top of page
Welcome to the Parker Franklin Tax LLC blog — a resource created to help individuals and small business owners better understand taxes, IRS requirements, and smart financial decisions. These articles are designed to break down complex tax topics into clear, practical guidance you can actually use.
From personal and business tax planning to IRS notices, audits, and representation, this blog covers timely topics that affect taxpayers throughout the year — not just during tax season. Whether you’re looking to reduce future tax liability, stay compliant, or understand an IRS letter you’ve received, you’ll find straightforward explanations and helpful insights here.
All Posts
The Full Accounting Cycle for a Small Business With Inventory and Employees
Part 1: From the Close of One Year to the Daily and Monthly Rhythm of the Next Accounting for a small business that employs people and sells physical inventory is not a series of disconnected tasks. It is a continuous system that repeats itself every year, with each cycle building on the accuracy of the previous one. The accounting year does not truly begin on January 1. It begins only after the prior year has been fully closed, reviewed, and finalized. Understanding this dis
6 days ago11 min read
The Full Accounting Cycle for a Small Business With Inventory and 12 Employees
A Complete, Step-by-Step Guide From the First Day of the Year to the Next Year-End Close Running a small business that employs staff and sells physical inventory requires far more than simply tracking money in and money out. Accounting is a continuous cycle , not a once-a-year event, and each step builds on the one before it. This guide walks through the entire accounting cycle for a typical U.S. small business with: Approximately 12 W-2 employees Physical inventory (not dr
6 days ago8 min read
CPA vs. Enrolled Agent: What’s the Difference?
Which Tax Professional Is Right for Houston & Clear Lake Taxpayers? If you’re searching for tax help in Houston, Clear Lake, or the Bay Area, you’ve probably seen two titles over and over again: CPA and Enrolled Agent . At first glance, they can seem interchangeable — both prepare tax returns, both know the tax code, and both work with the IRS. But the differences between a CPA and an Enrolled Agent matter more than most taxpayers realize — especially if you’re dealing with
6 days ago4 min read
IRS Penalties Explained for Houston Taxpayers
What Clear Lake Residents and Business Owners Need to Know Before the IRS Adds More to Your Bill For many Houston-area taxpayers, the most frustrating part of dealing with the IRS isn’t just the tax owed — it’s the penalties that quietly pile on top of it . By the time someone in Clear Lake, League City, or along Bay Area Blvd reaches out for help, penalties and interest have often turned a manageable balance into a serious financial strain. The good news? Most IRS penalties
6 days ago4 min read
What Happens If You Owe the IRS Back Taxes?
Short answer first: If you owe the IRS back taxes, the situation does not fix itself with time. Penalties and interest continue to grow, and the IRS will escalate collection efforts if you ignore the balance. The good news is that most Texas taxpayers have multiple resolution options if they act early and strategically. For taxpayers in Clear Lake , Houston , League City , Friendswood , and in the Bay Area , understanding what happens next can reduce stress and prevent expe
Jan 73 min read
How Tax Season Feels to Most vs How it Should Feel!
Does the Thought of Taxes Make You Feel Handcuffed and Like you Are a Hostage to the IRS? Lets Talk About Ways To Get You Feeling Like This Guy After You Do Your Taxes! Two thumbs up is the only way my clients feel after they are done with their taxes! Its my goal that people feel happy with their tax return and the options that are available to them. It is my goal that I help all of my clients to not pay a single dollar more of taxes than they are legally required to pay! If
Jan 71 min read
What Records Small Businesses Should Keep for the IRS (Houston & Clear Lake, TX Guide)
One of the fastest ways a small business gets into trouble with taxes isn’t underreporting income—it’s poor recordkeeping . For many small business owners in Houston, Clear Lake, League City, and surrounding Southeast Texas , the biggest risk isn’t an audit itself, but being unprepared if questions ever arise. When records are missing, unclear, or inconsistent, even legitimate deductions can be disallowed. The good news? You don’t need to keep everything . You just need to k
Jan 65 min read
How to Handle Back Taxes as a Small Business Owner (Houston & Clear Lake, TX Guide)
Discovering that your business has back taxes can feel overwhelming. Many small business owners immediately worry about audits, bank levies, or losing their business altogether. The reality is far less dramatic—and far more manageable—than most people think. Back taxes are extremely common among Houston, Clear Lake, League City, and Bay Area small businesses, especially newer ones. Cash flow changes, misunderstood tax rules, missed deadlines, or rapid growth can all lead to
Jan 64 min read
Common Tax Mistakes Made by First-Time Business Owners (and How Houston Businesses Can Avoid Them)
Starting a business is exciting—but for many first-time business owners in Houston, Clear Lake, League City, and the surrounding Bay Area , taxes are where that excitement often turns into stress. The truth is this: most costly tax mistakes aren’t caused by bad intentions—they’re caused by bad assumptions. New business owners assume software will “handle it,” assume their income is too small to matter, or assume they can fix everything later at tax time. Unfortunately, the t
Jan 65 min read
Tax Planning Tips for High-Income W-2 Employees
Short answer first: High-income W-2 employees reduce taxes through planning, not payroll changes . The biggest savings come from retirement optimization, benefit elections, timing strategies, and proactive withholding reviews. Filing alone leaves money on the table. For professionals in Clear Lake , Houston , League City , and along Bay Area Blvd , especially in aerospace and medical fields, smart tax planning can prevent recurring tax bills and missed opportunities. Table o
Jan 53 min read
Small Business Tax Deadlines Every Houston Owner Should Know
Short answer first: Missing tax deadlines costs Houston small business owners money through penalties, interest, and lost planning options. Most problems are not caused by high taxes, but by missed or misunderstood deadlines . Knowing the calendar creates control. For business owners in Clear Lake , Houston , League City , and Friendswood , staying ahead of deadlines is essential—especially in industries like aerospace services, medical practices, and professional consulting
Jan 53 min read
How Tax Planning Differs From Tax Preparation
Short answer first: Tax preparation reports the past. Tax planning shapes the future. Preparation happens after the year ends. Planning happens before decisions are locked in. Houston taxpayers who rely only on preparation often overpay taxes year after year. For individuals and business owners in Clear Lake , Houston , League City , and in the Bay Area , understanding this difference is the key to lowering taxes legally and predictably. Table of Contents What Is Tax Prepar
Jan 53 min read
When to Start Tax Planning (Hint: Not April)
Short answer first: The best time to start tax planning is before the year ends , not during tax season. April is for filing. Real tax savings happen months earlier, when decisions can still be changed. Houston taxpayers who wait until April usually miss their biggest opportunities. For individuals and business owners in Clear Lake , Houston , League City , and in the Bay Area , timing is the single most important factor in reducing taxes legally. Table of Contents Why Is Ap
Jan 53 min read
What Expenses Can a Houston Small Business Deduct?
Running a small business in Houston or the Clear Lake area comes with no shortage of expenses. Between rent, equipment, vehicles, software, and professional services, costs add up quickly. The good news is that many of these expenses may be tax deductible , reducing your taxable income and lowering your overall tax bill. The challenge for most Houston small business owners isn’t spending money — it’s knowing which expenses are deductible, how to document them properly, and ho
Jan 55 min read
Sales Tax vs. Income Tax for Texas Businesses: Two Very Different Beasts That Get Confused All the Time
Texas business owners often lump “taxes” into one mental bucket, but sales tax and income tax live in completely different worlds. They are governed by different rules, collected in different ways, enforced by different mechanisms, and—most importantly—misunderstood for very different reasons. One is transactional and mechanical. The other is analytical and strategic. Treating them as interchangeable is how small mistakes quietly snowball into expensive ones. Texas adds an
Jan 55 min read
End-of-Year Tax Planning Checklist for Texas Businesses
Short answer first: End-of-year tax planning helps Texas businesses lower taxes, improve cash flow, and avoid surprises. The biggest savings happen before December 31 , not during filing season. Strategy beats software every time. For small business owners in Clear Lake , Houston , League City , and along Bay Area Blvd , year-end planning is especially important due to variable income and industry-specific deductions. End-of-year tax planning is the last real opportunity bu
Jan 55 min read
How Engineers in Clear Lake Can Reduce Tax Liability- Tax Strategies for Engineers
Short answer first: Engineers in Clear Lake reduce tax liability through proactive planning , not last-minute filing. The biggest savings come from retirement optimization, compensation timing, benefit elections, and coordinated household planning. High income without strategy leads to predictable overpayment. For engineers working in Clear Lake , Houston , League City , and along Bay Area Blvd , especially in aerospace and technical roles, tax planning can materially improv
Jan 54 min read
Quarterly Tax Planning for Consultants & Contractors
Short answer first: Quarterly tax planning helps consultants and contractors control cash flow, avoid penalties, and lower total taxes . Waiting until April usually creates surprises. Planning every quarter creates predictability. For consultants and contractors in Clear Lake , Houston , League City , and along Bay Area Blvd , quarterly planning matters because income is variable and withholding does not exist. For consultants and contractors, taxes are not withheld automat
Jan 54 min read
Tax Planning Mistakes Houston Business Owners Make
Short answer first: Most Houston business owners overpay taxes because they confuse tax filing with tax planning . The biggest mistakes involve timing, entity structure, bookkeeping discipline, and waiting too long to ask for guidance. These errors compound quietly year after year. For business owners in Clear Lake , Houston , League City , and along Bay Area Blvd , avoiding these common mistakes can protect cash flow and reduce unnecessary IRS exposure. Table of Contents Why
Jan 55 min read
Schedule C vs. LLC vs. S Corp: Which Is Best in Texas?
Short answer first: There is no single “best” structure for everyone. The right choice depends on profit level, risk tolerance, and long-term goals . In Texas, many business owners stay on Schedule C too long, form an LLC without tax planning, or elect S corp status before it actually makes sense. For business owners in Clear Lake , Houston , League City , and Friendswood , especially in aerospace services, medical consulting, and professional trades, choosing the right stru
Jan 33 min read
bottom of page