RTS #018 IRS due dates (yes, there are more than one)

It’s easy to get stuck on April 15th as the most important tax date out there. I would argue that it’s actually one of the least important dates and creates an enormous distraction from real tax planning. We win against the IRS (a.k.a only pay what we absolutely have to and stop leaving a tip) when we think long-term and make proactive decisions. In order to do that we need to understand when key decisions need to be made and be out in front of those deadlines.

That doesn’t mean that you need to go out and push every one of your clients to max fund every account before December 31st or the filing deadline; it simply means you need a plan that gets addressed more often than “tax time” each year. For clients who aren’t yet contributing to tax-advantaged accounts, that might mean getting started before the end of 2023 so they are on track for all of 2024. It could even just mean having the conversation during your fall client meetings and setting the expectation for next year.

Whatever it looks like in your practice, we have seen the most success when taxpayers take consistent action over time. The commitment and follow through for that consistent action comes from understanding the value of those actions, which is not going to be effectively communicated right up against a deadline (also a friendly reminder that it likely is NOT being communicated by their tax preparer, just assume that if you aren’t addressing the topic its not being addressed).

What can you do about it?

This is a great topic for a client newsletter or value-add communication. You don’t need to send the full chart; pick things that are most relevant to your client base and provide education and a way to take action for clients who are interested. The best time to bring up a tax savings opportunity is when there is still time to do something about it.

Happy Tax Planning!