You see the effects of the decisions people have made and try to keep them in an optimal state of health. Here are the 5 Top Mistakes I have seen clients make.
And don’t forget to eat your vegetables!
1. FEAR OF THE IRS/FTB/EDD.
Yes, these acronyms are a bit scary, but as someone who has dealt with these agencies on a daily basis, ignoring them only makes it worse. If you get a letter, don’t hide it under your bed. Call me and we can work it out together, i’m here to support you.
2. SELF PREPARATION AS A MONEY SAVER.
I know there are low cost programs such as Turbo Tax, but unless you have spent some serious time studying the tax code, chances are you are either making mistakes or not getting your full refund. I see this all the time, and often the statue of limitations has expired and the errors cannot be fixed.
3.CREATIVE INDUSTRY FOLKS
who receive income from multiple sources. Don’t make the mistake of using “creativity” in your accounting. Keep scrupulous records of your expenses and earnings. A letter from the IRS asking for back taxes plus penalties can seriously make you feel like you are in a horror movie.
4. SAVE YOUR RECEIPTS.
When in doubt, don’t throw it out! Keep it all in an envelope or whatever works for you and let me decide whether it is deductible.
Receipts are your “ammunition” for shooting down your tax burden!
5. WOO-HOO I GOT A HUGE REFUND!
Hold on a second there, cowboy. The truth is that you just gave the IRS an interest free loan. By having an ace accountant on the case you can make sure your claim status is right for your tax bracket.