Tax time is a hectic season as people hastily gather their tax-related information and documentation, hire a tax preparer, fill out smsf expense return form in a rush, and at the last minute, file their returns to beat the tax return deadline in April.
However, SMSF tax returns do not need to be a stressful event. In fact, this post-returns period is the best time to reflect on the past year's earnings and taxes and to channel away for more earnings and better tax planning.
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File Your Tax Documentation
Once the SMSF tax returns are sent and over with, it is the best time to file away your returns copies and all support documentation. These records will not only help you prepare for your tax returns but will also keep you prepared in case of an IRS audit.
You can keep the documents in a folder or scan and save them in an electronic file on your computer. You can also utilize the electronic storage solution available on the IRS website to store your returns electronically.
Prepare for Coming Year
To be better prepared for the coming year, there are various steps that you can consider. Firstly, you can consider investing in quality tax software to manage your income and your tax liabilities. You can also seek the help of tax consultants and other financial advisers to help map the financial year ahead.