Are You Ready for Tax Season?

Avoid being one the 20% of tax filers who waits until the last minute to file a return. Hurried last minute tax preparation can lead to costly mistakes and missed deductions. The following tips and resources will help you start tax season on the right foot. Whether you hire a professional tax service, use software, file online or via mail, it is important to make sure you have the latest information on tax reform, common mistakes and scams.

• Get the latest information on U.S. tax reform. The IRS continues to issue guidance on recent tax reform legislation. The latest information is available at the IRS tax reform newsroom. It is important to understand how tax reform may impact your filing. If you have questions, it may be beneficial to consult a tax professional.
• Watch for tax scams. Tax scams come in all shapes and sizes. Each year the IRS prepares a “Dirty Dozen” list of tax scams. For the fifth year in a row identity theft tops the list. If you fear you may be a victim of identity theft and you have an IDShield membership call (800) 806-3991. If you do not yet have an IDShield membership visit www.idshield.com to learn more. Click here to find out what tops the IRS list this year. The Canada Revenue Agency also offers resources for detecting tax scams and fraud. Click here to access the Canada Revenue Agency website. 
• Don’t procrastinate. In the U.S. taxes are due on April 18th. In Canada returns are due by April 30th. The IRS does allow a six-month filing extension until October 17th. You must file Form 4868 before the April 18th deadline to request an extension. If you owe money, you will be subject to late fees if the full amount is not paid by April 18th. The Canadian Revenue Agency does not allow for late filing; however, if you cannot make your full payment you can avoid late-filing penalties if you file your return before the April 30th deadline.
• Keep your tax return and other financial documents safe. Whether you file online or use a professional you must keep your personal information safe. Tax returns are a goldmine for identity thieves. Never store sensitive information on public computers or transmit financial information through unsecured WiFi. Also, keep paper copies of your return in a safe location.
• Back up your filing with documentation. Underpaying your taxes could subject you to costly fines and penalties. You must be able to show proof of your deductions in the event of an audit. Save copies of your return as well as receipts and other documents you use to prepare your taxes. Keep the documents in a safe and accessible location. 
• Select your preparer carefully. There are many wonderful tax professionals who can help you file accurate and timely returns. Tax preparation services can be invaluable to businesses and individuals with complex personal finances. If you decide to utilize a professional tax preparer find someone you can trust and always make sure they sign your return. Taking a little extra time to vet your preparer before you hire them could save you a great deal of trouble. The IRS has a webpage to help you select a preparer and check his or her credentials.