Year-End Small Business Tax Checklist: PTIN Tips from Allen Monadi
As the calendar year winds down, small business owners across the United States face the same practical question: are my books, payroll forms, and estimated tax payments ready? I'm Allen Monadi, founder of USLaw Group LLC. I hold an IRS Preparer Tax Identification Number (PTIN), and in this guide I share a year-end tax preparation checklist focused on records, 1099 and W-2 timing, estimated taxes, and tips for paid preparers who use a PTIN.
Why a Year-End Checklist Matters
Year-end is when missing receipts, delayed contractor forms, and unfiled estimated payments become expensive. A simple checklist reduces stress in January and February, helps you avoid penalties for late information returns, and gives your bookkeeper or tax preparer cleaner data to work with.
1. Pull Together Your Core Records
Bank and card statements: Download December statements early and reconcile every account used for the business.
Income reports: Export sales from your POS, invoicing, or marketplace dashboards (Stripe, Square, Amazon, Etsy, and similar).
Expense receipts: Match receipts to categories: supplies, ads, software, travel, rent, utilities, professional fees, and equipment.
Asset list: Note vehicles, computers, tools, and machinery bought or sold during the year, with dates and amounts.
Prior-year return and organizer: Keep last year's return and any IRS or state notices handy for comparison.
Separate personal and business spending. If you used one account for both, mark personal items clearly so they are not deducted as business expenses.
2. 1099 and W-2 Timing (Information Returns)
Information returns report payments to others. Deadlines move slightly by year, so always confirm the current IRS and state calendar, but the rhythm is usually the same:
W-2 for employees: Employers generally must furnish Form W-2 to employees by January 31 and file with the Social Security Administration by the due date on the IRS calendar.
1099-NEC for nonemployee compensation: If you paid $600 or more to an unincorporated contractor or freelancer for services, you typically file Form 1099-NEC and furnish a copy to the recipient by the January deadline.
1099-MISC and other 1099s: Rent, royalties, prizes, and certain other payments may use Form 1099-MISC or other series forms. Review each payment type separately.
1099-K: Payment apps and marketplaces issue Form 1099-K to many sellers. Compare any 1099-K you receive to your own sales records.
State copies: Some states require electronic filing or state copies of information returns. Check your state's department of revenue.
Collect W-9s now. Before year-end, ask every contractor for a signed Form W-9 (name, address, TIN, entity type). Do not wait until January.
Verify TINs. Use the IRS TIN Matching program when available so you catch name/TIN mismatches early.
Decide who gets a 1099. Corporations are often exempt from 1099-NEC for services, but attorneys and some medical payments have special rules. When unsure, ask a licensed tax professional.
Use software or a service. E-file 1099s through IRS-authorized software or a filing service to reduce paper errors.
3. Estimated Taxes and Withholding
Federal estimates (Form 1040-ES): Many self-employed owners pay quarterly estimated taxes. Compare year-to-date profit to last year's safe-harbor rules so your Q4 payment (often due in January) is enough.
State estimates: Most states with an income tax also require estimates. Deadlines may differ from federal.
Payroll withholding: If you have employees or take a salary from an S corporation, confirm that federal and state withholding and unemployment deposits are current.
Self-employment tax: Social Security and Medicare on net self-employment income are often the largest surprise for new freelancers. Budget for them in your estimates.
4. PTIN Tips for Paid Tax Preparers
Anyone who is paid to prepare, or assist in preparing, all or substantially all of a federal tax return or claim for refund generally must have a valid IRS PTIN and include it on returns they prepare. I hold an IRS PTIN. Here is practical admin guidance for preparers and for business owners who hire one:
Renew your PTIN on time. PTINs must be renewed annually through the IRS PTIN system. Set a calendar reminder before the renewal window closes.
Use the PTIN only as required. Enter your PTIN on returns you prepare for compensation. Do not share login credentials for the PTIN account.
Keep engagement letters. Document what you will prepare (federal only, which states, bookkeeping vs. return prep) and what the client must provide.
Organizers and checklists: Send clients a document request list by mid-December: W-2s, 1099s, K-1s, mortgage interest, charitable letters, and business P&L.
Know your credentials. A PTIN authorizes you to prepare returns for compensation. It is not the same as Enrolled Agent status, an EFIN for e-filing as an Authorized IRS e-file Provider, AFSP, or a state tax preparer registration. Do not advertise credentials you do not hold.
State rules vary. Some states regulate commercial tax preparers separately from the IRS. Confirm requirements in every state where you prepare returns.
USLaw Group LLC and I do not claim Maryland Individual Tax Preparer registration, AFSP, EFIN, or Enrolled Agent status. Clients who need those specific credentials should work with a professional who holds them.
5. Quick Wins Before December 31
Pay deductible expenses you already planned (supplies, repairs, professional fees) if cash flow allows.
Contribute to a SEP-IRA, Solo 401(k), or similar plan if eligible — contribution deadlines can extend past December 31 for some plans; confirm current IRS dates.
Review mileage logs and home-office square footage while the year is fresh.
Write off clearly uncollectible invoices and document why.
Inventory count for product businesses: physical count supports cost of goods sold.
Charitable contributions: get written acknowledgments for larger gifts.
6. January Action Plan
Week 1: finish bank reconciliations and categorize December transactions.
Week 2: generate draft W-2 and 1099 lists; mail or e-deliver recipient copies by the IRS deadline.
Week 3: file information returns and confirm acceptance.
Week 4: send your complete organizer packet to your tax preparer or complete your own draft return worksheet.
Common Mistakes I See
Waiting until February to request W-9s from contractors.
Mixing personal Amazon or Costco purchases into business expenses without documentation.
Ignoring a 1099-K that does not match your books.
Skipping Q4 estimated payments and facing underpayment penalties.
Assuming a PTIN alone allows e-filing without an EFIN and approved software.
Claiming state preparer licenses or EA status without holding them.
Need Help Getting Organized Before Tax Season?
At USLaw Group LLC, Allen Monadi and our team help small businesses nationwide organize year-end records, contractor payment lists, and tax-season document packages, and we advise paid preparers on practical PTIN admin habits. Message us on WhatsApp 0015712076845, call 5712452001, email info@uslawgroupllc.com, or visit uslawgroupllc.com.
Disclaimer: USLaw Group LLC is a business consulting company, not a law firm, and does not provide legal advice. This article is general educational information only and is not tax, legal, or accounting advice. Tax rules and deadlines change; always confirm current IRS and state requirements, and consult a licensed attorney, CPA, Enrolled Agent, or other qualified tax professional for your situation.
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