new address or mailing address
- A change in marital status
- New dependents or dependents no longer living with you
- A new business entity, location, or ownership change
- A new Social Security number or employer identification number
For businesses, this also includes changes in partners, shareholders, or officers, as well as any new bank accounts or credit cards used for business activity.
Why this matters: Tax returns rely heavily on matching information already on file with the IRS and the state. Even a small mismatch can trigger notices or slow down refunds. Letting your CPA know about these changes early helps ensure everything lines up correctly from the start.
2. Last Year’s Tax Return and Any Tax Notices
If you are working with a new CPA, or even if you are returning to the same one, last year’s return is an important reference point.
You should provide:
- Copies of your most recent federal and state tax returns
- Any notices or letters received from the IRS or Massachusetts
- Information about extensions filed or payments made
Why this matters: Prior year returns often include carryovers, such as capital losses, credits, or depreciation schedules, that affect the current year. Notices from the IRS can also signal unresolved issues that need to be addressed before filing again. Bringing these documents upfront helps avoid repeating mistakes or missing items that carry forward.
3. A Complete Picture of Your Income
Income is one area where gaps can cause real problems. The IRS receives copies of many income documents directly from employers, banks, and payment platforms. If something is reported to them but missing from your return, it can result in a notice later.
For individuals, this includes:
- W-2s from employers
- 1099 forms for contract work, interest, dividends, or unemployment
- Income from side work, rentals, or other sources
For business owners, this includes:
- Profit and loss statements
- Gross receipts from all sales channels
- Payroll reports
- 1099-K forms from payment processors
- Any cash income not tied to a formal statement
Healthcare workers often have multiple income sources, such as hospital employment, locum tenens work, or consulting. Each of these needs to be accounted for.
Why this matters: Missing income can create compliance issues, while incomplete records make it harder to plan for estimated taxes or future cash flow. Providing a full picture helps your CPA file accurately and advise you more effectively.
4. Organized Expense and Deduction Records
Deductions are where good organization really pays off. Receipts, summaries, and logs give your CPA the confidence to claim what you are entitled to.
Helpful records include:
- Business expense summaries
- Receipts for supplies, equipment, meals, and travel
- Mileage logs if you use a vehicle for work
- Mortgage interest and property tax statements
- Charitable contribution receipts
- Health insurance and medical expense records, when applicable
For restaurants, HOAs, and other small businesses on the Cape, this may also include seasonal labor costs, maintenance and repair expenses, and utilities that fluctuate throughout the year.
Why this matters: Deductions must be supported by documentation. When records are incomplete or scattered, deductions may be missed or reduced. Organized records also save time, which often means lower preparation costs and fewer follow-up questions.
5. Estimated Payments, Payroll, and Timing Questions
Many taxpayers are surprised by balances due simply because estimated payments were off or missed altogether.
Your CPA needs to know:
- How much you paid in estimated taxes and when
- Whether payroll taxes were filed and paid on time
- If any large purchases or sales occurred during the year
- Whether you expect major changes in income going forward
For business owners, this includes details on owner compensation, distributions, and bonuses. For individuals, this may include retirement contributions, student loan payments, or healthcare coverage changes.
Why this matters: Estimated payments and payroll filings directly affect what you owe or are refunded. Timing also matters for deductions and depreciation. Talking through these items before filing can prevent avoidable penalties and help you plan better for the year ahead.
Get In Touch With A Cape Cod CPA Before Tax Season Starts
Tax season does not have to feel rushed or stressful. Taking a little time to gather the right information and share it with your CPA early can make a noticeable difference in the outcome.
At Steven M. Ellard, CPA, we work with individuals and businesses across Cape Cod, from busy restaurants and HOAs to healthcare workers and year-round service providers. Our goal is to help you stay compliant and make informed decisions based on accurate financial information.
If you are unsure whether you have everything you need or want help getting organized before tax season is in full swing, now is the right time to reach out. A short conversation today can save you time and stress later.
Contact our office to schedule a tax planning or preparation appointment and start the season on a solid footing.