Published on December 13, 2018

Get Ready for Your 2018 Taxes

Keeping copies of prior year tax returns saves time.

The IRS reminds taxpayers to keep a copy of their past tax returns and supporting documents for at least three years. Certain key information from their prior year return may be required to file in 2019.

Keeping copies of prior year tax returns saves time. Often previous tax information is needed to file a current year tax return or to answer questions from the Internal Revenue Service. Taxpayers claiming certain securities or debt losses should keep their tax returns and documents for at least seven years.

A tax transcript can be ordered from the IRS. It summarizes tax return information and includes AGI. Tax transcripts are free and available for the most current tax year after the IRS has processed the tax return. Tax transcripts are available for the past three tax years.

Plan ahead. Delivery times for online and phone orders typically take five to 10 days from the time the IRS receives the request. Taxpayers who order by mail should allow 30 days to receive transcripts and 75 days for tax returns.

Net Operating Losses after the ACT (Tax cuts and Jobs Acts)

The old NOL (Net Operating Losses) allows 2 years carryback and 20 years carryforward. The new NOL disallows the carryback, but allows for the indefinite carryforward.

New NOL advantage and disadvantage:

Advantages: Indefinite carryforward period.

Disadvantage: disallows the 2 years carryback.

Plan ahead. It will affect the high net worth individual and business.

Please contact Wilson & Associates, CPAs if you need the tax consultation.