How to Enjoy a Stress-Free Tax Season with Digital Documents

How to Enjoy a Stress-Free Tax Season with Digital Documents

03/25/2016

We’re now coming to the end of the tax season in the U.S. and according to this article the IRS (Internal Revenue Service) expects to receive more than 150 million individual returns in 2016, with more than 4 out of 5 being prepared using tax return preparation software and e-filed. According to John Koskinen from the IRS: “Our employees have been working hard throughout this year to make this happen. We also appreciate the help from the nation’s tax professionals and the software community, who are critical to helping taxpayers during the filing season.” This year the deadline to submit 2015 tax returns is Monday, April 18, instead of the traditional April 15 date. Washington, D.C., will celebrate Emancipation Day on that Friday, which pushes the deadline to the following Monday for most of the nation. The deadline in Maine and Massachusetts will be Tuesday, April 19.

Security Summit for Data Verification

In 2015 the IRS met with representatives of tax preparation and software firms, payroll and tax financial product processors and state tax administrators to announce a new effort to combat identity theft refund fraud in order to protect American taxpayers. According to an IRS news release dated June 11, 2015: "The agreement — reached after the project was originally announced March 19 — includes identifying new steps to validate taxpayer and tax return information at the time of filing. The effort will increase data sharing between industry and governments. There will be standardized sharing of suspected identity fraud information and analytics from the tax industry to identify fraud schemes and locate indicators of fraud patterns. And there will be continued collaborative efforts going forward."

 

Digital Receipt Management

Right now many SMBs would appreciate a helping hand in order to file their taxes as quickly as possible. The ideal solution would be to use a cloud-based digital receipt management tool that is accepted by the IRS. By meeting these requirements you could ensure that your receipts are legible and that they link back to other purchasing references, like credit card spending. This can be a lifesaver if you are subject to an audit. Such a solution helps you reduce your paper clutter. And once you submit your receipts, through postal mail or digitally, they are digitized within a few days. They are then categorized into a default tax category, like Office Supplies and Meals or Entertainment. You can also customize the categories to make it even easier to find tax deductions and write-offs. And then they are sent to your personal account where your data is always available online.

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