The trouble with waiting until tax season

One of the challenges with tax planning is that we often end up talking about it when there’s very little time left to do anything about the year we’re reviewing.

By the time a client brings in their tax documents and starts asking questions about what they owe, December 31 has usually come and gone. We can explain what happened, look for mistakes, and start thinking about next year, but many of the decisions that could have made a difference are already behind us.

There are still a few months left in the year, and that means there’s time to review what’s happened so far and make adjustments where they make sense.

For some clients, that might mean evaluating whether a Roth conversion fits their long-term plan. For others, it could mean reviewing withholding and estimated payments, looking at charitable giving strategies, or making sure required minimum distributions are being handled appropriately.

The right conversation will depend on the client. There’s no single strategy that belongs in every plan, and making a decision just to reduce this year’s tax bill can create other problems down the road.

The important thing is to ask the questions while there’s still time to act.

I also think this is a good opportunity to set expectations with clients. If you wait until tax season to ask for their tax return, you’re already looking backward. If you have a process for reviewing returns, discussing opportunities, and checking in throughout the year, you can use what you learned last tax season to make better decisions before this one ends.

And don’t forget that tax planning isn’t just about finding a clever strategy. Sometimes it means confirming that a client is on track, coordinating with their CPA, or helping them understand the tax consequences of a decision they’re already considering. Those conversations matter, too.

My suggestion is to look at your calendar for the next few weeks. Which clients need a year-end tax planning conversation? Are there Roth conversion opportunities to evaluate, charitable gifts to coordinate, or estimated payments that need another look?

You don’t have to solve everything at once. Start with the clients who have the most pressing decisions, make a plan for the conversations that need to happen, and build from there.

If you want to strengthen your process for reviewing client tax returns, our 37-Point Masterclass on Reviewing Tax Returns walks through the return line by line and offers practical guidance on what to look for. You can find more information about it here.

Happy Tax Planning,
Steven Jarvis, CPA