Don't Gamble with Your Taxes!

There is an element of risk that everyone should take. People would never make use of opportunities if they don't encourage risk in their life. However, there are ways to gauge your level of risk and ways to determine where and how to take risks.

The do's

#1 If you are not able to file your tax return by the due date, make sure you fill out an extension. This could save you hundreds and possibly thousands of dollars if you have a balance due.

#2 When you file your tax return, be sure to e-file and request a direct deposit if you are receiving a refund as that is the quickest way to get your money deposited. #3 Always double check your routing and account number because it's nearly impossible to retrieve your refund if the money is deposited into the wrong account.

#4 If you had an unexpected surprise and owe taxes this year, be sure to consult with your tax adviser as to how to avoid a balance due in the future.

#5 As much as it might be annoying to have extra paperwork laying around, always keep at least 3 years worth of tax files available (including supporting documentation) so that in the case you're audited you can back up everything you claimed.

The don'ts

1) If you expect to receive refunds, please file every year because for some people that let it go beyond the statute of limitations, they lose their right to claim the refunds. The IRS statute of limitations is 3 years from the filing due date of the return.

2) Don't report false information OR information that you cannot prove. It's better to be safe than sorry. Even if you did incur the expenses you claimed and they are allowable deductions, be 100% sure you can claim them and support them with receipts and logs/ bank statements.

3) Claiming exempt or a high amount on your W4 withholding form may result in a higher paycheck but it creates an even bigger problem on your tax return. Paying little amounts through the year is much better than a large tax bill all at once.

4) Yes, IRS and state tax notices are scary and we all feel the pounding in our chest when we receive one, but don't ignore them. The worst thing to do is ignore them because at some point, the fines and penalties will accrue too much and you'll be deeper in the hole. Just take the notice to an expert as soon as you receive it and let them help you.

5) Try not to wait until the last minute to file your taxes. Instead be proactive and gather everything that you can by the end of January and make your appointment by mid-February. This will ensure that you have enough time to obtain the last pieces of information you need to file a precise and accurate tax return without the stress and pressure of waiting until the last minute.

"See, one of the things you have to remember is that we started off with a very idealistic perspective-that doing something with the highest quality, doing it right the first time, would really be cheaper than having to go back and do it again." - Steve Jobs

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