For the start of a new year, here are some tax saving tips from a New York tax attorney that will help you save money in 2013 and beyond.
Consider Taxes Before Making Agreements
Most business agreements and agreements in your personal life will have tax considerations. Considering taxes before signing legal agreements and negotiating a deal is a way to take into account the full financial commitment you are about to make. This can be especially useful in settlement agreements from litigation, sale agreements for real estate, leasing office spaces or apartments, or license agreements to use property.
Another way to pay less tax is to pay attention to tax Form 1099 as a tax saving tip. The income on this form is reported to the Internal Revenue Service so they can track and tax the income earned by freelance workers. Freelance workers have to calculate their own taxes and then make payments for the amount to the IRS, and Form 1099 should be paid attention to when you receive one.
Keep Complete Records
Keeping complete records will make any tax matter much easier to resolve. It is a good idea to keep proof that you timely mailed in returns, protests, and correspondences. These documents should be sent through certified mail or FedEx because they provide receipts. By holding onto past Forms 1040 for U.S. Income Tax Returns and Forms IT-201 in New York State, you can easily have proof for any audits or problems that might arise in the future.
Handle Tax Notices Promptly
If you receive a tax notice from the Internal Revenue Service or New York State, it is best if you handle the notice right away. Tax attorneys will be able to achieve a better result through use of tax savings tips if tax notices and problems are brought to their attention as early as possible. By ignoring tax notices, you could be turning a simple tax problem into a much larger one.