Investor Column | It’s income tax season. Here’s how to make it easier for you and your tax advisors

Once again, it’s tax time. That time of year when we start to collect our paperwork so our CPA or other tax advisors can do their work. I would like to make some suggestions.

• Be sure to take your financial advisor’s annual statement summary and December statements to your tax advisor. It comes in the mail around mid-January. Also, carefully open envelopes and save all paperwork, especially if the outside of the envelope says something like “Important Tax Information Enclosed.” If in doubt, take it to your tax advisor for his review.
• If you have an IRA and are over 70½, you start the process of taking at least the Minimum Annual Distribution (RMD) from your IRA. Talk to your tax advisor about the process.
• I suggest taking all your paperwork to your tax advisor about March 1 and telling him/her to start filling out the appropriate IRS forms. However, tell him NOT to complete the process, but do as much as possible. Often, 1099’s are issued in February, but re-issued with corrected figures about your investments in March. This way, your tax advisor won’t charge you to redo your tax work because you gave him re-issued 1099’s later. Then about April 1, the tax advisor can finish up and hit the print button on the printer.
• If there is a large amount of taxes due the IRS and you want to use money from your account, please let your financial advisor know the amount about 10 days before you have to write the check to make sure there is sufficient money to cover your check. I’m guessing the IRS does not like a bounced check.

If you or your tax advisor feel there is some paperwork missing, contact the advisor. Their staff probably can get copies of what you need. Be patient though.

With a little planning, I hope this tax season will run smoothly.

Jim Zientara is a financial planner with Raymond James Financial Services, Inc. Member FINRA/SIPC. His website is thefinancialplanningguy.info and he can be reached at 941-750-6818. His office is at 11009 Gatewood Drive, Suite 101, in Lakewood Ranch.

This story was originally published February 25, 2020 at 8:32 AM with the headline "Investor Column | It’s income tax season. Here’s how to make it easier for you and your tax advisors."