Monthly Update:
March 2009 News Update
Remember All Your Tax Documents For Your Annual Filing
You can maximize your time when meeting with a tax accountant by bringing all the documents needed to prepare your tax return. At the most basic level, you should bring identification, income documents (W-2 and 1099 forms) and expense documents.
Note that the IRS and state tax agencies are increasingly identifying people who claim the same dependent more than once, such as estranged parents both claiming the same child. Your accountant or CPA may ask that you provide Social Security cards for yourself and each dependent. This will help eliminate the possibility of filing errors by making sure the name and Social Security Number matches the IRS records for each person on the tax return.
Also bring documents to show your total income for the year. These documents may include one or more of the following:
- W-2s from your employers,
- 1099-MISC forms for self-employment income,
- 1099-INT (interest) and 1099-DIV (dividends) forms,
- 1099-B forms showing brokerage trades in stocks and bonds,
- K-1 forms for income from a partnership, small business, or trust,
- 1099-SSA form showing Social Security received.
Be sure to bring written documents for additional income not reported on a W-2 or 1099 form. Common examples of this are self-employment income, rental income, or alimony. You can compile this via spreadsheet, bank statements, or other written evidence.
Bring canceled checks, receipts, or spreadsheets for any tax-related expenses. This may include contributions to your traditional or SEP-IRA, moving expenses, college expenses, medical and dental expenses, real estate taxes, gifts to charities and churches, and daycare or childcare costs. Be aware that some expenses are reported to you. Mortgage interest, for example, is reported to you on form 1098, and student loan interest is reported on form 1098-E.
If you paid estimated taxes, bring a summary of your federal and state estimated payments and canceled checks. If you cannot locate all your documents, your tax accountant will be able to help you track down the missing information.
If you are missing a W-2 form, you can ask your employer to send new a copy of your W-2. Some employers charge a nominal fee for this service. Employers are required by law to keep copies of your W-2s and other payroll information for at least four years.
If you are missing a 1099 form, banks may have tax documents available for downloading from their website, or you can call their customer service number to get a new 1099 mailed to you. If you have investment income, your broker will be able to mail you a copy of your 1099 to report stock trading and other investment activity. Lastly, if you earned more than $600 as a consultant or independent contractor, your client is required to send you a 1099-MISC to report your income. Even if you didn't receive a 1099, you are still required to report the income to the IRS.
If you need to obtain copies of your tax documents from the IRS, you can easily obtain copies of them by mail or fax. You'll need to fill out Form 4506-T to request your income documents. This form is used to request transcripts of various tax documents. To request the income documents, check the box for line 8, "Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript."
The information will be mailed to you in the form of a computer printout of the information contained on your various income documents. Please note: the IRS only retains the federal information on these forms. State and local information, such as state withholding amounts, will not show up on this transcript. After obtaining the transcript, you may want to contact the institutions shown on the transcript to obtain a copy of the original documents.
Your tax accountant has the authority to request these documents from the IRS for you as well, and the IRS can fax the documents to your accountant's office. If you need these documents immediately, this will likely be your fastest recourse.
The IRS keeps your tax documents in their database for approximately four years, and they may retain these documents for up to ten years in their archives.
