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 ever-changing. 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 affect your tax obligations like marriage and employment. Many tax attorneys and certified public accountants are subject matter experts in tax law. If you research the application of tax laws, the authoritative sources of tax law are statutes, regulations and court decisions.
- Remember, tax law requires payment of only the taxes you owe. Regularly review your withholdings and estimated tax payments (if applicable) 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 as follows: know the types of income, expense, gain and loss that may impact your returns; know the types of information returns used in income tax return filing; understand what completeness and accuracy are 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. Work with a certified public accountant and certified bookkeeper year-round. Review the official website of the IRS to keep abreast with updates in the tax world. Contact Pierce, CPA & Advisors about other due diligence directives within your accounting stewardship.
- Use online accounts to interact with your taxing authorities. 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.
Pierce, CPA & Advisors welcomes opportunities to assist individuals, businesses and nonprofit organizations who help business owners with their accounting plans. Best wishes and a happy tax year!
Pierce, CPA & Advisors’ website, social media posts and blogs are meant to be used as informational guides and should not be construed as providing any health, legal, business or accounting advice. A best practice is to consult with professionals like government officials, healthcare experts, Certified Public Accountants, Certified Bookkeepers, attorneys, etc., about your situation.
Contact Pierce, CPA & Advisors at (205) 370-4508 and/or welisten@AuthenticCPA.com.