7 trucs et astuces pour réussir haut la main sa saison fiscale.

The IRS collected $3.5 trillion in federal income tax from individuals and businesses during the fiscal year ending September 30, 2020. Personal income tax and payroll taxes accounted for 88% ($3.1 trillion) of the $3.5 trillion collected during the fiscal year.

• Individuals contributed $1.9 trillion, more than half of the total federal government revenue;
• Companies have paid $264 billion; and
• Individual taxpayers and businesses paid 1.3 trillion in payroll social security contributions.

The IRS has refunded more than $736 billion of the $3.5 trillion collected for the fiscal year ended September 30, 2020.

Tax returns are typically filed between January and April. This year, remember to file an income tax return even if you are not otherwise required to do so. This will allow you to claim the Child Tax Credit and the Recovery Rebate Credit if you meet certain income requirements and have not received any checks or have only received a partial payment. The terms Economic Impact Payment, Stimulus Check, and Recovery Rebate Credit are used interchangeably to refer to the federal government’s financial assistance to individuals affected by the COVID-19 pandemic.

Although the number of tax returns that taxpayers prepare themselves is constantly increasing, the majority of them still rely on a professional to help them prepare their tax returns.

Our goal is to assist taxpayers in choosing their service provider. Most of the tips and tricks we offer are adapted from publications by the IRS and the New York State Department of Taxation. We hope you find this information helpful.

1. Use a reputable professional

The IRS recommends using a reputable tax preparation service provider. For the federal tax administration, this includes chartered professional accountants (CPAs), enrolled agents (EAs), and other qualified professionals. One advantage of using a reputable provider is that they should help you avoid errors on your tax return.

Anyone with a preparer tax identification number (PTIN), regardless of their education level, can make a living preparing tax returns. However, some states require a minimum level of education. New York State, for example, requires a high school diploma. Tax preparation service providers with recognized qualifications include chartered professional accountants (CPAs), tax lawyers, and registered agents.

The term « accountant » is not a regulated title. It is commonly used to refer indiscriminately to professionals with accounting training and those without. Thus, one could say that all chartered accountants are accountants, but not all accountants are chartered accountants.

If you use the services of a tax preparation service provider in New York who is not a chartered professional accountant (CPA), a tax attorney, or an Enrolled Agent, they must:

• You will be provided with a copy of the Consumer Charter for Tax Service Providers, New York State version, before discussing its tax preparation services; and
• We will give you time to review it and answer any questions you may have.

Note that if the service provider is based in New York City, they should instead provide you with a copy of the New York City version of the Consumer Charter for Tax Return Service Providers.

2. Take the initiative

We advise you to conduct your own investigations before deciding to use the services of a tax return preparation service provider:

• Check the provider’s qualifications. You can use, for example, the searchable directory of federal tax return preparers with credentials and select qualifications that the federal tax administration has created;
• Check the provider’s history. Ask around to see if anyone you know has used their services before. And if so, ask if they were satisfied with the service they received.
• Request the service provider’s fee schedule;
• Request to electronically file your tax return;
• Ask if the service provider will be open after the tax return period to answer any questions you may have months or even years after preparing and filing your tax return;
• Never sign a blank tax return;
• Report unscrupulous service providers to the IRS or your state’s tax authority. If you or the service provider is in New York, you can contact the New York State Department of Taxation and Finance.

3. Avoid « ghost » service providers

Your tax preparation service provider must have an official tax preparer identification number (PTIN). Be wary of a provider who:

• He refuses to sign the tax return he prepared for you;
• Refuses to include his PTIN on the tax return;
• Demands payment of fees in cash only and does not provide a receipt;
• It creates fictitious income for you in order to benefit from tax credits;
• Invent tax-deductible expenses so that you get a larger tax refund or to minimize the amount of tax you owe;
• Have your tax refunds transferred to their bank account instead of yours;
• Promises to get you a larger tax refund than other providers could get you;
• They set their fees based on a percentage of the tax refund you will receive;
• Claims to have connections at the tax authorities (IRS, New York State Department of Taxation and Finance, etc.). This allows him to obtain special authorization to exploit loopholes in the general tax code.

4. Do not declare the amount of your PPP subsidized loan write-off

If you received a Paycheck Protection Program (PPP) loan and your bank approved the write-off of the debt owed to you, you do not need to declare it. This is because the write-off of a PPP loan debt is not taxable.

In addition, you can deduct expenses you paid with the subsidized loan money.

The PPP loan is a multi-billion dollar tax package that the U.S. Congress put together to help small and medium-sized businesses in operation as of February 15, 2020 to safeguard jobs and cope with the economic consequences of the Covid-19 crisis.

5. Carefully reread your tax return before signing it

If you file a paper copy of your tax return, you must sign it. If you file your tax return electronically, you must sign the electronic filing authorization form. But before signing your tax return or the electronic filing authorization form, we advise you to:

• Carefully review your tax return;
• Asking questions about topics you don’t understand;
• Make sure that your bank details are correct for the refund of any overpayment. Bank transfer is the fastest way to get reimbursed.

6. Validate your tax return

You are responsible for the reliability and accuracy of the information on your tax return regardless of who helped you prepare it.

The first thing to do to ensure you prepare a complete and accurate tax return and, if necessary, avoid any delays in your refund, is to gather all annual tax documents that attest to your income, deductible expenses, or tax credits to which you are entitled in order to reduce the amount of tax you owe.

If you are using a professional to prepare your tax return, we advise you to schedule an appointment and submit your tax documents by the end of February at the latest. This gives your service provider time to review the documents, prepare a draft tax return, and review it with you.

7. File your tax return electronically

Filing your tax return online reduces the risk of errors because the software performs the calculations, highlights common mistakes, and flags missing information. It can also help you claim valuable tax credits or deductions. Electronically filed tax returns are processed faster than paper returns.

We wish you a successful tax season!