Tax time is here and records can help alleviate some tax frustration. Keeping records of things you do throughout the past year will make remembering and finding information easy. Good records will help you:

* Identify sources of income. You may receive money or property from a variety of sources. Your records can identify these sources for you income. You need this information to separate business from nonbusiness income and taxable from nontaxable income.

* Keep track of expenses. You may forget an expense unless it's recorded. Use your records to identify expenses you can claim as deductions and help you determine if you should itemize deductions.

* Keep track of the basis of property. You need to keep records that show the basis of your property, including the original cost or the basis of the property and any improvements you've made.

* Prepare tax returns. You need records to prepare your tax return quickly and accurately.

* Support items reported on tax returns. Records can also help you in case the IRS has a question about an item on your return. If the IRS examines your tax return, you may be asked to explain the items reported. Good records will help you explain any item and arrive at the correct tax with a minimum of effort.

* In addition to tax purposes, records can help with insurance or when applying for a loan.

For more information on taxes or changes for this year's tax season, call the IRS at (800)829-1040. Or visit its Web site at www.irs.ustreas.gov.


www.irs.ustreas.gov