Tax season has rolled around again, and with it comes the inevitable dread that can accompany it. Many of us fear making even a small mistake and facing consequences from the IRS. But fear not! Accountants are here to share their top tips to ensure a smooth filing process. Check out these expert insights to help you sail through tax season without a hitch:
Don’t File Without Ensuring All Documents Are in Order
Before filing, make sure you have all your documents in hand. This includes reporting all sources of income, regardless of size. According to Logan Allec, a CPA and owner of Choice Tax Relief, failing to report income can lead to IRS notices and hefty penalties. Keep meticulous records and consider using the IRS’s wage and income transcript for comprehensive documentation.
Consider Filing for an Extension if Needed
Feeling rushed? Don’t hesitate to file for an extension. As an Enrolled Agent and Tax Specialists, I can reassure you that extensions are a useful tool to ensure accuracy and alleviate stress. Plus, they’re free and won’t raise red flags with the IRS. Use the extra time to research deductions and contributions that can lower your taxable income.
Understand the Rules Behind Tax Deductions
Avoid blindly claiming deductions without understanding the rules. Allec warns against overly aggressive tax strategies, emphasizing the importance of thorough research or seeking professional advice. Hiring a tax professional may save you money in the long run by avoiding costly mistakes or audits.
Know What Counts as a Business Expense
Rothbauer advises caution when deducting business expenses. Items must be exclusively used for business purposes to qualify for deductions. Be aware of strict IRS rules regarding deductions, and focus on expenses that are truly deductible. Familiarize yourself with legitimate deductions to maximize savings without risking audits.
Maintain Impeccable Bookkeeping for Business Losses
If you’re reporting business losses on Schedule C, ensure your records are spotless. Allec stresses the importance of meticulous bookkeeping and retaining receipts to substantiate losses. This can prevent audits and ensure a smooth resolution if your return is scrutinized by the IRS. By following these expert tips, you can navigate tax season with confidence and ease. Remember, proper preparation and understanding of tax regulations are key to a stress-free filing experience.
Get Compliant and Get Tax Relief
Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
