Filing taxes can be a pain for many people and companies in this country. Oftentimes people will put off doing taxes to the last minute for a variety of reasons. In some cases, people put off doing taxes for years. When this happens, it can be scary when you recognize taxes need to be filed. Whether you come to this realization on your own or the IRS contacts you regarding your late or non-filing status. Completing taxes that have not been filed for years can be an overwhelming situation.

If you are in this situation the first thing you should do is contact a local tax professional and strategize your next moves, since there are steps that need to be taken to get your tax situation in order. Below we discuss a few of these steps (disclaimer: do not read this information below and assume this is all you need to do since these are just basic steps, you need to contact a tax professional).

Basic Steps:

Compile all important tax paperwork: This will include all W-2’s and 1099’s for the years you did not file, along with any receipts or documents to support any deductions or credits you will claim. If you do not have your past W-2 or 1099, contact your current or past employer for copies of this information.

Find any missing documents: If you have missing paperwork or tax documents that cannot be found, you can send the IRS a request to send your transcripts of your most recent W-2’s, 1098, and 1099, along with other important tax information from the years you missed filing taxes. This is IRS Form 4506 which you can request. 

Use appropriate forms to file past taxes: Most people e-file their tax returns for the current year or two previous years. For people filing over two years back, you need to download the prior year tax forms.  

Submit your tax forms: After you have completed your tax forms and preferably consulted a tax professional, your next step is to submit your forms to the IRS. Once the IRS has your submission it may take them up to six weeks to process your returns. If you owe money you will receive a bill from the IRS with the exact among due with interest charges included.   

These are just a few of the steps involved when filing a late return over 2 years. As mentioned above you should consult a tax professional to assist you in filing these late returns. For one, with a professional on your side we can assure the taxes are filed correctly and help you obtain any past deductions you are due. We are also experienced dealing with situations that may save you money and help limit how much you owe the IRS (if you do owe money). For additional information on filing past tax returns refer to the IRS website on tax topics.

You can also find more information on our resource center page or by contacting the Baton Rouge Tax Doctor or experienced financial and tax team.

Now that tax season is over, except for those people and companies that filed extensions, we begin preparing for the new tax year. One of the main questions we always receive is, how can I (we) avoid paying more taxes than necessary?

A lot of people think that tax “loopholes” were only made to be applied by the wealthy, but there are several ways all taxpayers can legitimately benefit from the tax laws. There are some laws that may not apply to you depending on your particular situation, but the law demands that no one is required to pay more taxes than required.

Below we share many of these underutilized tax-cutting strategies.

• You can defer tax liability by making wise investment decisions and by contributing additional money to your retirement plan.
• You can invest your money in a way to produce income that is taxed at a more favorable rate, which if done correctly, may be exempt from state or federal income taxes.
• You can shift deductions from one tax year to another year in order to get the most benefit from those deductions.
• You can shift income from one tax year to another year in order to have that income taxed at lower rates.
• You can split your income among family members or legal entities in order to get the income taxed in lower tax brackets, but with this strategy you must be aware of the “kiddie tax”.
• You can manage your estate to receive tax deductions for expenditures you pay for things you enjoy, like a vacation home.

Many of the strategies discussed above should be made in consultation with a financial advisor since expertise in these areas are needed to maximize your tax-cutting strategies. Contact Assurance Tax & Accounting Group, and let our experts give you the help you need. We are just a phone call away. Our tax and financial planning professionals are waiting to assist you in avoiding paying more taxes than are necessary.

As we come to the end of the tax filing deadline on Tuesday, April 17, 2018, there are still people that need to file and claim as many deductions as possible. Usually people that wait closer to the deadline to file are expecting to pay taxes as opposed to getting a tax refund. People that expect a tax refund usually file early to get their money, while potential tax payers are usually procrastinators.

If you are one of these people waiting closer to the deadline because you believe you will have to pay taxes, we have prepared a tax cutting checklist to help you get as many deductions as possible. There are many deductions people may not know about that can be claimed and you never want to leave money on the table. It is always best to consult a tax professional to ensure you are getting your maximum deductions and the below checklist will help. 

Below is a checklist of tax deductions that are often overlooked or missed. Some of the deductions listed below have caps, speak with your tax professional for more information.

Business Deductions

• Business use of your car
• Gifts to clients
• Yearend bonuses to employees.

Home Deductions

• Exclusion of up to $250,000 of profit in a home sale for singles; up to $500,000 for marrieds.
• Home improvements
• Mortgage points paid on new home loans

Work Deductions

• Job counseling fees.
• Job related moving expenses.
• Resume preparation costs.

The checklist above are just a few deductions you may be eligible for to claim and lower your tax payment and may even cause you to get a refund. For the full tax cutting checklist click here to download the free document. Every situation is different, and we encourage you to consult a tax professional to make sure you get the maximum deductions you deserve. Check out our tax preparation checklist that helps you get ready to meet with your tax professional with the correct documents.  

Assurance Tax and Accounting Group has trained professionals waiting to help you with all your accounting, tax preparation, and financial planning needs. Give us a call today at (225) 757-5518 or send us an email so one of our experienced tax professionals can get you the assistance you need.