Most individuals can't stand preparing their taxes. It's often a complex, confusing process that leaves many fearing the dreaded audit from the IRS.
And according to the latest data from the IRS, 1.8% of tax filers with reported total positive income between $1 and $5 million received an audit letter from the IRS in 2021.
While this number seems low, it certainly is higher than your chances of winning the Powerball lottery (currently 1 in over 292 million) and a key reason to have all of your ducks in a row before you file your returns this year.
Audits aside, being adequately prepared to complete your returns this tax season is essential to a stress-free and smooth filing season, especially if you have a complex financial situation.
Indeed, waiting until the April deadline to file your taxes this year could leave you with a last-minute scramble and the potential for lost opportunities (or unnecessary penalties) without proper preparation.
To be sure, the deadline for filing your taxes is months away, and you likely haven't received all of your critical tax documents from your employer and financial institutions yet. However, you can still do several things right now to prepare for the tax filing season.
In this episode, we'll cover a few essential items to consider as we head into the tax season, including what you should do with your tax documents, whether to file on your own or hire out help, and some key deadlines to consider ahead of the filing season.
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