It is no wonder so many Americans dread the April 15th tax filing deadline. The U.S. tax code already contains more words than the Bible, and hundreds of pages of new rules and regulations are often added.

It is common for many people to put off filing their taxes until the last possible minute because of so much complexity. However, taking that approach can create problems and more stress and potentially land you in hot water with the IRS. What if you cannot get it done on time? You can file for an extension, but you are still required to pay the taxes you owe plus interest. In some cases, you can also end up owing penalties too. However, filing for an extension will prevent you from getting hit with a failure to file a penalty for not filing on time if you haven’t filed for an extension. How do you know you didn’t make a mistake if you file at the last minute? There should be adequate time to double-check the information before your return is filed. It’s easy to make a mistake when rushing to meet a deadline. Your last-minute mistake could cause you to be audited.

We focus on helping people who owe $10,000 or more to the IRS or have years of unfiled tax returns, so we’ve seen our fair share of mistakes made by innocent taxpayers. Contact our firm today if you have any tax trouble or owe more than $10k to the IRS or state but can’t pay in full. We help people get their life back from the IRS. 

We recommend taking a systematic and step-by-step approach to preparing and filing your taxes. Don’t bury your head in the sand on April 15th, and hope this problem will just go away. Think baby steps as the way to solve this problem. With unpleasant and complicated tasks, breaking them down into smaller and more manageable chunks can make things easier. This approach works with dealing with your tax returns, too. This year, vow to take a step-by-step approach to your tax return. If you follow these simple steps, you could be done with your taxes before you know it.

Step 1 – Set Up a Command Center or War Room

Chances are you started receiving tax documents in early January, and you may still be receiving those documents in March. That means you need a convenient place to keep all those documents. Setting up a command center or war room in your home makes it easier to store those documents and keep them at hand. Make sure you get your documents rounded up and saved. Keeping them in a designated place is a big help in dealing with all those papers.

If you have a home scanner, take a few minutes to scan each document as it arrives. Set up a special folder on your computer or cloud storage service to hold all those documents. Those electronic copies can be invaluable if the originals are damaged or destroyed.

Step 2 – Choose A Good Tax Preparation Professional (But Use A Tax Attorney For More Complicated IRS Issues)

While they cannot make the task totally painless, tax preparation professionals make the process much easier. We do not prepare tax returns for clients. That’s not what we do. We recommend you have someone who is qualified and attends federal tax update seminars to stay current to prepare your tax return. There is that much information a tax professional has to know to prepare a proper tax return. For years, our firm has sponsored the Indiana CPA Society’s Federal Tax Update seminars. It’s a two-day seminar.

Keep in mind if you owe multiple years of taxes and have multiple years of unfiled returns, we recommend reaching out to a tax attorney who will understand your unique situation and help you with the tax relief you need. Most tax preparers aren’t trained in tax resolution, so find the right firm to help you with your case. We regularly litigate cases in U.S. Tax Court. Tax preparers don’t litigate cases. Handling a case that needs tax resolution is a completely different skill set from the skills used to prepare a tax return. We have training as attorneys in advocacy. Get the right kind of help you need.

Step 3 – Enter Your Tax Documents As You Get Them

One of the great things about technology is that you organize and file each tax document as you get it. Often you can download all your tax documents from various online services. For example, your direct deposit payroll service will give you your W2, and different vendors provide statements and 1099’s online. If the mailman brings you a 1099-INT or a W-2, you can simply scan things as they come in.

Just open each document, scan it to create an electronic backup, and log on to your favorite secure cloud storage to file your documents. Whether you get five tax documents a day or just one, entering the information now can save you time later on.

Step 4 – Review Your Documents and Final Tax Return

After you think you have all your documents organized and your tax return is ready to file, the next step is to review everything and make sure there aren’t any obvious issues. Go through the paper and electronic copies and check each one off on your tax return. If any of those documents are missing or anything is wrong, go back and enter them right away.

Step 5 – Bring It All Together

Now that the final review is complete and all the documents have been entered, it is time to bring it all together and actually file your return. Your tax prep professional should include a series of checks designed to catch common errors and point out audit flags. Be sure to ask questions and correct any problems you might find. Be sure to print off a copy of your tax return and save an electronic version to your computer.

Nothing can make filing taxes fun, and this annual chore will never be pleasant. Even so, you can make the task less “taxing” by breaking tax filing down into its component parts. Following the steps outlined above can help you deal more effectively with your tax return preparation and your final tax bill by having a carefully prepared tax return when it is filed.

OWE BACK TAXES?

Our firm focuses on tax resolution and helping people who owe the IRS or state $10,000 or more. We’ve seen taxpayers get blindsided every year by a huge tax bill. Many times falling behind your taxes leads to more and more years where taxes are owed but not paid. If that’s you, we can help. Contact our firm today to discuss your tax debt settlement option.