4 Key Documents Your Tax Preparer Needs From You
4 Key Documents Your Tax Preparer Needs From You
It’s time to discuss one of the most common questions tax preparers get from clients: What documents do you need from me to file my taxes? Many of us have wondered this before and can use a gentle reminder, or we’re approaching a time when we’ll need to know. After all, no one wants to go get their taxes done and not have all of the necessary information at hand.
Before we start, just a quick reminder to make sure you choose a tax preparer who specializes in small businesses. For more information about doing this, please check out this post.
Below is a list of items you should provide to your tax accountant:
#1: Your Annual Tax Documents
When we say annual tax documents, we’re referring to 1099 and 1098 forms, including interest and dividend statements. Companies (i.e., employers, financial institutions, healthcare companies) are required to get their annual tax documents to you by January 31st. As they arrive, put them in a folder on your computer so you know where they all are.
#2: Your Profit and Loss Statement
The person who prepares your tax returns will need to know what your company’s income and expenses were for the year. This information is readily available in your profit and loss (P&L) statement so be sure to supply this important document too. (If you’re unsure what a P&L statement is, refer to this post.)
#3: Your Bank and Credit Card Statements
While it isn’t necessary to give your bank and credit card statements to your tax preparer, it’s a good idea to hold on to this information so you can check dates and expense amounts for your preparer as needed (especially large payments and purchases). And keep them organized so it’s easy to find what you need it.
#4: Your Big-Ticket Receipts and Bills
The IRS frowns upon tax deductions without proper documentation so be sure to save receipts, bills, and canceled checks. If you’re unsure, keep it and ask your tax professional.
After your tax return has been filed, remember to hold on to all of these documents. For how long? That depends. When it comes to bank and credit card statements, canceled checks, and bills, keep them for at least three years. Stock reports and pension plan information, on the other hand, should be kept for a minimum of four years. For more information on how long to keep certain documents, refer to the following IRS website: https://www.irs.gov/pub/irs-pdf/p583.pdf
A Final Word From Tuesday Brooks Founder of AJOY
It goes without saying that keeping all of your documents organized throughout the year will make preparing your tax return much easier. So definitely keep this in mind and strive to do it! For even more information about all of this, visit IRS.gov and search Publication 583: Starting a Business and Keeping Records. Until next time!
