Well, February is here and it’s time to start planning to file 2022 tax returns. Many people and businesses will seek extensions to file, but most people should be able to obtain their necessary documents and file in the next few weeks. Doing so early is good and often prevents scammers from filing false returns on behalf of people and stealing refunds due.
For our bankruptcy clients, tax returns are important sources of information. Those who are entitled to refunds need to know if they can retain all or a portion of the refunds or if they need to turn them over to the bankruptcy estate. Many cases won’t close until the returns are filed and submitted to the trustee. Those who owe may have options in bankruptcy as well, including repayment over a plan of reorganization.
Knowing a good local CPA is especially helpful. Large tax preparation companies are often capable of filing very simple returns. But they can be overwhelmed (and slow to assist consumers) if there are issues like audits. For this reason, we recommend competent CPAs, especially for clients with businesses. Not only does a CPA offer professional advice, they can do work that frees up our clients to focus on their businesses. If you are looking for recommendations for CPAs near you and would like our two cents, we’re happy to provide some recommendations.
Remember that although taxes are due in April, it’s usually a bad practice to wait until the last minute. Accountants are especially swamped in March and April. Handling business now can mean your file will get attention before the mad rush to file. It also means that as bankruptcy counsel we can give answers faster once we receive and review the returns.
At our firm, we strive to meet a two-day rule and have deadlines met with days to spare to review pleadings and allow for human errors (or technology glitches). We encourage you to do the same. Make plans now and be ready to take care of this yearly obligation.
If it’s time for you to start filing tax returns or if you need to speak with an attorney regarding Income Taxes, contact us for a free appointment at 913-422-0909. At W M LAW, we are “Here to Help”.