Tax chaos is once again upon us, and although for many this season becomes a complicated routine, for others it is just another phase where accounting plays its role, with the help of companies that know the procedure and the dates inside out. 

From the beginning of January until the end of April in the United States, the annual income tax season begins, which is based on settling the income earned in the previous year. 

Currently, the IRS (Internal Revenue Service) provided the scoop about introducing a broader category of “digital assets”, where hundreds of cases on cryptocurrencies would be considered. According to cointelegraph.com, “Binance has been actively organizing workshops for regulators around the world to better understand digital assets and their implications. These activities increased after the exchange hired a top IRS cybercrime investigator to head its crime-fighting unit” (compiled from https://es.cointelegraph.com/news/irs-prepares-for-an-increase-in-crypto-cases-in-the-upcoming-tax-season).

With this new statement, thousands of accountants across the United States must expand their knowledge to get an excellent job the next semester. 

It is well known that most clients leave everything to the last minute, causing a huge backlog of documents and delays in the process, leading to corporate and personal stress. For this reason, we will talk in-depth about the mechanisms that can be implemented to make these months of the year less of a headache. 

Three (3) ways in which we support tax season

It doesn’t have to be a headache from January to April, there are mechanisms that help to release tension and focus properly on the accounting process. The following has worked for us: 

1. We plan and distribute the work for greater effectiveness.

We organize a work calendar well ahead of time, which allows us to have an overview of dates, documents, and activities to be carried out. It is helpful to know in advance what steps will be followed and who is responsible for them. 

By implementing a work plan, the hours of employability will be reduced, and the accountants will not have to work more hours than what is already stipulated in their contract; this guarantees better time management, achievements, and reduces the likelihood of making mistakes due to fatigue.

Keep in mind that the better the planning, the greater the benefit. For example, “if you are eligible for a refund, the IRS can mail you a check or deposit the funds into your bank account. The speed with which the IRS generates this payment will depend on when you filed your tax return and how you mailed it. Generally, the process takes about three weeks”. In other words, you have a contribution in your favor that you were not counting on. 

2. We constantly follow up on the required documentation on the client’s side.

Hold on and think about all the paperwork you need for paying taxes, if you do not already have an accountant to help you with the process, now is the time to hire one.

One of the strategies we have implemented so that this time of year is not a headache is that we constantly follow up on the documentation required from the client. Therefore, You should have the following paperwork ready:

-The most common forms are W-2, 1099, medical expenses, among others. 

-Define your marital status.

-Decide whether to file electronically or by mail.

-Choose itemized return or standard deduction.

3. Our deliverables go through a double-checking process.

In order to avoid complications and delays in the tax payment procedure, we double-check all cases we work on – four eyes see better than two, don’t they?

Our work ensures that the client does not worry too much during this season, we seek to provide solutions and security in every step that is carried out. Being a team at all times is key to getting through the first half of the year. 

Tax season is indeed difficult to cope with, however, if companies incorporate better organization and planning strategies the results will be favorable for everyone involved.

A tax season should not be a war against the IRS, it is nothing more than an opportunity to secure a company’s or individual’s finances.