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The end of the year is always marked by thinking about your taxes. However, it should be understood that the earlier you file your returns, the less worries you’ll have related to the the tax deadline.

You might be wondering about the necessary documents related to the filing process. The more information you provide to your accountant, the more streamlined the process of filing will be. There are certain documents that you need to have. Here is a list of them to make matters easier and less confusing for you.

Identification Details

Your accountant must possess the required documents that are necessary for verification of your identity. Your social security card will need to be provided and there is a requirement to know the social security numbers of your family members.

In order for you to be able to claim dependents on your tax returns, you must provide social security numbers along with the date of birth and full names of your family. There is a necessity for these details to be accurate so that the IRS doesn’t reject your application. Statistically speaking, hundreds of thousands of applications are sent back because the names and social security numbers don’t match. To make everything smoother, you can include a secondary form of identity verification such as a driver’s license or any other form of state-issued photo ID.

Most Recent Tax Return

You will need a copy of your most recent tax return. If you are working with a new accountant, this will help them better understand certain information and deductions. You can also find any discrepancies that might exist in your previous year’s tax statement.

Salary Statements

You should get a tax statement Form W-2 from your employer if you are currently working somewhere. If you don’t’ get this form before January 31, you should consult your employer to avoid any complications. Contractors and freelancers are entitled to receive Form 1099-MISC from the clients they have worked for. You should bring all such forms to your accountant so that they may include this information in the returns they file.

 Any Other Statements That Highlight Income

If you’ve accrued any other additional income during the year, you should bring this information to your accountant. Interests you get from fixed deposits, dividends from investments and welfare income are all a part of your additional income. It is recommended that you bring all of this information to your accountant for completing the details for the returns. You can also consult your tax preparer to know which information is relevant for filing.

Property Details

You can become eligible for a lot of tax deductions in regards to the real estate you own. It is recommended that you provide all information and documents to your accountant which outline the properties you own. These include the proof of paid real estate and mortgage, personal property taxes, home purchases and the interest paid on home equity loans. All of this information is relevant when it comes to filing returns.

Expenses

You may have no idea what kind of expense information will be relevant to your tax returns. It is always a good idea to save your receipts and invoices. Other proof of expenses such as charitable donations, education expenses, medical bills, IRA contributions and expenses incurred while finding a job and so much more can make a huge difference. The more expense information you provide to your accountant the better.

Come Prepared

It can get confusing when it comes to filing your returns. The process can get very frustrating. It is better to have an accountant handle your tax returns, especially if you have many avenues of revenue and expenses. Take this information to an experienced professional and you’ll be able to save yourself from the hassle and headache.

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About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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 Filing a tax return is a yearly activity undertaken as a moral and social obligation by every citizen of the country. Whether it’s a business or an individual, everyone is liable to file returns because these are the means for the government to define the amount and plan the expenditures of its citizens. It also offers a stage for the filer to claim refunds and other forms of relief from taxation as they become eligible for it. A specific amount or percentage of your income is taxed, and failing to do so can result in penalties and other severe repercussions. Check out America's Best Bookkeepers

Legal and Social Implications of Filing a Tax Return

There is generally a fixed date at the end of each financial year to file tax returns. Although, for cases that need auditing before filing, the time may be a little later. When you submit the returns, you define a legal sanction for your income to be used, however, and wherever. Similarly, the inability to pay taxes on time can result in legal action against you, depending on the due amount. However, generally, the repercussions of late payments are related to higher interest rates and penalties.

Also, it is your social duty as a citizen to file a tax return. Because you use facilities provided by the government every day, such as roads, public transportation, parks, and others, which require regular maintenance, it is in your interest to pay tax bills on time. Complying with your social duties makes you a responsible citizen of the country, and, with time, your social status improves. Check out America's Best Bookkeepers

Loans and Registrations

When you apply for a home, education, or any other type of loan, it is mandatory to show your returns to the lending institution. We all require loans from time to time, whether for business or individual purposes. Maintaining a good tax history can ensure that you are approved every time you are in need. Also, ensure filing a tax return before your VISA processing. There might be certain travel restrictions imposed by the government on people who have not filed their returns.

Registration of your immovable assets, in individual states, requires you to show tax returns, and, without it, the specific property or asset cannot be registered in your name. If you have filed your profits, the whole process can be a lot easier for you. Also, certain credit cards will not approve non-filers; therefore, if you want to have a credit card, file as soon as possible.

Filing a Tax Return for Government Tenders

For someone who has a business that involves dealing with government institutes and some private corporations, tax returns must be filed. In some cases, you may have to show the receipts for the past five years because they like to ensure that they are dealing with an individual or business who has a good track record. However, this is not a hard and fast rule, and, in some cases, you may get the tender without showing the returns. Therefore, it depends on the institution with which you are dealing. Check out America's Best Bookkeepers

Faster Refunds

Refunds in taxation work on a first-come, first-serve basis. The earlier you file your return, the sooner you will get your refund. When you are filing a tax return, you disclose everything that you have earned in that financial year. The IRS reviews your returns and, individuals who filed earlier are eligible for the reimbursements quicker than others. Filing early ensures that, if you had made a mistake, you have enough time to review it and correct it.

Therefore, there are numerous benefits to filing a tax return on time. As a responsible citizen of your country, it is your moral obligation to ensure that you do so.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers