For many people, tax time brings a scramble to find and organize papers. Even if you pay for tax preparation Long Island NY, you still have to gather the basic information to give the accountant. These tips below will assist you in surviving the tax season.
Get Items to Your Accountant Early
Remember that accountants are under a time crunch as the April 15 tax deadline approaches each year. If your return is not filed or if you do not pay what you owe by this date, you can face significant financial penalties.
While most accountants will give each return careful attention, they are human. They are more likely to make mistakes if they are rushed. Give them plenty of time to complete your return, and they will likely return the favor by contacting you with advice for future years. They will dig deeper into possible deductions and credits.
Organize Items Throughout the Year
Avoid a last minute scramble to find receipts by keeping all items related to charitable donations and business expenses in a designed folder in your desk. Alternatively, scan items as you go and place the scans in one folder on your computer. At the same time, keep an itemized chart of the receipts in Excel. Your accountant will find it easier to reference an Excel file than to dig through and compile your receipts.
Read News Articles About Tax Law Changes
Federal and state tax codes change every year. You can easily miss subtle changes that impact how you can claim deductions and credits. Read articles about the latest changes in tax laws before you meet with your accountant. This way, you will be prepared to ask questions about how these changes apply to your situation.
By keeping your financial information organized throughout the year, allowing plenty of time, and being prepared with tax law questions, you will make the most of your relationship with your accountant.