Published on: December 31, 2016 Last modified: February 26, 2019

When It Comes to Taxes, It Never Hurts to Plan ahead

Table of Contents
    Add a header to begin generating the table of contents

    On behalf of Silver Tax Group posted in IRS Tax Audits on Saturday, December 31, 2016.

    In today’s tax world with its complicated rules and reporting requirements, it never hurts to plan ahead. The preparation process can take time, however. More importantly, such preparation requires great care as mistakes can result in harsh tax penalties and asset seizures.

    As another year comes to a close, it is important to see what steps you can take as a Michigan taxpayer to avoid consequences. The more thorough and accurate you are in your reporting, the less likely you are going to draw unwanted attention upon yourself by tax authorities.

    Some steps you can take regarding advanced tax planning include:

    • Review major changes in your life during the prior year that could lead to various tax implications. Such changes could include marriage, divorce, having a child, or no longer being able to declare a spouse or a child as a dependent. The purchase of a new home obviously can impact the deductions you take as well.
    • Organize your tax-related documentation including W-2 and 1099 forms documenting your income and receipts that verify deductible expenses. Putting such documents together in a folder for easy access can make life much easier for you in the event an audit arises.
    • Pay particular attention to IRA contributions. Though the deadline for most taxable deductions will end with the coming of the New Year, you can continue making contributions to your IRA that may impact your 2016 taxes right up to the April filing date.

    Talk to a tax attorney

    These are just some of the benefits of tax planning. A seasoned tax attorney could likely have a number of ideas as well to reduce the number of headaches that can occur because of lack of preparation.

    Share The Knowledge! 😊

    Share on linkedin
    LinkedIn
    Share on twitter
    Twitter
    Share on facebook
    Facebook
    Share on reddit
    Reddit
    Share on whatsapp
    WhatsApp
    Share on email
    Email
    Share on print
    Print

    Get More Knowledge

    Ready to secure your financial future? Subscribe Today For Tax Knowledge Tomorrow

    JOIN 2,000+ OTHERS. YES, IT’S COMPLETELY FREE. ZERO SPAM, UNSUBSCRIBE AT ANY TIME.

    How Can we help?

    Don’t worry, our consultations are 100% Confidential & 100% Free