I’m a CPA: This Is How My Favorite Clients Submit Their Tax Documentation
Written by
Dawn Allcot
Edited by
Jenna Klaverweiden
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If you use a CPA for tax preparation and filing, you know the work begins long before you enter their office for your tax appointment. Your tax return is only as accurate as the data you provide.
In the event of an audit, clear records can help prove deductions, saving you stress and potentially money. But what’s the best format to submit your records to your tax preparer?
Digital Copies
Experts agree that the best tax documentation comes in the form of digital copies, which are always clear and easy to read. “When it comes to submitting documents, the worst form is faded receipts,” said Gene Bott, CPA, partner at Kevin O’Leary’s Tax Hive. “But pictures are not far behind.”
He explained that a PDF allows him to submit multiple pages in an easy-to-access format, dramatically streamlining tax filing.
Brian Zink, CEO and founder of No Upfront Tax Relief, agreed. “Providing digital copies is generally preferred over loose paper,” he said.
However, if you received paper copies of W-2s and 1099s, it’s important to hold on to them so you can cross-reference and make sure you didn’t forget to include any income on your returns.
Well-Organized Lists of Expenses and Deductions
If you run a business or have self-employment income, complicated deductions like medical expenses, or investments with capital gains, it’s important to gather the documentation in advance of your appointment and ensure it’s all accurate and accounted for.
“We tell our clients that staying organized is the best thing they can do. Labeled documents and clear summaries help a lot,” Zink said.
Bott said his favorite clients understand what makes filing more difficult and help solve that problem. “I have one client who gives me an outline of all income and expense items, allowing me to check them off and ensure they are all there. I love it!” he said.
Provide Records From Last Year
If you’re using a new tax preparer, bring your tax returns from the prior year.
“Tax preparers look for issues between your previous return and the data they’ve received for the current year. They watch for missing income or expenses, changes in addresses or dependents, or other indicators that suggest something may be missing or has changed,” Bott explained.
Some preparers review the prior year’s returns for free to see if your former preparer missed any credits or deductions that could have saved you money or given you a larger refund.
If you’re returning to a trusted CPA, review last year’s data for accuracy and changes. “We’re surprised by the number of people who change bank accounts but never tell us, only to find they don’t receive their direct deposit. Updating your information is critical,” Bott said.
Zink agreed. “It always helps to point out changes that occurred during the year. When we start with complete information, the process is usually smoother,” he said.
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