Tax season can always be a nerve-racking time of year. It questions our W-9s, W-2s, and challenges the loyalties of those we do business with on and off the record. The good news is that today’s financial landscape is both brighter and more vague than ever before.
Normal monetary transactions typically involve one party having a defined amount of payment due to another. They often provide an itemized list for services rendered and a definitive amount of money owed. Luckily both our federal and state governments don’t operate this way. It’s your responsibility and opportunity to balance the books by the end of each year and file your taxes accordingly.
This is never an easy process. If you’re feeling anxious or overwhelmed that’s a natural response to financial stress. Remember to continually remind yourself that this is your hard earned money they want and numbers are subjective. Focus your efforts and energy on being retroactive to support proactive documents moving forward.
Don’t be afraid to go all in. Make them call your hand if they really want to get in on a piece of your action. At the end of the day they need to prove it more than you do. The only thing you really need to file by your tax deadline is an extension.
If and when you’re audited you still have ample time to find and produce any invoices, receipts, and other records in question. Money moves around fast these days. They may find your numbers don’t add up in your favor, but perhaps certain US dollars are tied up in the latest cryptocurrencies and denominations. If they don’t understand the exchange rates then that’s on them to do some research and get with the times.