Posts Tagged ‘extension’

You filed for an extension of your individual tax return in the spring but now it is time to face the task that you have been avoiding.  I am talking about getting those taxes done!  I know it is only July and the return is extended until October but the longer you wait the harder it will be to get started.

Here are some pointers to get you motivated whether you are preparing the return yourself or you are hiring a professional tax preparer.

1)      Start with your prior year tax return as a reference point.  Pull that 2008 tax return out of the filing cabinet and all the supporting documents.  Then pull out of the cabinet the file labeled “2009 taxes” and compare the 2009 to the 2008 documentation to compose an open item/missing list. 

2)       Don’t panic if you are missing several items!  It is easy to get a lot of the information on line.  Let’s say you are missing Form 1098 Home Mortgage Interest.  Most mortgage companies have that information available on line.

3)      Set a deadline to acquire all the missing information no later than August 15^th.

4)      Now think about any changes that took place in your life during 2009.  Do you have a new dependent in your family?  Did you start a new job?  Did you acquire a new rental property? Did you move?  These new situations may have tax implications so you should gather all the pertinent information and do some research or bring this new information to your tax appointment.

No more excuses…You have gathered all the information so it is time to tackle the tax return yourself or visit your tax preparer.  Do not wait until October 12^th to get started!!!  You will not be able to file a complete and accurate tax return at that point.  Also you will probably miss deductions and tax credits.  And last but not least, if you are hiring a professional tax preparer, remember that he can only do a good job if you give him all the information and enough time to evaluate your situation and process your tax return.

I have already had quite the morning.  My delicious protein smoothie spilled ALL OVER my car while driving in this morning.  REALLY?  That is how my day is going to start?  When are the car makers going to figure this out? MAKE DEEPER CUP HOLDERS!  I’m talking to Ford, GMC, Toyota – all car makers.  Do you not drive in your vehicles?  Do you not use the cup holders?  I know this isn’t in anyway related to accounting, but I thought I had to throw it out there.

So now that I’m starving, I’m eating an apple I packed in my lunch and counting on Paul bringing in Froggie’s doughnuts like he always does on April 15^th.  The Polito family swears by these doughnuts.  Forget the diet for one day, I’m hungry.  The good thing is this day can only get better from here.  The partners are taking us out to a nice dinner tonight so at least I know it will end well.

Another tax season under the belt, the deadline has finally come.  It’s April 15^th and I hope you have your tax returns or extensions filed.  Failure to file on time is a 5% penalty per month (maximum of 25%).  Keep in mind the extension is only for filing your tax return, NOT an extension to pay your tax (more penalties for not paying on time).  If you have a tax liability and do not pay the tax by TODAY, you will start racking up the interest and penalties.

What are we going to do?  Take some well deserved time off.  Our offices will be closed through Monday, April 19^th.  We won’t be answering phone calls or replying to e-mails.  Don’t take it personally; we just need to catch up on sleep and family time.  We will be back to work on Tuesday April 20^th.