Tax Preparation

What is Tax Preparation

In its most simplistic form, tax return preparation involves gathering information, inputting financial information into the requisite schedules, and filing the tax forms on behalf of clients to pay the appropriate amount and maximize the client’s return. With the ever-increasing complexity of tax laws, this can be a daunting task. The effort involved often requires a substantial amount of time determining how to report items of income and expense and questions as to whether you are getting the best tax treatment. 

Our Tax Preparation Process

Kristen H Lane, CPA, prepares hundreds of tax returns annually with varying financial situations. Our team is intimately familiar with requisite tax forms and the information needed to maximize deductions and tax credits. The annual process of filing tax returns follows the general format as follows:

Step 1. Client Interview

We begin by interviewing clients to understand their sources of income and expenses. We review prior year tax returns to synchronize these discussions.

Step 2. Explanation of Our Process

Next, we inform clients about the tax preparation process, answering any questions they may have.

Step 3. Data Collection

We then begin collecting relevant financial records, including all IRS tax forms and supplemental financial reports or statements of income and expenses.

Step 4. Data Input

Once we have collected all relevant data, we start inputting the data from financial records into our secure tax return software and/or databases.

Step 5. Determining Deductions

Once all data has been entered, we use applicable federal, state, and local tax laws to determine each client’s individual deductions and credits and calculate and determine how much the client will pay or receive as a refund.

Step 6. Return Review

Once we’ve concluded on the Federal and state (if applicable) results, we carefully review the returns with our clients, discussing items of interest and significance affecting the current year's tax returns. We clearly communicate changes in tax obligations and offer suggestions on tax savings strategies moving forward.

Step 7. Client Authorization

Finally, we’ll obtain client authorization and complete and file tax documents with the appropriate agencies, including the IRS, and state and local government entities.

Step 8. Ongoing Representation

After the client’s tax documents have been filed, we continue to act as a representative with applicable agencies as required and necessary.