Post-Tax Season Checklist for Accountants and Business Owners

Tax season might be over, but the work is not over just yet. There are still a few steps you must take to make sure there are no penalties and the next tax season is compliant and goes smoothly without a hitch. 

Since tax compliance is an ongoing process and not a one-time event, a post-tax season checklist becomes essential for compliance. Here is our post-tax season checklist for businesses and accountants.  

 

Checklist 1: Correct any mistakes in the forms

Even after submitting tax forms, you still have the option to correct any mistakes to avoid penalties and notices. For 1099 form corrections, there are two types of errors to be corrected: Type 1 and Type 2, each requiring different procedures. 

Type 1 errors include the wrong payment amount, an incorrect code/checkbox, a wrong name or address, or submitting a form when it wasn’t necessary. To fix these errors, you need to prepare a new 1099 form and mark the “Corrected” box at the top. 

Type 2 errors include entering incorrect TINs or information or preparing the wrong form. Fixing these errors requires using two new 1099 forms: i) a voided 1099 form (marking it as void) to cancel the incorrect report and ii) a new, corrected 1099 form with the right recipient details and payment information. 

For W-2s, use Form W-2C (Corrected Wage and Tax Statement) to correct errors on previously filed W-2s, such as incorrect wages, Social Security numbers, or withholding amounts. 

 

Checklist 2: Prepare for IRS Tax Notices 

The IRS issues a CP2100 or CP2100A notice, also known as a B-Notice notices, if they find a mismatch between the name/TIN and their database.  

After receiving a B-Notice, you are required to review it and then check it against your records to confirm if there are any mistakes. You’ll also be legally required to notify the recipients and send a B-Notice with a blank Form W-9 to the taxpayer within 15 business days.  

If this is the second B-Notice received within three calendar years, there is no requirement for a W-9 to be sent. Instead, the taxpayer must contact the IRS for a TIN validation letter. If the taxpayer does not respond or provide a correct TIN, a backup withholding will be implemented until there is a valid TIN. 

 

Checklist 3: Review Estimated Tax Payments 

After the eFiling, reviewing estimated tax payments (quarterly prepayments of your expected tax liability) is another important step. It helps avoid penalties, and you can manage cash flow better.

Reviewing your 2024 tax payments can help you accurately estimate your 2025 tax liability and avoid underpayment or overpayment. It’s also important to review your income and spending if the income changes during the year.  

Make sure to keep a check on any new contracts, big purchases, or sales that might affect your taxes. If you’re part of a partnership or S-corp, consider how your share of the business income affects your estimates.

 

Checklist 4: Keep Updated with Regulatory Changes 

Always keep yourself updated and stay informed about any new regulatory changes. The IRS will announce any changes to its tax filing procedure, such as form filing guidelines or threshold changes, via website and social media.

A notable change you need to keep an eye on for the next tax season is the adjustment in reporting thresholds for Form 1099-K. This form reports payments made through third-party platforms like PayPal, Venmo, and other gig economy platforms. Previously, it was only applied to payments worth $20,000+. But from the next tax filing season, the threshold will be lowered to $600+. This change would impact freelancers, online marketplaces, and gig workers.

 

Checklist 5: Conduct a Post-tax Season Review

The post-tax season is the best time to analyze what worked well and what didn’t when it comes to eFiling.

A review can definitely help your team identify any issues from the previous tax season, such as delays in form collection or missed deadlines. This allows your team to implement an actionable plan early and reduce errors in the next season.

Review the accounting systems and software tools used throughout the 1099 preparation and filing process. Check if there are opportunities to introduce automation, such as automated TIN matching or real-time data validation to improve efficiency.

 

Checklist 6: Plan for the Next Tax Season 

Tax prep should begin right after the tax season ends. To avoid the last-minute rush, start by creating a plan for the upcoming tax season. Make sure you have a clear timeline with all the important tax dates, such as filing deadlines and estimated payment due dates.

Evaluate potential tax-saving strategies, eligible tax credits, and tax-advantaged accounts such as the Qualified Business Income (QBI) deduction and R&D credit. You can also set up or contribute to tax-advantaged accounts. These strategies are more effective when planned well in advance.

You should also assess whether your current systems and workflows can handle the next tax season. If you experience delays or data errors, consider this your sign to upgrade your accounting software, integrate your ERP system, or invest in a tax platform like Tax1099.

 

 

Why Choose Tax1099 for Your eFiling? 

An award-winning IRS-authorized eFiling platform, Tax1099 makes eFiling easier, simpler, and more compliant.

• AI-powered Tax Support
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• Scheduled eFiling
  Prepare and schedule your filings in advance. Make updates and set custom submission dates.

• Data Import & Integration 
  Upload and import data from Excel/CSV files or integrate with existing accounting systems.
• Multi-User Access
  Enable secure, role-based access for multiple users. Assign responsibilities, manage tasks, and control permissions.

 

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