Every year we are forewarned that this will be the worst tax filing year in the history of filing taxes and the media latches onto it and honest taxpayers get into a needless panic. Yes, it is true that in 1985, the IRS managed to misplace quite a few returns, but with the advent of electronic filing, that is unlikely to reoccur. IRS budget cuts are real which means if you need to contact them, the hold times will be longer and you may not get through. On the plus side, the IRS dot Gov website is better than ever and increasingly user-friendly. Often taxpayers can find the answer to their questions easily and the forms needed to file an accurate return are easily obtained.
There are some are changes this year that are confusing to many. I am referring to the compliance necessary due to the new Affordable Care Act. This does not affect everyone like we are led to believe and yes, it does require a new form to be filled out by the self-insured but it is not insurmountable. I will be writing more about it in a later article–so don’t get anxious! If you do find yourself overwhelmed by it, you may consider to have a professional prepare your taxes this year.
As always, this is the time of year to get yourself organized and ready to file. If you use your car for business, take a photo of the odometer so you have a record of what your mileage was at the end of the year; plan on doing it again next year. Consult your 2014 calendar to see what you did and what you spent for tax deduction purposes. Prepare for the onslaught of documents coming in the mail in the next few weeks that are necessary to file your taxes. Put an envelope, box or file folder where you keep your papers that is dedicated only for 2014 tax filing. Here’s a tip, if an envelope reads: IMPORTANT TAX DOCUMENTS, put it in your file. When you have all your documents together, you should be good to go! There’s no need to panic. Take a deep breath and know that you can get through it.
Gretchen Ross has been preparing taxes since the 1993 tax season. She and her husband, Mike Foster, CPA, run Central Coast Tax Professionals in Morro Bay. Together, they provide personalized attention to their clients. They have over 50 years of combined experience in helping people prosper. Gretchen has her BA in International Studies, has run various businesses and has been involved in many aspects of real estate from development to management.
