Drazen Zigic/iStock/Getty Images
Commitment to our readers
The GOBankingRates editorial team is committed to providing you with unbiased reviews and information. We use data-driven methods to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our review methodology for products and services.
20 years
Helping you become richer
trusted by
millions of readers
If you use a CPA for tax preparation and filing, you know that the work starts long before you even enter their office for a tax appointment. Your tax return is only as accurate as the data you provide.
In the event of an audit, clear records can help prove deductions, saving you stress and potentially money. But what is the best format to submit your records to your tax preparer?
digital copies
Experts agree that the best tax documents come as digital copies, which are always clear and easy to read. “When it comes to submitting documents, the worst form is faded receipts,” said Jean Bott, CPA, partner. Kevin O’Leary’s Tax Hive. “But the pictures are not far behind.”
He explained that a PDF allows him to submit multiple pages in an easy-to-access format, dramatically simplifying tax filing.
Brian Zink, CEO and Founder no advance tax reliefAgreed. “Providing digital copies is generally preferred over loose paper,” he said.
However, if you received paper copies of W-2s and 1099s, it’s important to keep them so you can cross-reference and make sure you haven’t forgotten to include any income on your return.
Organized lists of expenses and deductions
If you run a business or have self-employment income, complex deductions like medical expenses, or investments with capital gains, it’s important to gather documentation before your appointment and make sure it’s all accurate and accounted for.
“We tell our customers that staying organized is the best thing they can do. Labeled documents and clear summaries help a lot,” Zink said.
The bot said its Preferred Customers understand why filing is made more difficult and help solve that problem. “I have a client who gives me an outline of all the income and expense items, allowing me to check them and make sure they’re all there. I love it!” He said.
Provide last year’s records
If you’re using a new tax preparer, bring along your tax return from last year.
“Tax preparers look for issues between your previous return and the data they received for the current year. They look for missing income or expenses, changes in address or dependents, or other indicators that suggest something may be missing or changed,” the bot explained.
Some preparers provide a free review of last year’s return to see if your former preparer missed any credits or deductions that could have saved you money or given you a bigger refund.
If you are returning to a trusted CPA, review last year’s data for accuracy and changes. “We are surprised by the number of people who change bank accounts but never tell us, only to find out later that they don’t receive their direct deposit. It’s important to update your information,” Bott said.
Zink agreed. “It always helps to pinpoint the changes that have occurred during the year. When we start with complete information, the process usually goes easier,” he said.