• FILE your tax records neatly and orderly during the year. If you are not an organized person by nature as some of us are, just throw tax documents in a shoe box or stuff them into a folder labeled with “20__ tax records.” It beats turning over your whole home and garage at tax time.
• Don’t keep postponing work on your taxes until the very last minute. Haste could cause you to overlook potential sources of tax savings and will likely increase your risk of making an error.
• File Your Return Electronically. It’s easier. Refunds arrive faster – in about half the time it takes for the old paper filing.
• Visit IRS Online answers to frequently asked tax questions.
• If your tax situation is rather simple, you may do it yourself.
• If you have issues that are as complicated as your spouse, go to a tax professional (CPA or enrolled agent). Tax savings and tax planning will more that pay for their fees.
• Request an Extension of Time to File. Use Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. You can get an automatic six month extension of time to file to October 15 (the August 15 extension is gone).
• If you are not ready by the last deadline, file anyway (and amend later). You’ll save the 5% per month failure-to-file penalty. The penalty of ½ % per month for late paying is rather small compared with the penalty of 5% per month for late filing.
• If you cannot pay, request a payment plan by attaching Form 9465 on top of your income tax. You may also apply using the Web-based Online Payment Agreement application available at IRS.gov.
• If you are a habitual late filer, break out of it by filing on time this year. Feed off that energy and file early again next year. You’ll be glad you did.
Avoid stress from having to worry about penalties and interest. You’ll have to file anyway. Why add unnecessary tension? Good luck.
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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in 704 Mira Monte Place, Pasadena, CA 91101. He has 50 years of experience in accounting, consulting, and tax work.
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The Firm proudly welcomes Arlene Al-os in 2015. She obtained her bachelors of Science in Accountancy from Mindanao State University and MBA from Ateneo de Manila University. She teaches intermediate accounting at UCLA and was a professor of Economics at Asia Pacific College. She has over 15 years of experience including member firms of KPMG and BDO Seidman accounting firms.
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Our readers may call (626) 744-0200 or email tax questions to [email protected]. Please visit our website for about 300 tax tips at www.victorsycpa.com.
