This story appears in the March 2025 issue of Utah Business. Subscribe.
Forms 1120, 1040s, W-9, 5471, oh my! If you’ve nearly succumbed to the tax season panic, keep reading — tax experts across the state have offered their best tips to make filing correct forms a breeze. Whether you’re a small business owner, managing a global entity or just filing your family’s return, Utah’s experts have the answers.
David Jensen
Tax Partner | KPMG | Salt Lake City
“The ‘Tax Trifecta’ will dominate the 2025 business tax landscape as organizations navigate unprecedented change. This convergence of major tax events includes expiring $4 trillion of Tax Cuts and Jobs Act provisions, ongoing global minimum tax implementation, and sweeping regulatory changes from laws like the Inflation Reduction Act and potential tariffs under the new administration. This complex environment is reshaping how organizations approach tax management. A recent KPMG C-suite survey revealed that 87 percent of leaders are now considering managed services solutions to help their tax departments harness data and technology more strategically. The tax function is rapidly evolving from strictly a compliance-focused operation to a much more holistic, critical, strategic driver of business value. Organizations that adapt to this new reality through enhanced technological and operational capabilities will be better positioned to turn these challenges into opportunities.”
Brad Poll
Partner | Eide Bailly LLC | Layton
“Even though 2024 has come and gone, there are still opportunities to receive deductions if payments are made in 2025. Most are required to be made before 4/15/2025. Some deductions to consider are contributions to an IRA and, if you are self-employed, to a retirement account.”
Jenny Groberg
Founder | BookSmarts Accounting & Bookkeeping | Kaysville
“In filing business taxes, business owners should avoid showing little to no income on their return or losses for three out of the five most recent years. This is a flag that a business might be a way to write off expenses rather than function [with a genuine business purpose]. Additionally, business owners need to be careful not to show excessive expenses in particular line items. The IRS will compare your business return to businesses in similar industries, and if you’re reporting extreme expenses, that can trigger an audit. … Be careful of large cash transactions. Avoid them at all costs. … The home office deduction is often missed. If you do any work from home, you may qualify for this deduction. This deduction is determined by the percentage of space in your home used solely for business. These home deductions include mortgage interest, property taxes, home insurance, wifi, utilities, repairs, depreciation and HOA fees. For example, if you use 15 percent of your home for business, and your home expenses are $150,000 for the year, you could deduct $22,500.
The wheels of the IRS and state tax commissions turn slowly, but they turn. I have seen many small businesses get behind on tax payments, and they think it will go away unnoticed or disappear. The penalties and interest are so significant that once they are notified of the discrepancy, it is hard for most businesses to pay back what is owed, plus the additional fines. Do everything you can to file your taxes on time by focusing on your accounting and bookkeeping at year-end to avoid unnecessary interest expenses.”
Brett M. Jensen
Tax Partner | Haynie & Company | Salt Lake City
“Consider purchasing transferable energy credits to offset the passive income generated from your investments, such as rental properties or limited partnerships. This strategy can help reduce your overall tax liability: By strategically acquiring these credits at a discounted rate, you can achieve additional tax savings while supporting renewable energy initiatives and lowering the effective tax rate on your passive earnings.”
Garth Simpson
Manager | Squire & Co. | Orem
“One often overlooked deduction [for individuals] is for student loan interest. Even if you don’t itemize your deductions, you may still qualify to deduct up to $2,500 in student loan interest, depending on your income level. For businesses, a common mistake is neglecting to track and deduct business-related vehicle expenses. Keeping detailed records is key, whether you use the standard mileage rate or actual expenses. Additionally, businesses should explore the R&D tax credit, which applies to more industries than you might think, including software development and manufacturing.
The Inflation Reduction Act introduced several clean energy incentives. Individuals and businesses investing in energy-efficient property improvements or electric vehicles should ensure they’re taking full advantage of these credits.”