Tax Planning For the New Year: How to Avoid Past Mistakes

Admit it: 2018 was a tough year. If you’re like many taxpayers, late payments, interest, and nasty calls from the IRS left you feeling stressed and anxious. You’re hoping for a better 2019, but hope alone is not enough — you need to plan now to ensure that you avoid the pitfalls that got you in trouble in the first place.

Use Root Cause Analysis to Examine Last Year’s Tax Troubles

What, exactly, prevented you from filing or paying your taxes on time? How can these circumstances be prevented in the future? Take some time to delve into your records and determine the root cause of your current troubles. Get specific; if you filed late, how late? What could you have done to prevent penalties or to secure abatement? Develop two timelines: one recording what happened, and an alternate version detailing how, ideally, you would have responded.

Develop a Plan For Next Year

Now that you know the root cause of your tax issues, you also know what not to do in the future. Don’t fall into a costly pattern of tax mistakes; plan ahead to ensure your ability to file and pay on time. If this seems intimidating, begin by dividing the task into baby steps; what can you do now to ensure your ability to keep on top of tax obligations later?

Don’t Hesitate to Work With a Tax Expert

Be honest: are you capable of breaking out of bad patterns on your own? It’s okay if you answer this tough question with a resounding no — plenty of perfectly responsible people struggle. If you’re worried about making the same mistakes yet again, consider working with a tax expert.

Whether you’re still dealing with tax issues or looking forward to a problem-free 2019, you can benefit from the expertise of the team at Highland Tax Resolution. Call 720-398-6088 today to learn more about our tax services.