Tuesday, 9 August 2016

Top 7 Tips for Tax Return Preparation

The federal government estimates that 60% of individuals use paid preparers to complete and submit their tax returns. Certified Public Accountants have taken the biggest portion of tax preparers.
CPAs in Gaithersburg take almost all small business tax preparation in the United States. The Accountants lias with the IRS and the client to ensure all taxable areas are covered.
small business tax preparation

Here is the list of top Tax Return Preparation Tips:

  1. Choose a Tax Preparer CPA

The IRS should certify the preparer and should have relevant tax return preparation credentials.
  1. Gather your information for Tax Returns

In case you choose CPAs in Gaithersburg, MD, Here are the basic forms they will ask for:
  • Form W-2
  • Form SSA-1099
  • New Form 1095-A
  • Various 1098s)
  • Form W-2Gs for certain gambling winnings
  • Schedule K-1s from entities in which you have an ownership interest

  1. Get your receipts together

For small business tax preparation, annual tax receipts for deductible expenses. For business incomes and expenses, books and bank records are mandatory.
  1. Gather records for charitable contributions

In case you have engaged in any charity work, ensure you file the records in the tax return preparation drafts, for accountability.
  1. Brace yourself for tax law changes

CPAs in Gaithersburg keep changing rules depending on the IRS mandate and target. Read through the annual laws and comply to avoid penalties.
  1. Make a list of personal information

Write down current and accurate personal information including addresses of vacation homes and rental property; dates you moved; information about property you bought and sold, including dates, what you originally paid, what you received on the sale and expenses you had) needed to complete your return.
This is especially important for small business tax preparation since their records may have not reached the IRS.
  1. Find a copy of last year’s return

Every year that you file tax returns, save a copy for reference purposes. In addition, the copy can be used for comparison purposes as it is an indication of taxable income the business has achieved.
Start early doing prep work for your income tax so you will have a successful tax return experience. Whether you are doing your own return, or having a preparer do it, thorough documentation and organized records will reduce the time
Most of all, these 7 tax preparation steps will ensure that you are not missing out on any tax benefits.

1 comment:

  1. This is the first year I am doing my own taxes, so I really appreciate you sharing your tax preparation tips. I especially like your advice to gather records for charitable contributions. I donate money every month to my church so it's a good idea to keep that all in order so it's easy to submit your taxes early. http://www.jmvcocpas.com/client_services.html