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January 21, 2020


New Year new tax plan? These tips can help.

New Year celebrations are done, and many may be reconsidering their resolutions. It is not too late to make another resolution, a resolution that financial professionals note will likely lead to eased mental stress and reduction of the stress that tax obligations can put on your finances. Make the resolution to get your taxes in order.

These three tips can help.

Tip 1: Get a tax checkup

The Internal Revenue Service (IRS) has repeatedly encouraged taxpayers to complete a paycheck checkup. The federal agency recognizes the recent overhaul effected a number of taxpayers. Some found themselves facing unexpected tax bills because they were unaware of how the changes would impact their returns.

Taxpayers can reduce the risk of this surprise by going to the agency’s website and using the provided withholding checkup tool. The tool will then give guidance on how to adjust withholdings to reduce surprises during tax season. Take note and make changes as needed.

Tip 2: Review offshore accounts

The IRS continues to crack down on offshore accounts. It is wise to review foreign account compliance obligations and make changes as needed. Proactive compliance can reduce or potentially eliminate the penalties.

Tip 3: Do not forget cryptocurrency

Maybe it was part of an attempt to diversify investments. Maybe it was for the novelty of having a digital asset. Whatever may have fueled the decision to buy Bitcoin or other forms of cryptocurrency, it is important to know these assets are often subject to tax obligations. Taxpayers are wise to review the rules and make sure to account for applicable transactions within their tax filings.