Don't Guess Your Tax Year
One of the four essential steps in your first 30 days is choosing your tax year. This choice is an official decision that requires consistency. A common pitfall is the belief that applying for an EIN or paying estimated taxes locks you into a tax year. This is a subtle nuance that can lead to future complexity.
Sound financial planning requires clear, accurate decisions from the start. You officially 'adopt' a tax year by filing your first income tax return using that year. Simply applying for an EIN or paying estimated taxes does not lock you into a tax year. This both/and solution provides the nuance you need to avoid mistakes. Once you adopt a tax year, changing it generally requires IRS approval, so making the Sound choice now is crucial.
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DISCLAIMER: This content is for educational purposes only and should not be considered personalized financial advice. Always consult with a qualified financial professional before making financial decisions.