18 Apr 3 Tips To Make The Days After Tax Day Count
Tax Day, April 17, has come and went. How did you do? With the signing of the Tax Cuts and Jobs Act, due diligence should be a forethought versus an afterthought. Below are best practices most taxpayers should consider:
- Implement processes to preserve your important documents. There is a wide variety of document storage medium due to technological advancement. Tools such as safe deposit boxes, folders, flash drives and software such as Dropbox are popular storage devices. It is important that your record retention processes are under your control, fireproof and secure. For more information about record gathering and safekeeping, see the blog It’s Time To COPE Your Tax Records.
- Utilize the IRS’s Withholding Calculator regularly. This tool can be accessed on the IRS’s official website. The goal is for your withholdings and/or estimated tax payments be equal your total tax obligation for the year. This outcome takes attentiveness and planning.
- Recognize life events that contribute to your tax situation (whether simple or complex) and document the substance (e.g., specifics of the transaction that qualifies you for a tax benefit) of those transactions.
In addition to the above items, review your tax return again to access your tax situation and read the blog 3 Line Items On Your Form 1040 That You Should Memorize. For taxpayers who timey filed Form 4868, Application for Automatic Extension Of Time To File U.S. Individual Income Tax Return, you have until Monday, October 16, 2018 (generally) to file your return. Remember, taxes are to be paid timely and this request only extends your time to file your return.
Further, keep up with the latest tax news and consider partnering with a tax professional. Many tax professionals including The Internal Revenue Service are on social media and have informative websites. Even though websites, newsletters and blogs are very, very helpful, you have the option of reviewing primary sources of tax law such as the Internal Revenue Code, decisions of the United States Tax Court, district courts, Court of Federal claims, federal circuit courts and the United States Supreme Court, Treasury Regulations, the Internal Revenue Bulletin and other Internal Revenue Service materials such as Private Letter Rulings. Best wishes!