How To Be Calm During The Tax Season
By: Yashu Varshney
Tags: Taxes, Tax Season, Accounting, Cybersecurity

It’s never easy to move on from the fun and merry season of Christmas and New Year’s break into the absolute high-stress zone of tax season. And it doesn’t matter whether your tax filings are of the basic kind or more heavy-duty — tax season is the one thing no one looks forward to. Unless you are a CPA or a tax firm of course.

While you cannot completely eliminate the stress of filing your taxes, by focusing on the below-mentioned tips, you can learn to stay calm and avoid unnecessary stress as April rolls around.

Getting Organized Is The Key

This one is a no brainer. Getting organized is the key to staying stress-free during the tax season. Few things to keep in mind;

· Don’t wait till the end — go ahead and figure out and organize the forms that you will need to file.

· Prepare your paperwork in advance, so you are not left scrabbling in the end while filling out your tax forms.

· Make sure your records are good all year through — so for example, if you know you can claim a deduction, then ensure your receipts are in order.

· If you are unsure about the paperwork or unclear on specific aspects of filing your returns, don’t leave it till the end — ask for help.

· If you have a dedicated finance department, then make sure your team is prepped and ready with the necessary documentation and accurate records.

· If your business uses independent contractors, make sure you send the appropriate forms to them.

Maintain Your Books All Year Through

One of the best things you can do for yourself is to make sure your books are maintained all throughout the year. Make sure you track every little expense, loan, purchase, earning(s) of your business. The same holds good even for those who are self-employed or run a home business.

Regardless of whether you use Microsoft Excel spreadsheets or more complex and efficient accounting software such as hosted QuickBooks, make sure you update your accounting software with all the relevant financial information for the whole year. Also, ensure that there are no errors with any of the data that is being updated into your accounting software.

Keep Track of Expenses

Carefully track and monitor your business-related expenditures for the whole year. Few quick tips;

· Make sure you file your receipts by year and month.

· To introduce more order in the filing system, subdivide your receipts into categories such as meals, gas mileage, entertainment, etc.

· It doesn’t hurt to maintain notebooks or documents that can be updated with notes on expenditures — these can be extremely handy during an audit.

Quarterly Tax Estimates

It is always a good practice to review your business numbers for every quarter.

Look at your profits, gains, and losses, as well as other important financials, so you are not hit by any unpleasant surprises when the tax season arrives. Make sure you track your profits for the whole year and then do a quarterly estimate of your upcoming taxes based on those figures.

Plan Ahead to Maximize Deductions

While there are some taxes that you simply cannot avoid, if you look through your tax filings carefully, you will be surprised at the available structures that are in place which can help you minimize your taxes.

· Carefully scan the tax rules and regulations to identify which exemptions apply to your business.

· Once you find deductions that are applicable to your business, see how best you can adjust your yearly spending to maximize those deductions.

· Are you a startup? Did you start a new business? If yes, take advantage of the deductions available to you and get a much-needed tax break.

Hire a Tax Professional or an Accountant

If you find you are constantly stressing over your business taxes each year, maybe it’s time you hired a tax specialist or an accountant. Knowing you have an expert to deal with your taxes, will definitely take the pressure off of you and help you navigate the tax season much better. Just make sure your accountant has access to all the necessary paperwork and tax information.

Learn to Stay Safe

Tax season is a great time for scammers and criminals — they know taxpayers are usually stressed and under immense pressure when filing their returns. So scamming people becomes easier for them. Here are a few safety tips to keep in mind.

1. Don’t Fall for IRS Scam Calls

Scammers often operate under the guise of pretending to be an IRS officer. They might threaten you with a law-suite or an audit or even an arrest. What you need to know, however, is that if the IRS wants to contact you, they will initiate engagement via letters before calling you.

2. Watch out for Phishing Emails

Phishing campaigns executed by cybercriminals are again a very popular IRS scam option. Make sure you have antivirus software for all your devices and be extremely careful when you come across unsolicited emails — if you don’t recognize the sender, simply delete the mail or forward them to https://www.irs.gov/privacy-disclosure/report-phishing

3. Secure your Information and Be-aware

If you receive calls where the caller says they are an IRS agent and they ask for personal information such as your social security number, don’t engage with them and go ahead and block the number.

If you want to double-check, then you can always directly contact the IRS over a number listed on the IRS website https://www.irs.gov/.

Be careful about your personal and financial data as well — don’t share information such as SSN or your banking information with anyone. Also, try and keep track of your credit report and check for irregularities on a periodic basis.

In Conclusion

Tax season is always stressful. But it doesn’t have to be painful to the point of giving you sleepless nights or affecting your health. The above-mentioned tips and suggestions can help you stay calm during the tax season while also ensuring you don’t get hit by any nasty surprises.

Know more ways to keep calm during the tax season? Share them in the comment section below.