Filing taxes can be a daunting task. With the deadline quickly approaching, we have gathered some tips and tricks from well-respected tax specialists Jennifer Grammer, Karen Orlando and Tiffany Huntington to get you on the right track.
To begin with, being organized with your information and receipts will save you time and money in the long run.
“Gather all of your information and send in one email/package to your CPA. Sending in piece-meal information only drives up the tax prep bill because the preparer has to spend time consolidating all work papers sent in. Prepare a summary sheet that outlines all work papers being sent, this way you are both on the same page as far as what has been sent in,” says Grammer, a CPA and Tax Manager at Whitley Penn, LLP.
Another good tip is to establish an ongoing communication with your tax planner throughout the year so that they can help you as life events occur.
“Develop a good relationship with your tax professional, communicate often and reach out before you act. Tax planning is pro-active, not reactive. Do not underestimate the power of good bookkeeping and quality records. Sloppy bookkeeping often leads to missed deductions,” explains Orlando, an EA at FactFinder Accounting & Tax Services, LLC.
Life is unpredictable, so staying ahead of the game helps!
“Don't wait until the last minute to ask for help! Oftentimes, clients might think they will make time to do their bookkeeping, find their documents, look for tax advice on a complex item or whatever the situation might be. These issues get pushed off due to our busy lives. Seek help on the front end! It will likely save a huge headache for the client as well as the tax advisor, as well as in a lot of cases, penalties and interest from delaying tax payments due to unexpected tax liabilities. As we have seen with the Covid-19 pandemic, we never know what will happen!,” Says Huntington, a Tax Advisor at Purely Solutions.
With organization, communication and an effective tax specialist, you’ll be pleased to learn how easy filing taxes