The Costly Mistake Bob Made—and How Sammie Saved Thousands on Her Taxes

Why Sharing Prior Year Tax Returns with Your Accountant Matters

Introduction:

When starting with a new tax preparer, most business owners focus on current-year numbers. But overlooking your prior year tax returns could mean leaving serious money on the table. In this blog post, we’ll explore how Sammie the Star saved tens of thousands in taxes—and how Bob the Bad Builder missed out—by choosing whether or not to share past returns. Jon Markee, your Builder CPA, explains why this small step can make a big financial difference.

Sammie the Star: Proactive and Prepared

Sammie, always the strategic builder, followed her in-house accountant’s advice and shared her prior two years of tax returns with her new tax preparer. This gave her accountant a full picture of her tax history and allowed them to spot unused deductions and carry-forward losses.

• Her accountant found large carry-forward losses from a tough year two years ago.

• These losses could be applied to reduce her current year’s taxable income.

• The result? Tens of thousands of dollars in tax savings that Sammie reinvested into her business.

Because her accountant had all the information upfront, they were able to build a smart, forward-thinking tax plan to ensure Sammie never missed a deduction.

Bob the Bad Builder: Missed Opportunities

Bob, unfortunately, took a different route. He assumed that his current year’s income and expenses were all that mattered and didn’t bother sharing past returns. His accountant didn’t ask either—so no one ever discovered that Bob had major carry-forward losses from a slow year just last year.

• Without that information, Bob paid taxes on income that could have been offset.

• He ended up with a much higher tax bill than expected.

• Worse, he had no idea that this all could have been avoided with one simple step.

Why Prior Year Returns Matter

When a new tax preparer reviews your past returns, they can uncover key tax-saving opportunities:

• Carry-forward losses from previous bad years

• Unused tax credits or deductions that still apply

• Better tax planning for future years

This isn’t about “cheating” or giving your accountant an “answer key.” It’s about giving them the tools to do their job well.

Conclusion:

Sammie’s proactive move led to big savings. Bob’s assumption cost him dearly. If you’re working with a new tax preparer, don’t skip this critical step. Sharing prior year returns could unlock valuable tax savings and help your accountant create a smarter financial strategy.

Be like Sammie. Give your accountant the full picture—and let them help you make the most of every tax-saving opportunity.

For more insights like this, follow Jon Markee—your Builder CPA—and stay ahead of costly tax mistakes.