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Frazzled over taxes? Try these tips

By Pam Andraschko and Rebecca Higgins

February 2010

Income tax filing time often causes stress on businesses and individuals. There are actions that can be taken to make the preparation and filing less stressful. Being well prepared is the best way to ease into tax preparation. Here are some common sense tax tips:

1. Allow yourself plenty of time to collect and organize your business records. Good organization and preparation will make for accurate reporting on the tax return. Be prepared with your records and receipts when you begin to prepare the returns.

2. Good records are a must and will give you peace of mind. Include date, time, names of individuals involved, location and the business purpose when transactions and activities occur.

3. If you have local or long distance travel expenses and mileage, go to a business supply store — for less than $5 you can find business record books and mileage books. Log your travel away from your office locally and over long distances. Commuting to and from work won’t count for business miles.

4. Business tax returns are due March 15, 2010 for small businesses filing Form 1120 and Form 1120S that are on a calendar year. If your records are in disarray or incomplete, you can file for a six-month extension. If the extension is necessary it must be filed by the original due date.

5. Do not forget to file the state corporation return or an extension also.

6. To be allowed to file a return as an S-Corporation, you must elect to become an S-Corps by filing the Form 2553.

7. Be certain to fill out all of the required lines and boxes on the return. An incomplete return will cause unwanted complications.

8. Be sure to sign and date the return before you file with the revenue agencies.

9. E-filing of the return ascertains that the return goes into the revenue agency exactly how the return was prepared.

10. Retain a copy of the returns that you have filed for your records.

11. A charitable contribution to a certified Haiti Relief effort made after Jan. 11 and before March 1 can be treated as if paid on December 31, 2009.

12. You can call the Internal Revenue Service or your state’s Department of Revenue if you have questions. The revenue services are very busy at this time of year and you need to be prepared to wait your turn to speak to an individual. You will also be able to find the needed forms, instructions and publications on the IRS website, www.irs.gov.

13. You can prepare your own income tax return or you can hire a professional CPA or an enrolled agent to do so. Choose a professional preparer with whom you have a rapport, and ask about their credentials. You need to have the ability to trust and work well with them.

14. Make certain that you file your return at the correct IRS Center and the correct state center.

15. Don’t panic! Carefully review your return before sending.

Pam Andraschko, EA and Rebecca Higgins, EA are professional tax preparers who have been in the business over 20 years. They can be contacted at 703-865-7788.

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