Tax tips for the nearing deadline
For individuals or businesses that are filing taxes, the deadline for both is nearing closer. Companies that filed on paper should have completed their forms last month, but for those using a 1099 processing service or other e-filing opportunities, taxes must be filed by April 1. For individuals, the deadline is two weeks later, April 15.
Since both are coming up, the IRS released an “IRS Offers Top 10 Tax Time Tips” report for taxpayers to make the process easier.
Among the 10 tips on filing taxes, the IRS first and foremost reminded everyone to collect all information needed, including “receipts, canceled checks and other documents that support income or deductions you will be claiming on your tax return.” These documents should have been kept throughout the year, and make producing all the correct information significantly less time-consuming if well organized. This also ensures that when reporting income on W-2 and 1099 forms, all information will be included.
There are also a number of ways to get help for filing taxes, the report said. IRS-certified volunteers, including with the Volunteer Income Tax Assistance (VITA) for those that make less than $51,000, and the Tax Counseling for the Elderly are often set up in schools and libraries with tax preparation tips and guidance. Locations can be found on the IRS website.
The website also offers e-filing – the way 80 percent of taxpayers filed their taxes last year. Combined with direct deposit.
Lastly, review and check everything. Audits generally increase in years close to a recession since more people are likely to fib on their files, and the past few years have been no different. To avoid honest mistakes, check all numbers before submitting forms.
Tab Service Company is a Chicago based company and the leading provider of 1099 processing services. As an SOC2-approved service organization, we apply industry-best practices to our approach with clients.