What to Bring with You for Your Tax Appointment
W-2s - Be sure you have a W-2 for each job you worked at during the year. The W-2s are mailed out by employers at the end of January and you should receive it by early February.
Form 1099-INT & Form 1099-DIV - These forms are issued for each account that pays you interest or dividends.
Other 1099s - Real estate sales are listed on Form 1099-S. Stock sales are listed on Form 1099-B. Foreclosures are listed on Form 1099-A. Social Security is listed on Form 1099-SSA. Unemployment, state tax refunds and gambling winnings are also reported on Forms 1099.
Form 1098 - This form is used to report interest you paid on your mortgage. Commercial lenders must use this form but private lenders do not. If you have a private lender, you will need your payment book or a statement from your lender.
Purchase or Refinance Paperwork - If you bought a house or refinanced one, you will need the settlement or escrow statement. If you sold property, you will need the sale and original purchase information.
Stock Sales - If you sold stock during the year, you will need the original cost. Be sure to have the "buy" slip for each stock sold. If it is a mutual fund, then you will need the year end statement for each year of ownership, unless the company sends you a breakdown of the average cost per share.
Business Purchases - If you purchased new equipment, including a vehicle, for your job or business, you will need the contracts or receipts.
Set an appointment with your Enrolled Agent now to make sure you have tax season under control.
Six Reasons to E-file Your Taxes
Thinking about e-filing your tax return this year? Here are six solid reasons to e-file from the National Association of Enrolled Agents.
Reason #1: Accuracy
Electronically filed tax returns are more likely to be accepted as filed than paper ones due to various computer checks conducted prior to the return's transmission. Errors are usually caught and corrected within 24 hours.
Reason #2: Faster Refund
Refunds on electronically filed returns are generally disbursed within two to three weeks, even faster if they are directly deposited into a bank account.
Reason #3: E-file Now and Pay Later
A "balance due" return -- where the taxpayer owes money -- may also be electronically filed. Payment should be mailed separately, along with Form 1040V. Since payment isn't due until April 16, (April 15 is a Sunday in 2001) you may e-file early and make a "last minute" payment.
Reason #4: Saves Time
In many states, both Federal and State returns can be sent simultaneously.
Reason #5: Guaranteed Delivery
Receipt of e-filed taxes is acknowledged within 48 hours, so you don't have to worry about your tax return being lost in the mail or otherwise going astray.
Reason #6: More Forms Accepted
E-filing can be used to file more complex as well as simple tax returns. E-filing is not just for 1040EZ and 1040A tax returns. The IRS has made great strides in expanding the number of forms that can be accepted.
Five questions to ask when shopping for a tax professional
By now you may have your W-2s. What's the next step? Finding the right preparer. Remember, not all tax preparers are created equal, so when shopping around ask yourself a few important questions.
1. What kind of training does the tax preparer have?
Enrolled Agents (EAs), Certified Public Accountants (CPAs), attorneys, commercial store front firms and seasonal tax preparers are a few popular choices for tax preparation. Only EAs, CPAs and attorneys can represent taxpayers before the IRS if necessary. EAs, who specialize in taxation, are the only group who obtain their authority to practice directly from the U.S. government.
2. What are your needs?
Do you have a complex return that requires special attention? Haven't filed in a while? Enrolled Agents can appear in place of a taxpayer before the Internal Revenue Service if necessary. Enrolled Agents prepare millions of tax returns each year. They can prepare returns for individuals, partnerships, corporations, estates and trusts or any entity with tax reporting requirements.
3. Does the tax preparer complete continuing professional education?
Members of the National Association of Enrolled Agents are required to complete 30 hours of continuing professional education each year in order to maintain membership. This surpasses the IRS requirement of 24 hours per year. This continuing education ensures that EAs keep abreast of changing tax laws and regulations. In addition, many EAs can offer help in other areas, such as IRS representation, financial planning, estate and trust services, small business advising and more.
4. Can the tax preparer offer references?
Reputable tax professionals will be glad to offer references. Be suspicious of those that do not. In addition, preparers that carry certain designations, such as EAs, are subject to rigorous background checks before they receive their designations.
5. Is the tax preparer bound by any ethical standards?
Enrolled Agents are required to abide by U.S. Treasury Department Circular 230. EAs found to be in violation of the provisions contained in it may be suspended or disbarred.
• Call NAEA's toll-free referral line at (800) 434-4339 or log onto NAEA's website to find a qualified Enrolled Agent in your area who can assist you with tax planning, preparing tax returns or resolving a problem with the IRS.
• Please contact this office for details and assistance with any or all of the above. We can guide you and relieve the tedious attention to detail so you can do what you do best.
Source: NAEA - National Association of Enrolled Agents
No comments:
Post a Comment