Making Finances Simple. Changing Lives.
Best Practices When Dealing With Taxes
We believe the few big mistakes you make in life will affect you much more than the many little ones. We have all heard the quotes “it doesn't pay to be penny wise and pound foolish”...or “don’t go tripping over dollars to save pennies”. I couldn't agree more. So here are some tips that will help you avoid the BIG mistakes.....
Don’t Run From The IRS
I know the IRS is intimidating. But avoiding them won’t solve any problems. The IRS is surprisingly accommodating to those who work with them. If you keep communication open with the IRS, they will generally work with you on any issue.
“The IRS is surprisingly accommodating to those who work with them.”
This means filing your tax returns on time. It also means responding to notices from the IRS in a timely manner. Most notices are not as scary as they seem. IRS notices are usually just cross‐checking information. If you ever have a question on a notice you receive from the IRS, contact me and I will be happy to review it with you at no cost.
Be Careful of “Red Flags”
There are certain deductions the IRS “red flags” as they are commonly misused by tax filers. Most are business expenses such as the home office deduction and classifying personal expenses (meals, entertainment, travel, etc.) as business expenses. Keep good records and you will have no problem responding effectively to any IRS inquiries!
Get A Professional Review of Your Taxes
I am not saying it is a bad idea to prepare your own taxes. I think “off‐the‐shelf” software packages have their place for some people. But, I have also seen HUGE mistakes made with self‐preparation. It never hurts to have a professional review your tax return once every few years. Contact me to get your tax return reviewed, I’ll be happy to do so at no cost!
Follow these simple practices & lower the stress in your life!
Comments are closed.