Tax
season is one of the most challenging seasons a financial expert will encounter
while working on tax returns for clients. To relieve the stress and be
motivated, I have made a list of things I usually do; these might be helpful
for you as well.
This
will allow your brain to breathe. It can also prevent burn out moments caused
by the stressful tax season. This can also increase your productivity because
you always start with a fresh and clearer mind.
2.
Evaluate staffing needs:
Check
last year’s staffing plan. Try to look at the loopholes and act on it before
the tax season arrives. Check on the areas that need an additional workforce.
Hire people who are already experts so that there is only minimal training
required.
3.
Appreciate your team’s hard work:
Everyone
is experiencing the stress of the tax season. Appreciating your employees will
boost their morale, which can increase productivity.
4.
Considerations for this year’s and next year’s tax filing season:
For the
most part, 2019 will be very similar to 2018 as far as tax filing is concerned,
though 2020 is going to stand out as being unique. The best way to prepare for
2020 is to keep all of your loan and grant documentation organized. This
includes:
● The
SBA EIDL Advance and Loan programs.
●
Employee Retention Tax Credit.
● Families First Coronavirus ResponseAct gives businesses in the US with
fewer than 500 employees funds to provide employees with paid leave to take
care of themselves or for family members.
5.
Protect yourself from tax scams and fraud:
Tax
season can definitely brew up some stress for many. Amongst that stress, we see
a ton of people falling victim to tax scams and fraud. As tax day gets closer,
many receive phishing calls claiming to be the IRS demanding money. It’s
important not to get into these scams. The IRS will never reach out over the
phone. Never share your sensitive tax information over the phone or through
email. Always look for direct mail – and still, be cautious before moving
forward. If, by chance, you fall victim to a tax scam, immediately report it to
the IRS and get in contact with the Treasury Inspector General Administration (TIGTA).
6.
Hire a professional:
One of
the many ways you can stay stress-free during the tax season is by having
someone else do it for you. You can hire a professional to deal with tax
return preparation and relevant work or even opt for tax
processing software. These will significantly reduce--if not eliminate--your
existing tax-related work. If you would prefer to do your taxes on your own,
separating them into smaller chunks can make things less overwhelming.
Switch
from paper to digital records, as these records are far easier to modify,
store, and maintain. Stay on top of tax laws, changes and advantages to ensure
that you are doing them correctly and, if you need to, do not hesitate to
peruse the IRS website or call toll-free numbers to get answers to your
questions.
7. Deductions
and withholding:
● If
you applied for unemployment, be prepared to pay income tax. Most states, if
not all, give you the option to withhold taxes from your unemployment payments.
Choosing to withhold is the easiest way to avoid a bad surprise.
● I
would advise anyone who owes taxes to contact the tax authority they owe to,
whether at the Federal (IRS) or state level, and explain their financial
situation. Tax departments are not always viewed in the best light, but they
are often willing to offer payment plans or renegotiate existing plans. You may
even be able to settle for less.
Being
calm during outsourcing tax preparation is entirely doable, with the right
preparation and organization in mind. If you are struggling for time, you can
ask for an extension, so that you have more time to gather documents and file
taxes.
