The year is quickly coming to an end, and the major IRS tax deadlines have passed, but that doesn’t mean you can slack on your tax preparation completely.
As soon as the new year starts, the entire process for filing taxes starts all over again. If you experienced a difficult time this past tax season, then here are five simple ways you can prepare better for next year.
Keep Detailed Records
It doesn’t matter if you usually file taxes on your own or with a tax professional – each situation requires proper records that are accurate
. The more you become organized, the easier it’ll be to access the information you need to report to the IRS.
There are numerous software programs available that assist with tracking your bank statements, receipts, or invoices and create end-of-year reports. If you prefer keeping physical paper documents, choose a storing method that allows for easy catalog and accessibility – not a huge pile in a single folder or box.
Document Payments to Employees or Contractors
For businesses and tax-exempt groups with paid employees or contractors, it’s critical to be aware of the current tax rates when issuing paychecks – a tax consultant can help with any questions. If you’re responsible for filing 1099s and W-2s to the IRS, you can visit our sister site, ExpressIRSForms.com
, for cloud-based solutions to e-filing information returns directly with the IRS. You’ll also have access to copies of each tax form you transmit for the filing year.
Find Qualifying Tax Deductions
Claiming tax deductions can substantially lower your tax bill. There are numerous claims available for business and personal taxes. A tax professional or CPA can help go through your financial situations and find a few deductions you might not have known were accessible.
Consult with a Tax Professional
Sometimes you can be well prepared for tax season and still have issues with figuring out what it is the IRS is asking for exactly. It could be because of the legal jargon or confusion with categories and amounts. At times like these, we recommend seeking a tax professional for advice. It may not be free in some cases, but it’s better than filing inaccurate information and getting hit with IRS penalties.
E-file a Tax Extension
If you just can’t get things together to file on time, which is more common than you think with taxpayers, file an extension and receive more time to submit your tax return. With ExpressExtension.com, we offer cloud-based technology for e-filing business, personal, and tax-exempt extensions.
Tax extensions are extremely helpful, but you have to remember to file by the extended due date. They can only increase the time you have to file your IRS form. If you owe any taxes, you are still accountable for paying in full by the original deadline.
Contact our U.S. – based, customer support for more information or help with transmitting tax extension to the IRS. You can reach us by phone at 803.514.5155, Monday through Friday from 9 a.m. to 6 p.m. EST or by email with [email protected].