In a few short weeks, the IRS will begin to accept many electronically filed tax returns. Will you be ready? Have you begun preparing your mind for the mountains of receipts, gathering of forms and general anxiety that typically accompanies this required annual task? Below, we’ve shared 3 quick tips to help you prepare yourself for the inevitable.
1. Interview at least 3 Tax Service Providers – If you don’t already have a trusted tax service provider (and sometimes even if you do), we suggest interviewing a minimum of three different providers. We suggest spending time with providers with different backgrounds, years of experience, credentials, and personalities. For example, speaking with a CPA may help you decide that your tax situation doesn’t warrant the higher fees that many CPA’s typically charge. On the other hand, some big-box tax services may only offer very minimally trained individuals to prepare your return while charging elevated fees for bank products that you might not be interested in. There are online software providers that advertise they provide free tax return filing, but we suggest you read the fine print before committing to one of these packages. Your final cost may be much higher than you anticipated.
2. Use a really good Tax Organizer – Tax Organizers come in a myriad of formats and complexities. They may be as short as 2 -3 pages or much longer & more thorough. Some are geared towards personal tax return preparation while others focus on preparing to file a business return. Many tax accountants and tax preparers will provide complimentary tax organizers to their clients. To save you time, be sure to ask your provider questions about the things that you don’t understand and if any of the sections may or may not apply to your situation.
3. Gather your Documents – Now that you’ve met with your tax service provider and started reviewing your tax organizer, it’s time to gather your documents. The IRS requires that W2’s and 1099’s be distributed by January 31st. If you haven’t received all your necessary documents, you should expect them within the next few weeks. If you haven’t received your documents by Feb 15th, contact your employer or financial institution, etc to inquire on the status. Also, be aware that many companies provide these documents electronically on their websites.
Finally, relax and breathe! The upfront work is done. Schedule your appointment with your tax service provider and rest assured that your hard work should help the process go smoothly!
Kemberli Stephenson is The Profit Sherpa & works with rapid growth women entrepreneurs, speakers, coaches, authors, small business owners, entertainers, etc. She helps those who are looking to impact their bottom line, increase profit margins and grow a successful business. Kemberli helps entrepreneurs rapidly increase profits by helping individuals and companies chart a course to the summit, discover their danger zones and blind spots, and develop and implement profit strategies that will grow as your organization grows. Follow @Profit_Sherpa on Instagram for daily tips and motivation for entrepreneurs.