It’s mid-March and tax season is in full force. Many people are struggling to gather data to give to their preparer to successfully complete their tax return. For other people, taxes end up as a second thought this time of year. These are the folks that push their returns out to the edge and file as late as possible…often extending their return as far out as Oct 15th. Delaying the preparation of your tax return is not a tactic I recommend.
Remember our current focus in preparing our 2010 returns is centered on last year’s data. I have found it difficult, if not impossible, to focus on the current year (2011) until the prior year’s return is completed. When looking at the past, it’s difficult to look ahead, and, as a big proponent of tax planning, I feel clients should always be looking ahead to proactively manage their tax liability.
If you are one who files late, I suggest a different tactic this year: file your return timely. By completing your return on time, you will allow yourself the opportunity to focus on the current year and perform the necessary changes now to proactively management your 2011 tax liability.
I am happy to report that all of my clients filed their 2009 returns on time. For some, this was a new experience…..but certainly a positive experience. I intend to push my clients for the same results this year and every year.
If you are looking for a simple way to improve your financial well-being, simply file your taxes on time.