What Documentation to Provide to Your Accountant at Year End

Posted by: DeAnna DeWitt

It’s the time of year again when you need to begin thinking about what information to provide to your accountant.  First, take a step back to reflect on the past year.  Did any life changing events happen? Did you get married or divorced?  Did have a child?  Did you change place of residence?  These are very personal questions yet all are relevant to your tax situation.  Not only should you provide your accountant with this type of information, but you should also give them all necessary paper documentation in order for them to prepare a complete and accurate tax return.

Following is a sample list of documents that should be provided to your CPA at year end.  Keep in mind that this is not an all inclusive list.  If you are not sure whether or not a document is relevant to your taxes, it is best to include it anyway.  The more detail we have, the better!

• W-2's

• K-1's (from Trusts/Estates, Partnerships, S-Corporations)

• All 1099's (examples include: 1099-MISC, 1099-INT, 1099-DIV, Consolidated 1099, 1099-R, 1099-B, 1099-SSA)

• Cost Basis on all stock sales for the year

• Business Income and Expenses

• Rental Property Income and Expenses

• Alimony paid or received

• Itemized Deductions (examples include: charitable contributions, 1098-mortgage interest, real estate taxes paid, medical expenses, tax preparation fees)

• A summary of all estimated payments that were made during the year.

Tax season sneaks up on us all every year.  So, regardless of whether you prepare your own taxes or hire a professional to do them for you, here are a few helpful hints that will make gathering and summarizing your information easier at year end.

• All documents should be kept neat and organized.

• Keep all of your documents in one place.

• Keep your personal tax documents separate from your business documents.

• Compile relevant documentation throughout the year.  Don’t wait until the last minute to try and come up with an entire years worth of information.

Following these simple recommendations and providing as much information as possible to your accountant at year end can be very beneficial.  The risk of error or omission of pertinent information is greatly reduced. 

Also, eliminating unnecessary steps in the return preparation process, such as bouncing back and forth between accountant and client regarding missing information, can reduce preparation time. In the end, time and money will be saved.