Edmonton Small Business Accountant :Lessons From Tax Season
Posted On: 20/06/16 - 0
The April 30 tax deadline has come and gone. Some people still have until June 15th to file without penalty but these folks should have paid their estimated taxes by April 30 to avoid interest charges on any balance due at filing. During tax preparation season and especially as we approach the deadlines for filing we see tax situations where it is difficult to advise our clients how to report the transactions involved. The principal reason for this stems from a lack of documentation. The most severe cases involve a total absence of written documentation. In cases where you have to rely on oral communication and there are alternative ways of dealing with the tax consequences the opportunity for disputes among the interested parties is high. Equally difficult is the poorly constructed agreement that really doesn’t address the financial issues between the parties. Further to that is the situation where agreements are altered from their original intention and both parties agreed to it although after the fact they wish they had not done so. I think you may be getting the picture. Needless to say the best course of action is to document transactions before they are completed. Even if this costs some money up front it is well worth it!! Call us before you sign on the dotted line and we can offer suggestions or provide you with a clear understanding of the tax consequences.