It is time for getting prepared for Tax season. The tax season is to start around late January 2020 and last until mid of April. April 15, the last day to file taxes, is called Tax Day. There are few steps one needs to initiate to ensure in handling the tax season and to avoid the chances of an IRS tax audit. When it comes to tax filing, every taxpayer will become anxious due to the complexity of filing their tax returns, and the need to ensure accuracy in all data to file.
Here are a few tips which help you make one fully prepared for the 2020 tax season:
Organize and figure out the forms you need
Get organized by keeping each of your income and expenses sources in a digital or printed format to avoid confusion. This will help to maximize the chances of filing the taxes accurately. There are many different tax forms based on individual type or businesses source of income and expenses. If you are unsure which form suits your financial background it is good to consult a tax professional.
Gather all your receipts
If you are organized with all your receipts and records, it will take less time for the tax preparer to process your taxes. To avoid a last minute scramble, it is essential to store all your receipts in same place throughout the year. It will help the taxpayer who wants to itemize deductions instead of claiming standard deductions. IRS also expects every taxpayer to keep record of any receipts or documents that can be shown later if IRS initiates any tax audit.
List out your personal information
Now, the time has come to take out your pencils and calculators (or a smartphone!). As a first step, list all personal details like Social Security Number along with the other information of each dependent you claim your tax preparer likely to need. If you own any kind of properties, write down such addresses. If you have bought or sold any property in the past year, note the dates you sold and bought and also the amount you originally paid and the amount you received from the sale.
Option to file for an extension
If you are not fully prepared then there is an option to seek extension of filing. Such extension is needed in a situation when a taxpayer is in a stressful life event. And you can request for an extension if you need more time to complete the tasks like preparing your documents and receipts. However, you’ll still need to estimate the tax amount you owe and pay that amount by the regular April 15 deadline.
The IRS recommends you to review your W-4 every year to add or remove any of your family members.
Keep a copy of your previous year’s return
If you are planning to find a new tax preparer for this year, then the previous year information will help them. Keeping all the records will save your time and money either you hire a tax professional or preparing by yourself. One needs to stay up-to-date as possible on the tax breaks that are available for the year 2020. The earlier you start preparing for tax season, the easier the process will be.
As the tax season for 2020 is approaching, it is the right time to get ready in preparing for the taxes. It is critically important for a tax payer to choose a reputable tax audit service provider.
IRS Audit Group is a tax audit representation service provider for all your tax dispute cases. We defend our clients by representing them in front of IRS agents. We know the taxpayers’ rights during the Tax Audit and help them to bring mutual solutions between IRS and the taxpayers. Get free consultation from one of our tax experts.
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