Procrastination is just a part of life, but when it comes to taxes, a certain amount of dread wells up in even the most experienced business owners or local residents that often leaves them almost sure to engage in proÂcrastination on those tax forms before the deadline on April 15. Thankfully, there is High Prairie Tax and Accounting in WestÂcliffe to help individuals and businesses alike not only get those taxes filed but also set a solid foundation for tax planning throughout the year.
The Tribune had a conversation with Ray Reeves, the owner of High Prairie Tax and Accounting, last month to learn how he came to start his own business and the changes in the tax code that will impact every citizenâs tax bill in 2025.
Wet Mountain Tribune (WMT): So, quickly, give our readers a recap of your experience in accounting and taxes and how you got to the point where you wanted to start your own business.
Ray Reeves (RR): I always had a finance background and a finance degree. I was very comfortable with accounting, and I did a lot of the accounting work for self-emÂployed businesses, which at first included mostly myself and the RV business I owned and operated in the Denver area. SeasonalÂity is part of the RV business, and I needed something to do during winter, so a tax busiÂness really fit in with my schedule. I decided to become an Enrolled IRS Agent and took the exam in 2005. Once I passed, I hung out my shingle to be self-employed, and I have remained self-employed as a tax guy since then. We moved to Westcliffe in 2023, so I hung out my shingle here in 2024.
WMT: What can people expect from this tax season?
RR: Well, by far, the biggest challenge that weâve got in this country coming down the pike in 2025 is there are going to be lots and lots of changes to the tax code, and nobody knows what theyâre going to be at this point. The first challenge is the current tax law we are under, which is the Jobs Act, which is due to expire at the end of 2025 (currently under debate in the House of RepÂresentatives). If it does, we will revert to the tax code that was in effect in 2018, which would be an instant tax increase for everyÂbody in America. So itâs hard to do a lot of long-term tax planning right now until we know what the rules are going to be.
WMT: Having somebody like you to talk to and keep an eye out for changes is an immense value you offer clients.
RR: I think from my standpoint, I can most be of service to a person who owns a business. As you know, business taxes are complicated, plus we can do some tax planning at the same time. If your tax return is a pretty simple situÂation with a W-2 and a mortgage, frankly, you donât need a guy like me. But when you get the more complicated transactions like rental properties and any kind of a business, thatâs where I think tax planning can help, and I can be of value to somebody here.
WMT: Thatâs a good point to make a segue here. In this region, a majority of the workers are actually self-employed business owners, and it is often hard, if not impossible, to really do the business tax planning on your own.
RR: Working with small businesses is how I got started in this profession. It is critical to have accurate books and records. Further, depending on what type of entity it is, if itâs an S-corporation, C-corporation, or a partnership, you are held to a very high standard for accounting. You need to have an accurate balance sheet. Many clients that I first talked to who do their bookkeeping really donât have a good handle on the balÂance sheet, which makes all the difference when filing taxes. So that is why one of the services I offer is if somebody wants to do their own bookkeeping but needs a little bit of hand-holding to get the balance sheet corÂrect. I offer quarterly reviews, bank reconÂciliation, credit card reconciliation, payroll tax reports, or just reviewing the books to make sure that theyâre being done correctly throughout the year so that when youâre ready to do a tax return, everything is ready.
WMT: You probably advise on how to make sure that a small businessâs chart of accounts is correct. For example, I get easily overwhelmed with depreciation, even though something like that can have subÂstantial tax rewards if done correctly.
RR: Well, on that note, and as a general and broad statement, in my experience, most taxpayers really donât have a good handle on how to depreciate new assets and capital gains and sales of existing assets. They tend to get it wrong depending on the nature of the business. For example, if there is someÂbody who has a lot of assets, thatâs where a guy like me can really add value and make sure that the accounting in the transactions is handled correctly.
WMT: What are some of the deadlines for people to be aware of either as individuÂals or businesses?
RR: If you have an S-corporation or partnership, the tax returns are due on March 15. Personal returns are due on April 15, and my cutoff to get a tax return done by that time is March 15. Otherwise, we will file an extension.
WMT: What have I left out of the conÂversation that our readers would be interÂested in?
RR: It is just a difficult time to make sigÂnificant decisions regarding tax consequences because we donât know the rules of the game right now. My advice to anyone is if you are making a decision that has tax consequences, if you can delay that activity or that action until we have better visibility on whatâs going to happen, thatâs a good thing to do.
For more information or to schedule a time to speak to Ray Reeves, call 970-215-5882 or visit www. www.highprairietax.com. A
â Jordan Hedberg
