14 Jan 5 Keys To A Successful Tax Year
Do you feel like “the hardest thing to understand in the world is the income tax (Albert Einstein)?” Yes, federal and state income tax laws are complex. Taxation in the United States of America (and internationally) is evolving. As you pursue meeting your tax obligations, consider the below action-items:
- Be familiar with the tax laws that affect your tax household. Assess events in your life that may have an impact on your tax obligations such as matrimony, employment, etc. Consult with the IRS, a tax professional and/or perform research on the application of tax laws.
- Remember, tax law requires payment of only the taxes you owe. Regularly review your withholdings and/or estimated tax payments whether you are an employee or a self-employed person.
- Bookkeeping is a recommended task for taxpayers. Collect, organize, preserve and evaluate (COPE) your tax records. Three of the many keys to Bookkeeping the Right Way are knowing the types of income, expense, gain, loss, etc. that may impact your returns, types of information returns used in income tax return filing and what is completeness and accuracy as set forth by your regulatory agencies.
- Interview your tax professional. The IRS’s Directory of Federal Tax Return Preparers with Credentials and Select Qualification is available for your review. Working with a certified public accountant year-round, reviewing the official website of the IRS to keep abreast with what is new or not so new in the tax world, etc. are viable options for your tax plan. Feel free to contact us for other due diligence directives recommended for accounting stewardship.
- Use online accounts to interact with your taxing authorities. Join a newsletter, twitter feed (e.g., @AuthenticCPA) and/or review reputable websites within the public accounting industry.
There are several other keys to a successful tax year beyond the scope of this blog. Assuredly, filing a complete, accurate return demonstrates a high level of voluntary tax compliance. We welcome opportunities to assist individuals, businesses and nonprofit organizations with their accounting and business plans. Best wishes and happy tax year!