It’s tax return time again

Though the both the federal and state deadline for filing your 2010 tax return was pushed back to Monday, April 18 instead of the traditional April 15 date that doesn’t mean you can wait to file your taxes.

Tax professionals say the earlier the better and the better your record keeping the easier it is to prepare a tax return. Basic records such as W-2s, 1099s and brokerage year-end summaries and checkbooks, along with mortgage interest statements, summaries of charitable contributions and medical and business expenses should be ready for your tax preparer.

“People should do their homework and sit down with their tax professional to discuss issues,” said Lynbrook-based Jonathan Wolfsohn, owner of Wolfsohn Financial Services, who added that clients should also bring the previous year’s return to be reviewed.

In addition to the records, just before you have your taxes prepared, Hewlett-based CPA Jeffrey Gittleson recommends establishing a relationship with the tax preparer.

“[Clients] should make sure there is a strong rapport with the CPA or whatever firm they choose to prepare their taxes and depending on the level, speak to the manager of that firm reviewing the taxes for at least fifteen to thirty minutes,” said Gittleson, who added, clients should be aware of whom is filing their taxes and watch if their return is being delegated to a “relatively inexperienced junior associate.”

Self-employed individuals should have a profit and loss summary of all their expenses. Landlords are now being treated by the Internal Revenue Service (IRS) as a business and if electricians, plumbers and landscapers provided more than $600 worth of services the landlord has to give those people a 1099 and can’t take the deduction, said Wolfsohn. Also if a contractor such as landscaper comes weekly they could be considered employees and the landlord may need to pay workmen’s compensation.

He noted that there were nine law changes that affect taxpayers, including the government “slowly but surely closing the cash gap,” by requiring a 1099 for more than 200 sales or those which exceed $20,000 that occurred through PayPal, Visa, MasterCard and Amazon. “The number of audits are going up in the places [the government monitors] and states are communicating with each other,” Wolfsohn said.

Credits for tuition being paid, money spent on energy efficient improvements to a home and purchase of a hybrid vehicle should also be brought to the attention of your preparer.

“You should be pro-active with your accountant depending on the relationship, depending on the level of the tax preparer you have to be aware of those basic credits,” said Gittleson, who noted a red flag for staying away from a tax preparer whose fee is based on your refund. “There are scams that come to light every year and that’s something that is most worrisome.”

Emancipation Day, a holiday observed in Washington, D.C. pushed the tax filing deadline to the next business day. Deadline for businesses to mail out W-2s is Jan. 31 and Feb. 16 is the deadline to file the new W-4 for employees who claim exemption from withholding. Taxpayers requesting an extension have until Oct. 17 to file. For more deadlines and information visit irs.gov.

“The more you know, the more you can advise, ask questions and paint a better picture with more credits and deductions,” Wolfsohn said.