The 2013 tax extension deadline is less than a month away on Wednesday, October 15th. If you missed the first April 15th tax deadline and had to file an extension, you may be still procrastinating and will be rushing to make the final October 15th tax deadline. There’s no need to worry if you start preparing now. Follow these simple tips and you will be on your way to beat the tax deadline and avoid a late filing penalty.
1. Gather Your Documents – Make sure you have your documents like W-2s, 1099s, receipts for expenses, mortgage interest, and your kids’ social security numbers in front of you when you sit down to get everything together. Don’t forget charitable contributions or business expenses such as professional association fees or licensing.
2. Look Back to Last Year – Don’t forget that the spring cleaning you did last year or other expenses may lead to a nice tax deduction. Taxpayers rushing to the deadline may forget they donated to charity, had job search expenses, or unreimbursed employee expenses. Have receipts for these types of expenses with the rest of your documents.
If you’re having trouble remembering which deductions you took advantage of or need a refresher, our online client tax organizer helps all of our returning clients to see last year’s numbers and enter in the new information. These are usually uploaded to the online secure portal in December or January.
3. File Electronically – Save money and time by easily and accurately electronically filing your taxes electronically. Your information is sent securely to the IRS and you will receive email notification of receipt from the IRS. With identity theft issues more rampant than ever, you may be surprised to learn that e-filing is actually more secure than paper filing. Mail is still one of the top ways identity thieves garner your information.
4. Review Information Entered – Make sure you double-check the names and social security numbers you provide. Incorrect social security numbers will cause you to miss out on valuable tax deductions, and they could also delay processing of your return or that precious refund money you’re due.
5. Still File If You Owe – Even if you owe money, you will still need to file your taxes to avoid a late filing penalty, which is 5% of the unpaid taxes for each month your tax return is late, not to exceed 25% of unpaid taxes. Making even a small payment of what you can presently afford can reduce penalties and interest.
The IRS also created the Fresh Start Initiative to give taxpayers other options when they can’t pay all of their tax liability at tax time. Under this initiative you may be able to set up an installment agreement with the IRS and pay for your tax liability monthly.
If you have any last minute tax questions don’t hesitate to contact our Dallas CPA Firm. Gurian CPA Firm is up to date with the latest tax laws and is here to answer your tax questions so you can beat the final 2013 tax deadline.
Already filed? If you filed in April, why not get started organizing for your 2014 taxes? It’s never too early to start. And if you’d like a copy of your 2013 tax return, it’s always available on the online secure portal for your use and download.
