Year End Tax Planning Tips

It's often said that there are only two things in life that are certain - death and taxes.

To help you manage the uncertainty often associated with having to deal with the Internal Revenue Service (IRS), we'd like to offer some timely tips designed to help you get ready for the new tax year.

Get Organized - now! This has to be the single most important thing you can do right now to get ready for next year. We know it's the holidays - a time for sharing with family and friends. However, it is also a good time to get any and everything financially-related to your 2008 tax year right now. It's down time for most and in addition to getting some much deserved rest, you can save yourself the stress and the hassle of getting ready for your tax year by pulling together all the important documentation right now, before January 1st.

Determine If You Qualify for the Recovery Rebate. If you did not qualify or did not receive the maximum amount for the 2008 economic stimulus payment, you may be entitled to a recovery rebate credit when you file your 2008 return. To determine what your stimulus payment was, visit the IRS for Stimulus Payments.

Determine Your Expenses. Gather up all receipts, bank statements and credit card statements. Be sure to keep your personal receipts separate from your business receipts. For help with this, visit our tax organizer that will help with preparing your taxes more easily and know what is missing way in advance of tax preparation time.

Know Your Rights as a Taxpayer. Throughout your contact with the IRS, the representative will explain and protect your rights as a taxpayer. You have a right to know why the IRS is asking for information, how it will be used and what happens if you do not provide the requested information. For more information, visit the Declaration of Taxpayer Rights.

For more important tax information for you as a small business owner, consider downloading the 2009 IRS Tax Calendar for Small Businesses & the Self-Employed.

Happy Holidays from Optimum Tax & Accounting Services.