Smart women will take this piece of advice to heart: approximately one in every 99 tax returns is flagged for an audit by the IRS. This week, we’re following up on last week’s post about the value of a CPA for executive women and talking about how smart women can get the call rolling this tax season. Hasty tax preparation can mean audit flags that we didn’t even know were there. Get moving, get them filed, and relax because you know you did them the right way!
Rule #1: Take your time.
As we just mentioned, being hasty and last minute can create flags that will cause you more of a headache in the long run. Set aside a weekday evening to get your paperwork in order. This way, you don’t have to take a weekend day away from your family. Get everything organized ahead of time and then schedule another weekday evening for the dirty work of completing your return.
Rule #2: Don’t forget about extensions.
If you think even for a moment that you won’t have everything you need to file your taxes by the deadline, smart women grab an extension form. You can download one here from the IRS website. Just mail it by April 16 this year and if you’re lucky enough to get filed on time, you’re still safe and sound from potential penalties.
Rule #3: Report ALL of your income.
Many of the people who hired you might not issue you 1099s or W2s on time. Pull your pay stubs and use that information or estimate to the best of your ability. Never think for a minute that the IRS will overlook a penny you’ve made and avoid the headaches that can happen later when they come after you for additional taxes on money you forgot to declare.
www.irs.gov and peruse their extensive library of tax information (smart women bookmark this site, too!).
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