It’s Time To COPE Your Tax Records

It’s Time To COPE Your Tax Records

The upcoming tax season is rapidly approaching. Despite the shifts in Washington D.C. (and possible updates to the Internal Revenue Code), managing your tax records throughout the year is a best practice. Consider the below action items as you deal effectively with your tax records:

  • COLLECT. Be familiar with the events in your life that elevate your tax obligations. Know who your payors (and payees) are and assess their reputation for providing timely information. Generally, individuals receive annual information returns via their employer’s intranet or mail. However, Pierce, CPA & Advisors recommends you implement in-house tracking and record retention processes for your income and expense transactions.
  • ORGANIZE. One of your objectives with bookkeeping is clarity as you work with your tax information. The naming or filing system you use should allow you to compile information requested by your regulatory agencies. Being organized helps reduce stress during the filing season.
  • PRESERVE. Be aware of the statute of limitations set by your regulatory agencies for tax and tax-related documents. Digital and other electronic formats store documents. Also, a paper trail is a vehicle to preserve source documents. Protect the information from destruction – fireproof, waterproof, ink proof, cyber-security proof and theft proof. 
  • EVALUATE. A common theme amongst the COPE action items is that the information must be complete, accurate, reliable and accessible. Regularly monitor the changes in your tax information and financial reports. Add to your analysis the review of tax savings you may qualify for and your pre-retirement and tentative retirement tax brackets.

The above list is a starting point for your bookkeeping journey. Have a strategy and work toward the goal of zero compliance gaps. Use bookkeeping to assess your tax (and financial) situation and plot a course for where you want to go. Remember, the United States Department of Treasury Internal Revenue Service expects taxpayers to pay only the taxes they owe.

Pierce, CPA & Advisors welcomes the opportunity to assist you with how to work with the COPE action items, planning how you may improve your family’s tax situation and filing accurate and complete returns. Let’s get started!

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

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