Filing is done. The extension deadline has passed, the forms are in, and most business owners are doing exactly what they shouldn’t: nothing.
The window between filing and the next major deadline — Q3 estimated payments on September 15 — is actually one of the most valuable planning periods of the year. Here’s how we use it with our clients.
1. Pull your effective tax rate. Compare it to last year.
Your effective rate is your total tax liability divided by your taxable income. If it went up, you need to know why. Common culprits: a one-time income event you didn’t plan around, a change in entity structure, or estimated payments that weren’t calibrated correctly.
If it went down, figure out what drove the reduction — and whether it’s repeatable.
2. Verify your estimated payment schedule for the rest of 2026.
Q2 estimates were due June 15. Q3 is September 15. Q4 is January 15, 2027.
Most business owners either overpay (good for the IRS, bad for cash flow) or underpay and get surprised in April. Neither is a strategy.
If your income this year looks materially different from last year, your estimated payments should be recalibrated now, not in January.
3. Check for IRS correspondence you may have missed.
This sounds obvious. It isn’t. Notices go to the address on file when you filed — which may not be your current address. If you’ve moved, or if your bookkeeper handles your mail, there’s a real chance something arrived and wasn’t flagged.
Log in to your IRS account at irs.gov/account and look for any open notices or balance-due items.
4. Review your entity structure before mid-year.
If you’re a sole proprietor or single-member LLC still paying self-employment tax on your full net income — and your net profit is consistently above $60K — you may be overpaying by thousands annually.
S-Corp elections have a filing deadline that requires action before the current tax year is over. July and August are still viable windows for next-year planning. By October, your options narrow considerably.
5. Document everything you should have documented but didn’t.
Business mileage logs. Home office square footage. Meals and entertainment with the purpose noted. Equipment purchased. Receipts for deductions you claimed.
The IRS has three years to audit a filed return — six if they suspect substantial underreporting. Good documentation isn’t busywork. It’s the thing that turns an audit inquiry into a non-event.
The firms that pay the least in taxes over time aren’t the ones with the cleverest strategies. They’re the ones that do the maintenance work in the quiet months.
If any of the five steps above surfaced something you need to address, the next move is a strategy call. We’ll give you a direct read on what it means and what to do about it.
