Want to Avoid Stress? Work with Your CPA Throughout the Year

By working with your CPA to organize tax information throughout the year, you can help ensure you have everything you need to minimize your tax liability and avoid surprises. There are simple solutions to keep the tax deadline from growing into an annual source of stress. 

Manageable Ways to Organize Tax Information:

      • Compile documentation throughout the year.
      • Keep all documents in one place.
      • Separate personal documents from business documents. 
 

Information You Need to Gather:

      • All tax statements issued to you - W-2, 1098 (mortgage interest), K-1s, 1099s (DIV, INT, Sales of Securities, Retirement Plans, Social Security, student loan interest, college tuition)
      • Support for business and rental properties - income and expenses
      • Support for itemized deductions - charitable contributions, real estate taxes, and medical expenses
      • List of estimated tax payments paid

File an Extension

Why stress about the tax deadline when you can just extend your return? Contrary to popular belief, filing an extension does NOT increase your likelihood of being audited by the IRS. It allows you and your CPA more time to gather all the needed documentation and file an accurate return. Keep in mind that extending your tax return does not extend your time to pay - make an extension payment to cover the liability you expect. 



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