It is that time, crunch time, for us accountants. Monday is the tax deadline for Corporate and Personal Income Tax Returns. To help you be ready and avoid any issues, here is a quick 5 best practices you should know.

1. The requirement to file your tax return and the requirement to pay your taxes are two separate requirements resulting in 2 separate penalties for failing to meet them. Therefore, even if you cannot pay your tax bill on time, you should file your tax return on time. You can easily arrange a payment plan with the IRS. This will avoid late filing penalties.
2. You should not avoid claiming a credit or deduction that you deserve for fear of an audit. That being said, if your tax return has audit flags, you should make sure you have documented proof of your claims. Here are some of the most common audit triggers: Earned Income Credit claims, especially EIC with a Schedule C business on the same tax return. Home office deduction and auto expenses for a business on a Schedule C business return is another common one. Any Schedule C business operating at a loss, especially for multiple years.
3. Don’t underestimate the value of using a tax professional. A good tax professional will help guide you on making good decisions about claims, records and even proactive strategies.
4. E-filing your tax return reduces errors and improves processing time. If you are getting a refund, make sure to e-file your return so you get your refund in a couple of weeks instead of a few of months.
5. If you get a large refund with your tax return, instead of using it to splurge on the next car or vacation, consider contributing it to your ROTH IRA so you can turn those saved dollars into more money.

I hope you enjoyed reading my articles over the last 4 months. If you need a last-minute tax matter addressed or want to discuss your future tax needs, do not hesitate to email or call our office. (845) 504-0910 or [email protected]