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Even after your 2024 federal return is submitted, a few nagging questions often remain. Below are quick answers to five of the most common questions we hear each spring.

1. When will my refund show up?

Use the IRS’s “Where’s My Refund?” tracker at IRS.gov. Have these three details ready:

• Social Security number,
• Filing status, and
• Exact refund amount.

Enter them, and the tool will tell you whether your refund is received, approved or on the way.

2. Which tax records can I toss?

At a minimum, keep tax records related to your return for as long as the IRS can audit your return or assess additional taxes. In general, the statute of limitations is three years after you file your return.

So you can generally get rid of most records related to tax returns for 2021 and earlier years. (If you filed an extension for your 2021 return, hold on to your records until at least three years from when you filed the extended return.)

However, the statute of limitations extends to six years for taxpayers who understate their gross income by more than 25%.

You should hang on to certain tax-related records longer. For example, keep the actual tax returns indefinitely, so you can prove to the IRS that you filed legitimate returns. (There’s no statute of limitations for an audit if you didn’t file a return or you filed a fraudulent one.)

When it comes to retirement accounts, keep records associated with them until you’ve depleted the account and reported the last withdrawal on your tax return, plus three (or six) years. And retain records related to real estate or investments for as long as you own the asset, plus at least three years after you sell it and report the sale on your tax return. (You can keep these records for six years to be on the safe side.)

3. I missed a credit or deduction. Can I still get a refund?

Yes. You can generally file Form 1040-X (amended return) within:

• Three years of the original filing date, or
• Two years of paying the tax — whichever is later.

In a few instances, you have more time. For instance, you have up to seven years from the due date of the return to claim a bad debt deduction.

4. What if the IRS contacts me about the tax return?

It’s possible the IRS could have a problem with your return. If so, the tax agency will only contact you by mail, not phone, email, or text. Be cautious about scams!

If the IRS needs additional information or adjusts your return, it will send a letter explaining the issue. Contact us about how to proceed if we prepared your tax return.

5. What if I move after filing?

You can notify the IRS of your new address by filling out Form 8822. That way, you won’t miss important correspondence.

Year-round support

Questions about tax returns don’t stop after April 15 — and neither do we. Reach out anytime for guidance.

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In recent years, interest rates have increased and credit has tightened. Under these conditions, which are expected to persist in the coming months, securing a commercial loan can be challenging for businesses of all sizes. Whether you want to expand, stabilize your cash flow, or simply build a financial cushion, being loan-ready is more critical — and more complicated — than it’s been in the past.

Here are some steps to help increase the odds that a bank will approve your company’s loan application.

Provide GAAP financial statements.

Banks aren’t just looking for strong numbers in today’s cautious lending environment. They also want transparency and consistency. That’s why financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP) are essential.

GAAP financials give lenders a clear, apples-to-apples view of your business’s performance. GAAP requires accrual-basis accounting. On the income statement, this means sales are recorded when they’re earned, and expenses are reported when they’re incurred — regardless of when cash actually changes hands. A GAAP balance sheet may include accounts receivable, accounts payable, prepaid assets, and accrued expenses. These accounts paint a complete, reliable picture of your business’s financial position.

If your financials aren’t already prepared in accordance with GAAP, it’s worth investing the time (and potentially enlisting outside help) to get them there before you apply for financing. GAAP financials could make all the difference.

Understand how your financial results stack up.

Lenders use your financial statements to calculate key ratios and compare your business against industry benchmarks and its historical performance. Some ratios underwriters may scrutinize include:

• Profit margin (net income divided by sales),
• Receivables turnover (annual sales divided by average receivables balance),
• Inventory turnover (annual cost of goods sold divided by average inventory balance),
• Payables turnover (annual cost of goods sold divided by average payables balance),
• Current ratio (current assets divided by current liabilities),
• Debt-to-equity ratio (total debt divided by total owners’ equity), and
• Times interest earned ratio (earnings before interest expense and taxes divided by interest expense).

Your business will stand out if its financial performance reflects solid asset management, profitability, and growth prospects. If there are red flags — such as low profits, aging receivables, or high debt levels — have a detailed explanation and an improvement plan.

Prepare for comprehensive due diligence procedures.

Today’s lenders want a complete picture of your business operations, leadership, and future strategy. Be prepared for in-depth due diligence, including:

• Facility tours to assess your operations firsthand,
• Interviews with your leadership team,
• Reviews of marketing materials, pricing strategies, and key customer or supplier contracts, and
• Discussions about any discrepancies between your financial statements and tax returns.

Underwriters don’t just like to see that you’re currently profitable; they also want assurance that you’re building a resilient, well-run business that can repay the loans.

Additionally, you’ll need to explain how the loan funds will be used. Having a clear, realistic plan — whether it’s to expand your operations, invest in new equipment, increase headcount, or manage seasonal cash flow — can significantly boost your credibility. Vague or overly ambitious plans can sink your application, even if your financials look strong.

Let’s get you loan-ready

Securing a loan requires more than filling out a few forms. You need a clear financial story, reliable financial records, and a forward-looking business plan. We can help you apply for a business loan to position your business for success, even in tough times. Contact us to get the ball rolling.