Tips for smoothing the way for your tax return filing

The tax filing deadline of March 15 for corporations and April 15 for individuals, partnerships and trusts is fast approaching. In order to make your life and your accountant’s life easier, here are some tips to facilitate the preparation.

What can I do in February?

Begin to gather your tax information.

Employers need to send their employees their W-2 forms and 1099 forms by January 31. Investment firms start sending out their form 1099s around this time also. Put these documents in a folder to send to your accountant.

Look through these documents carefully to be sure that income and withholding amounts look correct. Look through your investment statements to see that you have cost basis for any sales made during the year. If the cost basis is missing, start to gather that information now.

Your mortgage company will send a form 1098 listing the interest expense paid and the principal balance at the end of the year. This is typically the largest deduction for an individual taxpayer.

Meet with your accountant now. In February, he or she will have more availability than in March and April and can meet with you to discuss your tax return, to plan for the current tax year, and to review any changes or significant transactions.

You can also ask your accountant what is the best way for you to send him the information you are gathering. For example, my firm, Kaufman Rossin, has a secure portal that our clients can post their documents to as they receive them. We then organize the documents and prepare the return or part of the return when we have a sufficient amount of information.

Other accountants may want you to send the information only when all the information is available.

Business owners can make a New Year’s resolution to gather addresses and social security numbers or federal identification numbers for all independent contractors paid during the year to prevent scrambling for this information next January. Technically, you should not release a check to an individual without this information.

What can I do as the deadline gets closer?

You have until April 15 to fund your IRA contribution for the prior year. Start setting aside money to maximize your contribution and save the proof of the contribution for your accountant.

Gather work-related receipts in a format that is easy to submit to your accountant. Preparing a summary in Microsoft Excel, in QuickBooks, or simply in a legible list with detailed supporting documents will save your accountant time and save you money.

Typical work-related deductions are: computers, furniture and fixtures, tools, advertising, car expenses, utilities, cell phone and professional fees. List all of your potential expenses and work with your accountant to determine their deductibility. Documenting the information is the key.

Gather up your receipts and records documenting your charitable donations.

Gather proof of purchase for energy-efficient goods purchased during the year. There are many credits available that you should discuss with your accountant.

Business owners should check to see if they qualify for tax credits for 2013. Gather the necessary documentation for these credits now.

Remember, the more information you can gather in advance and the earlier you start meeting with your accountant, the easier your 2013 tax filing will be.

Lisa Kahn Grossman is an associate principal in the Entrepreneurial Services department of Kaufman Rossin. She works with entrepreneurs, high-net worth individuals, and nonprofits. She is a certified QuickBooks ProAdvisor, a licensed Certified Public Accountant in the State of Florida, and a member of both the American Institute of Certified Public Accountants and Florida Institute of Certified Public Accountants.

Read about tax return filing tips at bizjournals.com/southflorida.

_____

Lisa K. Grossman, CPA, is an associate principal at Kaufman Rossin, and a leader in the firm’s QuickBooks consulting practice. Lisa is a Certified Public Accountant in the state of Florida. Kaufman Rossin is one of the top CPA firms in the country. Lisa can be reached at lgrossman@kaufmanrossin.com.