How to Screw Up Your Tax Returns

Here is something your CPA wants you to know...

The number one error on personal tax returns we see in our CPA practice happens with estimated tax payments.  It seems no one can tell us what they paid to the IRS for estimated tax payments.  Typically, we hear, "I paid what you told me to pay.  Put that down."  If I had to pay $1,000 for every time that was correct, but received $100 for every time that was wrong, I don't think I would ever have paid a dime.  I would also be driving a much nicer car and have richer friends - think the Kennedy's or the Bush's.

We now require that clients give us their payments in writing.  That gets us mostly off the hook, but that doesn't solve the problem.  Many clients give us amounts they paid for prior years.  Some must just make up the amounts. 

A very select few actually keep track of their payments.  They make copies of each check before mailing.  That way, even if they give us a check copy for a prior year, we have a fighting chance of identifying the payment correctly.  We love these people and send them expensive Christmas cards.

Give your poor CPA a break and make copies of your estimated tax payments before you mail them.