Who comes first?

When you file your tax return with your spouse, you should always put the same person first in order to avoid any problems in subsequent tax years.  You may receive a failure to file notice from Uncle Sam. Be careful to check your social security number and that it matches your card.

There have been cases where a return has been filed electronically and the taxpayer discovers that someone else has filed already. This happens when they fail to review the social security number before hitting send. The really sad part is the person who made the mistake in the first place doesn’t realize they haven’t yet filed.

Be sure to notify the IRS if your address changes too so they can forward any correspondence regarding your filings.

Nonresident or resident aliens would use their ITIN (individual tax identification number) to file their tax returns wherever a social security number is asked for on the forms.

Income Tax Compliance and Planning

It is important to use good tax resources to be sure that you have the latest information about tax compliance and planning. As I found out when I used an old form rather than the current one. I discovered that the rates had changed and the tax would have been less if I used a form published more recently. Another good reason to do away with paper forms completely. Digital forms are a good choice. They are more likely to be updated with current rates.

Tax Resources

Why you need a Professional Tax Preparer

When you are looking for tax information don’t forget to seek the advice of your CPA and/or Enrolled Agent. Sometimes you can post your questions directly to their website. They may feature your question on their blog.

Be sure to check out my website at www.etaxwiz.com

The reason you seek the advice of a competent professional is to make informed decisions about the tax treatment of your transactions, to learn if you qualify for the latest credits or deductions and if so where to claim them on your return.

Another reason is to save money either now or in the future.

And yet another reason is to avoid costly tax audits by having the return prepared correctly the first time.

And finally, it shows you are managing your business in a business like manner. It will be less likely to be classed as a hobby and render losses non-deductible.