Business Week: Tax Tips for Procrastinators
Business Week Article: Tax Tips for Procrastinators
By: Karen E. Klein
April is right around the corner, which means it’s tax time for individuals and unincorporated small businesses. If you’re one of the many entrepreneurs who has put off thinking about taxes until the last minute, you’re certainly not alone. Smart Answers columnist Karen E. Klein recently asked several tax experts to discuss common issues and offer advice for tax-return procrastinators.
Stop Stalling. Although you’re getting a late start, you’ve still got two weeks to pull your paperwork together, figure out if you’re missing documents, and track them down from your clients, vendors, or lenders. Along with all the practical reasons to get cracking, this year there’s a financial incentive as well, says Kathy Harrison-Suits, a federally licensed, enrolled agent with Summit Capital Advisors in Tacoma, Wash. “In order to qualify for your tax stimulus rebate, you have to file your tax return. There’s one more reason to get it done sooner rather than later,” she says. Tax rebates will range from $300 to $1,500 for most households, but they won’t be mailed until your return is filed with the IRS. So stop beating yourself up, and get to work. “It’s normal to procrastinate, everybody does it,” she notes.
Use Last Year’s Return. When you sit down at that kitchen table with piles of paperwork, it can be overwhelming. Start by letting your 2006 return be a guideline for the documents you should have. “If you had an item of income or expense last year, you’ll probably have the same thing or similar this year,” says Keith Hall, a national tax adviser for the Dallas-based National Association for the Self-Employed. “It’s a good way to check off the documents you need to file and go searching for the ones you’re missing.”
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