How to Prepare for Tax Season: A CPA's Month-by-Month Checklist

Every year, tax season catches many individuals and business owners by surprise — often leading to stress, last-minute scrambling, and missed deductions. But with proper planning and consistent organization, filing taxes can be a smooth and predictable process.

At Luna CPA, LLC, we help clients in Laredo, Texas stay ahead of deadlines and make the most of every available tax benefit. Here's a month-by-month CPA checklist to help you prepare for tax season efficiently and confidently.

January -- Get Organized Early
The new year is the perfect time to set the stage for success.

• Gather all W-2s, 1099s, and bank statements.
• Review your previous year's tax return for carryovers or pending deductions.
• Set up or update your bookkeeping system (QuickBooks, Xero, etc.).
• For businesses, ensure your payroll reports (Form 941 and W-2s) are filed by January 31.
  
  At this stage, many taxpayers benefit from consulting with a CPA in Laredo, TX to verify that their financial records match their IRS and Texas Comptroller obligations.
  
  February -- Reconcile and Review
  As tax forms arrive, ensure all information is accurate.
• Verify that all 1099s and W-2s reflect correct amounts.
• Match income and expense totals against your accounting software.
• Begin calculating potential deductions, such as charitable contributions or business expenses.
• Schedule your initial consultation with Luna CPA, LLC to plan your filing strategy.
  
  March -- Business Filing Season
  For partnerships (Form 1065) and S-corporations (Form 1120S), the filing deadline is March 15.
  If your business operates in Texas, you must also prepare for upcoming Texas Franchise Tax filings due in May.
  
  By March, business owners should:
• Review profit and loss statements and balance sheets.
• Confirm that all estimated tax payments are recorded.
• Finalize any last-minute adjustments with your CPA.
  
  April -- Individual Filing Season
  The standard deadline for individual returns (Form 1040) and C-corporations (Form 1120) is April 15.
  This is also the deadline for:
• Making IRA or HSA contributions for the prior year.
• Paying any remaining estimated tax from the previous year.
  
  If you're not ready to file, your CPA can request an extension until October 15. However, any unpaid tax balances are still due in April to avoid penalties or interest.
  
  May -- Texas Franchise Tax Reports
  For Texas businesses, May 15 is one of the most critical deadlines of the year.
  The Texas Comptroller requires every taxable entity to file a Franchise Tax Report and Public Information Report (PIR) — even if the business qualifies for a "No Tax Due" status.
  
  At Luna CPA, LLC, we ensure that Laredo businesses file timely, accurate reports to maintain active status with the Texas Secretary of State and avoid forfeiture.
  
  June -- Midyear Financial Review
  The midpoint of the year is a great time to review your financial health.
• Evaluate business performance and cash flow.
• Review your estimated tax payments for accuracy.
• Update payroll records and expense tracking.
• Consider tax-saving opportunities for the second half of the year.
  
  A midyear meeting with your CPA can uncover potential tax strategies before it's too late to implement them.
  
  September -- Prepare for Q3 Estimates
  Third-quarter estimated tax payments are due September 15 for individuals and businesses making quarterly payments.
  Missing these can lead to underpayment penalties, so use this period to ensure:
• Bookkeeping is current.
• Financial reports reflect accurate year-to-date results.
• Adjustments for depreciation, owner draws, or distributions are recorded.
  
  October -- Extension Deadline
  If you filed for an extension earlier in the year, October 15 is the final deadline for submitting your individual and corporate returns.
  Your CPA should review all supporting schedules and ensure that depreciation, credits, and deductions are properly claimed.
  
  November -- Year-End Planning
  As the year winds down, it's time to plan your tax strategy for next year.
• Review business purchases or equipment eligible for Section 179 depreciation.
• Consider timing bonuses, expenses, or charitable contributions before year-end.
• Review potential retirement contributions to reduce taxable income.
  
  December -- Wrap Up and Reset
  Finish the year strong:
• Reconcile all accounts and verify outstanding invoices.
• Review payroll and issue any year-end bonuses.
• Update your accounting software for the new year.
• Schedule your January CPA meeting early.
  
  Final Thoughts
  The best way to simplify tax season is to treat it as a year-round process, not a last-minute task. Staying organized month by month ensures accuracy, minimizes stress, and helps you claim every available deduction.
  
  At Luna CPA, LLC, we provide professional guidance, planning, and filing services to keep individuals and businesses in Laredo, TX financially confident and compliant all year long.
  
  Luna CPA, LLC
  Certified Public Accountants in Laredo, Texas — guiding you through every season of your financial journey.