Tax Package Preparation

Year-end tax package preparation pipeline for QBO-connected clients. Generates a 9-tab Excel workbook: Tax Summary, Income, Expenses, Depreciation, 1099s, State Nexus, Crypto (Form 8949), Checklist, and CDC. Reads client SOP for entity type, crypto wallet, vehicle, home office, and FBAR flags. Maps every line item to IRS form and schedule codes.

Prepare a complete year-end tax package for client filing. Pulls full-year financial data from QBO, reads the client SOP for entity configuration, and generates all tax-ready schedules with IRS form mapping.

When To Use

Use when:

• Client needs year-end tax package for CPA/tax preparer
• Generating income/expense schedules with IRS line mapping
• Identifying 1099 vendors (paid >$600)
• Flagging crypto exposure (Form 8949) from SOP wallet address
• Checking for FBAR requirement (FinCEN 114)
• Detecting multi-state nexus risk
• Building carryforward analysis (NOL, Sec 179, charitable)
• Tracking year-over-year tax position changes (CDC)

NOT for:

• Monthly close → use month-end-close.py
• Bank reconciliation → use bank-reconciliation.py
• P&L variance analysis → use pl-deep-analysis.py
• Payroll tax returns (941, 940, W-2s) — separate workflow
• Actual tax return preparation (CPA reviews all output before filing)

Quick Start

bash

# Standard run — pulls full year from QBO
python3 scripts/pipelines/tax-package-prep.py --slug my-client --year 2025

# Skip GL drill (faster, less vendor detail)
python3 scripts/pipelines/tax-package-prep.py --slug my-client --year 2025 --skip-gl

# Custom output directory
python3 scripts/pipelines/tax-package-prep.py --slug my-client --year 2025 --out ~/Desktop/tax-2025

# QBO sandbox
python3 scripts/pipelines/tax-package-prep.py --slug my-client --year 2025 --sandbox

Requirements

bash

pip install openpyxl
# QBO auth token must already be configured

Output: 9-Tab Excel Workbook

Tab	Contents
Tax Summary	Entity info, key tax metrics, special flags (crypto/FBAR/vehicle/home office), SOP watch items
Income Schedule	Revenue by category with IRS Sch C / 1120 / 1065 line mapping
Expense Schedule	Expenses with IRS line mapping, 50% meal limit applied, deductible amounts
Depreciation	Fixed assets from GL + BS, MACRS / Section 179 / Straight-Line detection
1099 Vendors	Vendors paid >$600, form type (NEC/MISC), corp exemption flag, W-9 action list
State Nexus	Multi-state revenue/expense pattern detection, HIGH/MEDIUM/LOW risk rating
Crypto Flag	Form 8949 flag, wallet address, FBAR assessment, action item checklist
Checklist	READY / NEEDS INPUT / MISSING for every tax package item
CDC Log	Year-over-year income and expense position changes

SOP Integration

The pipeline reads clients/{slug}/sop.md to auto-configure:

SOP Signal	What It Triggers
S-Corp / 1120-S	Entity = S-Corp, officer W-2 flag, K-1 checklist item
C-Corp / 1120	Entity = C-Corp, E&P tracking, charitable 10% limit
Partnership / 1065	K-1 prep checklist, partner basis tracking
0x[wallet] (ETH address)	Crypto flag, Form 8949, wallet address in output
crypto / bitcoin / defi	Crypto flag, Form 8949 required
vehicle / mileage	Vehicle schedule, mileage log requirement
home office / Form 8829	Home office flag, sq footage action items
SAFE / convertible note	SAFE treatment watch item
foreign / offshore	FBAR flag, FinCEN 114 action
NOL / loss carryforward	Carryforward analysis
Section 179 carry	Section 179 carryover check
interest expense	Watch item: verify deductibility

IRS Schedule Mapping

Expense Categories (auto-mapped)

• Advertising → Sch C Ln 8 / 1120 Ln 22 / 1065 Ln 21a
• Vehicle/Auto → Sch C Ln 9 (standard mileage or actual)
• Contract Labor → Sch C Ln 11 (triggers 1099-NEC scan)
• Depreciation → Sch C Ln 13 / Form 4562
• Interest → Sch C Ln 16 / 1120 Ln 18
• Legal/Professional → Sch C Ln 17
• Wages → Sch C Ln 26 / 1120 Ln 13
• Meals/Entertainment → Sch C Ln 24 (50% limit applied automatically)
• Home Office → Sch C Form 8829

Income Categories (auto-mapped)

• Service Revenue → Sch C Ln 1 / 1120 Ln 1a
• Product Sales → Sch C Ln 1 / 1120 Ln 1a
• Interest Income → Sch B
• Crypto → Form 8949 / Sch D

1099 Vendor Logic

Scans all GL expense accounts and aggregates by vendor name:

• Include: Vendors paid ≥$600 via check/ACH/wire (not credit card)
• 1099-NEC: Contractors, consultants, attorneys, freelancers
• 1099-MISC: Rent, royalties, medical payments
• Exempt: C-Corps and S-Corps (except attorneys and medical providers)
• Flag: "Inc", "Corp", "LLC" in vendor name → verify entity type
• Deadline: January 31 (1099-NEC), January 31/March 31 (1099-MISC)

State Nexus Detection

Scans GL memos, vendor names, and account names for US state indicators:

• HIGH risk: 5+ indicators in a state → likely nexus, recommend registration review
• MEDIUM risk: 2-4 indicators → investigate further
• LOW risk: 1 indicator → monitor

Physical nexus (employees, office), economic nexus ($100K revenue threshold), and payroll nexus are all flagged.

Crypto / FBAR Logic

Crypto:

• Detects from SOP wallet address (0x... pattern) or crypto keywords in GL
• Flags Form 8949 and Schedule D requirement
• Detects staking (ordinary income) vs. sales (capital gains) from GL memos
• Action list includes exchange export, cost basis calculation, software recommendation

FBAR (FinCEN 114):

• Triggers on foreign account keywords in GL or SOP
• FBAR threshold: $10,000 aggregate foreign account balance at any point in the year
• Also checks Form 8938 (FATCA) thresholds
• Deadline: April 15 with automatic extension to October 15

CDC Cache

Each run saves a snapshot to .cache/tax-package-prep/{slug}-{year}.json.
The next year's run computes year-over-year deltas for income and expense accounts.
CDC events are shown in the CDC Log tab sorted by absolute dollar change.

Depreciation Detection

Scans GL and Balance Sheet for:

• Fixed asset account names (equipment, vehicle, computer, furniture, leasehold)
• Accumulated depreciation account names
• Memo keywords: "section 179", "MACRS", "bonus depreciation", "straight-line"
• P&L depreciation expense line items

Output includes: account, year-end balance, period activity, detected method, Section 179 flag.

Estimated Tax Payments

Scans GL for estimated tax payment entries:

• Account names: "estimated tax", "quarterly payment", "1040-es", "1120-w"
• Memo keywords: same
• Classifies by quarter (Q1-Q4) based on payment date
• Flags missing quarters → client must verify with bank statements

Checklist Status Definitions

Status	Meaning
✅ READY	Data found in QBO — no client action needed
⚠ NEEDS INPUT	Requires additional documentation from client
❌ MISSING	Not found — QBO pull failed or data doesn't exist

File Locations

• Pipeline: scripts/pipelines/tax-package-prep.py
• CDC Cache: .cache/tax-package-prep/{slug}-{year}.json
• Output: ~/Desktop/TaxPackage_{slug}_{year}.xlsx (or --out dir)
• Skill: skills/tax-package-prep/SKILL.md

Notes

• All financial math uses Python Decimal — no float rounding errors
• Output is for CPA/tax preparer review — not a filed return
• Vehicle deduction: requires mileage log from client; pipeline flags but cannot calculate
• Home office: requires square footage from client; pipeline flags Form 8829 requirement
• Entity-specific items (K-1s, basis tracking, E&P) are flagged as checklist items, not generated
• Carryforward amounts require prior-year return — pipeline flags for review but cannot pull from prior returns