NewsUSA Technology is a part of our everyday lives, affecting even how we file our taxes. With the IRS moving toward digital filing, it is easy to rely too heavily on computers to properly file and store important tax documents. People need to be reminded, in this age of computer files, that tangible files are king when it comes to taxes. And that goes for tax preparation as well.
Most people believe that their reliance on computers means less reliance on paper receipts.
For example, most brokerage houses do not keep records of the price you paid for a particular stock. To avoid frustration when preparing your taxes, be sure to keep hard copies of this information yourself. Amassing a huge pile of receipts over a year's time. When it comes time to gather your tax information, this system will make it much easier to identify old receipts. Relying on a tax software program to save each year's return.