Tip #4

Tip#4: What are source documents? Why are they important? What should I do with them? Source documents pertain to any backup documentation for all assets and liabilities that are currently on your books. This includes old as well as new accounts such as bank and credit card accounts, loans, asset purchases, etc. Gathering these documents and providing them to your CPA or EA with explanations will not only ensure that your deductions are not skipped on your taxes, but will cut down on the amount of questions your tax professional has which ultimately leads to a reduced fee for tax preparation. Who doesn't love saving money!?!