Few people probably look forward to tax time. Whether you’re a do-it-yourselfer or have your tax returns prepared by a trusted professional, it all starts with paperwork. Although we may strive to live paperless, paper is indeed the key ingredient when it comes to tax returns. It sure is frustrating to learn at the last minute that you need such and such document to complete your tax file, and you have no idea where to find it. Organizing tax-related paperwork throughout the year will eliminate that last-minute struggle.
Keeping careful records
Everyone has specific circumstances that influence which documents are necessary to support a tax return. A personal return requires different papers than one for a business. In either case, keeping careful records is essential, especially in the event of an audit.
This IRS-produced checklist is a good resource to keep handy. As statements, receipts and paperwork accumulate all year long, you will know what to keep making paperwork gathering a snap come tax time.
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