Annual Business Tax Planning Timeline

Review prior year results

Compare actual income and expenses to expectations. Identify what changed and why.

Confirm estimated tax payment schedule

Set up or adjust quarterly payment amounts based on current-year projections.

Review entity structure

Confirm that your current entity type still makes sense given your income level and plans.

Gather prior year tax documents

W-2s, 1099s, K-1s, and other income documents typically arrive in January and February.

File or extend prior year return

The April deadline applies to most individual and business returns. Extensions are available but do not extend the time to pay.

Review Q1 income and expenses

Compare actual Q1 results to your projections. Adjust estimated payments if needed.

Make Q1 estimated tax payment

Due in April for most taxpayers. Calculate based on current-year income, not just last year.

Confirm bookkeeping is current

Books should be reconciled through Q1 before the payment deadline.

Review year-to-date performance

By midyear, you have enough data to project the full year with reasonable accuracy.

Identify major changes

New revenue streams, significant expenses, hiring, or business changes that affect taxes.

Make Q2 and Q3 estimated payments

Q2 is due in June; Q3 is due in September. Recalculate before each payment.

Consider timing of major purchases

Large equipment or asset purchases may have tax implications. Timing matters.

Project full-year tax liability

With Q3 results in hand, you can project the full year with high accuracy.

Identify year-end planning opportunities

Accelerating deductions, deferring income, retirement contributions, and other timing decisions.

Review estimated payments for accuracy

Ensure total payments will cover the liability or meet safe harbor requirements.

Confirm books are current through Q3

Year-end planning requires accurate, current financial data.

Make Q4 estimated payment

Due in January of the following year. Final opportunity to adjust before year-end.

Finalize and close the books

Books should be fully reconciled and closed before tax preparation begins.

Gather all tax documents

Income documents, expense records, asset purchase records, and prior year return.

Review with your CPA

Discuss the year, confirm all deductions are supported, and review the return before filing.

File or extend

File by the deadline or request an extension. Pay any balance due by the original deadline.