Tax Season: How to Adequately Prepare
The tax filing deadlines have shifted quite a lot in recent years. Even if your monetary situation is relatively simple, it’s still wise to ensure you’re current and doing whatever you can to lower the tax liability, regardless of when the tax season begins.
Numerous considerations must be made, such as tax forms, tax exemptions, and any changes to the tax laws. If you forget these things during the year, a tax lawyer Georgia can help.
If you want to save money on taxes, here are some tips:
Gather and Organize Your Documents
The organizer or checklist is the first step in any tax preparation process. When it comes to preparing and filing your taxes, the more information you can give about your finances and your financial situation in general, the better off you will be. Make it clear to your client that they need to finish the organizer as much as feasible.
Don’t Forget Records of Expenditure, Returns, and Payroll Reports
Working to ensure your financial documents are in order is an important part of the tax preparation process. For a minimum of three years, the IRS mandates that all business owners retain their previous tax returns. Also, keep the supporting documentation that substantiates any exclusions or credits so your tax attorney Georgia can better prepare your files.
To produce your financial accounts properly and to avoid any surprises during an audit, good recordkeeping is a need. In terms of how far back an IRS audit can go, there is no time restriction.
Talk to your Atlanta tax attorney about record-keeping best practices. Even though three years, it is preferable to be safe than sorry. Keep all of your records for future proof of income or deductions, and don’t throw anything away.
Record-keeping for your business should cover anything from deposit slips to credit card bills. A minimum of three years should elapse from the date of filing taxes before a small business owner discards its gross receipts.
Learn About Typical Tax Deductions and Changes to Regulations
There were a lot of tax adjustments in 2020 because of the epidemic. Several tax regulations were altered as a result of the federal revisions, which a tax attorney Atlanta will find out about.
Additional tax breaks for small business owners were also added as a result of this legislation. Before the epidemic, many small-business owners worked from home.
Make sure you’re aware of any regulatory changes that may affect your tax deductions. The tax deduction for the home office is available.
You may be able to deduct some of your utilities, rent, mortgage, as well as repairs off your taxes. You can also deduct the expense of beginning your firm if it’s your first year in business.
Pay Attention to Tax Due Dates and Penalties
All tax deadlines and penalties have been altered due to the pandemic. If you have any upcoming deadlines, be aware of them. Since local and state tax deadlines, as well as fines, may differ from federal ones, it is important to familiarize yourself with the specifics of your state’s calendar.
If you miss a deadline during tax season, you may end yourself paying more over the long term because of the consequences. Keep an eye on tax deadlines with the help of the IRS.
Consider the Impact of CARES Act, PPP, COVID-19, and more
As a result of the changes brought about by 2020, tax regulations and assistance programs have been updated. To guard against the financial ramifications of Covid-19, a slew of additional regulations was enacted. Many entrepreneurs have made use of the PPP (Payroll Protection Program) financing throughout the pandemic.
That act has contributed to the ever-changing tax rules regarding these laws. Using these apps, you’ll have to understand and address the filing procedure. Your tax lawyer Atlanta will inform you that PPP loans can also be canceled if 60 percent of the money you obtained was utilized to cover employee payroll costs.
How a Tax Lawyer Can Help
The Law Office of Max Benkel has a knowledgeable team of tax experts ready to ensure your filing is correctly done. We understand the importance of getting it done right to avoid being audited. If you’re already facing an audit, or simply want to be prepared for tax season, we’ll ensure that everything is intact to help avoid penalties. Call our Atlanta tax lawyer today!
