Tax Pro Tip: ASK FIRST... October 15, 2004

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Tax Information With A Mother's Touch

Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 279 October 15, 2004


	Housekeeping Notes
	Last Minute Tips
	A Reward For Those Who Have Filed
	Tax Pro Tips: Contribute
	Tax Pro Tips: Rich Tips
	Tax Pro Tips: Expat Tax
	Tax Pro Tips: Ask First




	Educators Should Save Receipts


	Apples and Wine

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Ask First!

In general, the best piece of advice comes from Terrance Eckert, CPA/ABV, Tax/Audit Manager, Candy & Schonwald LLP. Eckert says, call your tax professional before you enter into a transaction. Doesn't this seem obvious?

Not to the couple in California who drew $200,000 from a 401(k) to pay off bills and settle some financial issues – and forgot to tell their tax preparer. That little tidbit surfaced during an attempt to get an offer in compromise. Fortunately, although the offer was rejected, the information turned up early enough so they don't end up filing a fraudulent return.

But as Eckert says, even if you need the money badly, talking to your tax advisor before you draw it, you can get guidance on alternatives, or at least get educated on the tax consequences so you can make allowances for the taxes you'll need to pay.

Sure, you wouldn't be that dumb! But, life happens. And things get past you.

This is a great time to reflect on your 2004 financial transactions (past and future), to see how you can prepare for next year's tax return – and either reduce the tax, or save up for the bill that's about to come due.

These tips just scratch the surface. Pick up the phone. Make a planning or review appointment with your tax professional NOW.

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