My accounting firm just had yet another new client come in
who hadn’t done their business tax returns for four years.
That’s right, four years of tax returns.
And guess what? Two very,
very important things happened in this event.
One was this business owner would needed their tax returns filed
because they needed to buy a house.
That’s right, Mr.
Business owner, when you go out there and you try to buy a house
and any type of loan for that matter,
you’re gonna need to show a proof of income.
And as a self employed business owner,
your proof of income is your tax return.
The second,
and I would even say the more important thing that happened is
the first year, they didn’t file,
they owed about $3,000. And then years two,
three, and four,
all due back refunds. Oh,
my gosh. But how did that happen?
Because they had themselves on a W2 from their business,
and we were able to get their business for years two,
three, and four to report a loss.
That business loss then comes in,
reduces their W2 wages. Their W2 had tax withholdings on it.
So they’re gonna be due some money back.
So there’s a few lessons to be Learned here.
One, this is not the first type of person who’s came in like this
and had this, oh,
my gosh, I don’t know anything in taxes.
I mean, I’m due back refunds.
I thought I was gonna owe My life savings
for not filing for the past three
4 years. So don’t be afraid,
because you just might not end up owing it in tax at all,
or it might not be nearly as much as you think.
So don’t be scared. And then also
try not to wait to file your tax returns
until a lender asks you for them.
Just file them. It’ll make your life easier.