Vital Particulars Your Tax Accountant Needs to Prepare Tax Returns

Posted on: 22 October 2020

Now that the tax season is around the corner, it's crucial to prepare adequately to avoid having issues with the government. Usually, tax accountants and other professionals recommend that you get the returns filed early so you can avoid the rush when the deadline approaches. But before a tax accountant or preparer can file the returns, they will need certain documents to get all the necessary information they need for the job. Knowing the documents they'll need will help you prepare and present them in time to avoid delays. Some of these documents are outlined below.

Identification details

Whether you want a tax accountant to file your personal or company's tax returns, you will need to provide identification information. These are the details the expert can use to prove you are who you are. For personal needs, you will need to provide your full names and date of birth. The second form of identification that's needed is the details of your state's ID card or driver's license. For the company, you will provide the actual names you use to run the business. If you do not give the actual information, the tax department will have no option but to send back the tax return — the identification details must match.

Recent tax return copy

Even if you do not qualify to get the same write-offs or tax deductions as you did during the previous year, it is crucial to give your tax accountant the previous year's return document. This document will allow them to access crucial information they need to calculate some deductions. If you are not working with the same tax preparer you hired the previous year, you should consider asking if the document has any discrepancies. If there are some issues, then the new accountant should offer the best solution to fix things.

Details of the current expenses

If you'd like to get credits and deductions, you will need to provide documentation that proves your expenditures. This may include invoices and receipts for expenses such as education costs, mileage logs, self-employment expenses, medical bills, etc. Be sure to provide all the documentation so the accountant can do a thorough job.

For your business, you will need documentation for the business vehicle mileage, marketing costs, computer, and software related expenses. You will also need travel expenses, insurance premiums, depreciated assets, rental bills, subcontractors' payments, utilities, payroll costs, credit cards, and bank interest costs, etc. Remember that your personal or company's expenses will differ from what others offer, so do not shy away from including all the expenses.

Reach out to reputable accounting services to learn more.

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Accountancy: Counting Together

Hello, my name is Stuart and I live in Sydney, Australia and this is my accountancy blog. I have always loved numbers. When I was a little kid, my granddad would sit me on his knee and make me recall the times tables. I also remember counting all the money in my piggy bank and my dad explaining the concept of compound interest to me. Although I didn't enter the accountancy trade, I still keep in close contact with the industry and like to keep up with what is going on. I hope you find this blog very useful and that it helps you to save a little money one way or another!

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