Brian Pavek, CPA

Brian Pavek, CPA Financial and tax assistance for personal and small businesses. To help make those decisions, Smith Schaefer & Associates, Ltd.

Intelligent decisions are vital to remaining effective and competitive in today's changing world. offers a diverse range of highly integrated individual, business, and financial services. These services are designed so that our clients can attain their personal and organizational objectives.

01/03/2022

TAX SEASON 2022 - OPENING DAY

Opening day for tax season doesn't quite muster the same excitement as it does for sports or hunting/fishing. That's because you are not a CPA. We have been cooped up like tracking dogs before the big fox hunt. 'Release the hounds'... OK, not a very flattering analogy. That is why I am a CPA and not creating movies for Hallmark. As with any season, it can seem like a long, drawn out affair.

You think you are due a refund? By all means let's get that return filed as soon as possible. E-filing is usually not open by the IRS until the last week of January. If you own a business, your payroll and 1099s are due by January 31.

The next deadlines are the business flow through returns (partnerships and S Corps) which are due March 15. I am not a gambling man, but I would bet that the individual deadline will probably not be pushed back from its April 15 deadline. If you can not file by those dates, your business and personal returns can be extended six months each.

So slip on the jersey of your favorite CPA and let's 'Play ball!'.

Brian Pavek, CPA

INDIVIDUAL TAX EXTENDED DUE DATEIf you properly extended your individual return last May, your return is due two weeks f...
10/01/2021

INDIVIDUAL TAX EXTENDED DUE DATE

If you properly extended your individual return last May, your return is due two weeks from today, October 15th. If you still have not filed your 2020 individual taxes, try and get your tax information to your smiling tax preparer as soon as possible. If you do not file by the extended deadline and owe, there are major late filing penalties in addition to the late paying penalties and interest. If you do not owe and instead are due a refund, there are not any penalties for filing after the due date. However, try not to rely on that as a safety net.

09/01/2021

Personal Quarterly Estimated Taxes

Your third quarter personal quarterly estimates are due two weeks from today. I have found that people are under the misconception that you need to pay what you may owe up to date during the year. This is not always the case. You pay the minimum required to avoid underpayment penalties.

How do you avoid underpayment penalties? By either paying in 100% of the prior year tax liability or 90% of the current year liability. You could have a situation where your prior income was low or your current year income is much higher. Your estimates would be less if you paid 100% of the prior year's liability. Understand you will still owe at tax time, but a dollar today is worth more than a dollar tomorrow.

Brian Pavek, CPA

09/01/2021

Sorry, I have been absent from Facebook since Dec 2019. Anything new going on in the world?

BP

12/03/2019

Year End Tax Planning

Do you realize that it is December already? Crazy, huh? Now is the time of year to review your tax situation with your trusted CPA to determine whether you need to do anything before year end.

If you own a business and want to drive income down, look to accelerate any purchases that you will make in 2020 into 2019. If you need to make large equipment purchases, the equipment must be in place AND ready for use by 12/31. Depreciation is one of the variables we have after the year has ended. If you own a corporation (S or C) and are profitable, make sure your wage for the year is reasonable. If you have not been taking a reasonable wage to date, this can be adjusted with your 4Q payroll.

If you are an individual, you can max contributions to your retirement plans. If you are not covered by a plan through your employer, you have up until 4/15 to contribute to an IRA or SEP. If you have an investment portfolio and currently have a gain for the year, look at selling some losing positions to reduce the gain. If you think the stock is going to turn around (it isn't), you have to wait more than 30 days to back it back due to the wash sales rule.

In any case, if you have any questions about your 2019 taxes, contact your trusted CPA before year end.

07/24/2019

SMALL BUSINESS PAYROLL

The second quarter payroll reports are due one week from today (July 31). In my time, I have seen plenty of new clients come to me that were doing their payroll incorrectly. If you are:

-sole proprietor - you do not pay yourself a wage. You are already paying tax on the net income on your Sched C. You are literally taking the money out of one pocket and putting it back in the same pocket.

-partner in a partnership - you do not pay yourself a wage. Partners in partnerships "pay" themselves via Guaranteed Payments. To the casual observer it will seem like the same thing, but guaranteed payments are not included in wages, do not get issued a W-2, and report the gross guaranteed payment on a Sched E of their personal tax return.

-shareholders in corporations (C Corps and S Corps) - I have seen far too many shareholders in S Corps not take a proper wage. The IRS says that shareholders must pay themselves a "reasonable wage" but never say what that wage should be. I have guided many clients into paying a reasonable wage and staying in compliance with the IRS.

If you have questions about compensation or do not feel that your tax preparer is doing things correctly, please contact me to discuss.

Brian Pavek, CPA

Address

7500 Highway 55, Ste 350
Golden Valley, MN
55427

Opening Hours

Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

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