Here are several ways to make sure that your tax return is prepared and filed as quickly (and as accurately) as possible.
• Keep tax documents in one place. Missing tax documents are one of the biggest reasons that filing a tax return gets delayed! If you receive documents via both physical mail and e-mail, it’s even more important that you have one place to store all your documents once you receive them.
• Organize your tax documents by type. To help make filing your tax return as easy as possible, sort your tax documents in tax return order. Glance through last year’s tax return and create a folder for each section including income, business and rental information, adjustments to income, itemized deductions, tax credit information, and a miscellaneous bucket.
• Create list of special events from the previous year. You receive a Form W-2 from your employer every year. If you’re in business, you probably receive a Form 1099 from certain clients each year. But certain tax documents you won’t see each year. Selling a home doesn’t happen every year for most people. Likewise with getting married (or divorced) or sending a kid to college. So create a list of special events that have happened over the past year, as some of these occasions may affect your taxes.
• Don’t forget your signature! You (and your spouse, if married) must sign and date your tax return if physically mailing it to the IRS. Forgetting your signature could delay the processing of your return (and potential tax refund!) by up to several months. If e-filing, don’t forget to sign Form 8879. This form authorizes the e-filing of your tax return.
• E-file your return. The IRS has struggled over the past 3 years to process paper-filed tax returns. In 2021, this backlog reach more than 20 million tax returns. You can avoid getting your physical return potentially misplaced by the IRS by e-filing. Even better, you can typically receive any refunds within one to two weeks when e-filing.
These are some of the more common reasons why the preparation and filing of your tax return may get delayed. Be prepared and file your return this year without a hitch!
One of my primary objectives is to help you achieve your financial goals through a holistic approach that is tax-efficient in my wealth management and tax resolution practice. For more information, visit www.fredtfoxiii.com.
Fred T. Fox III is a Lawton native who owns his own business.