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Nobody likes tax season – OK, let’s just go ahead and say that everyone dreads tax season. But there are some simple steps you can take to reduce the headaches, and to make things easier on your CPA. As we approach April 15, here are some ways to make your tax season go more smoothly, protecting yourself along the way:

Be Early
Assemble your documents and deliver them to your CPA as early as you can. This lets them work without the deadline pressure of Tax Day, meaning less chance for errors and more time to identify ways to minimize your tax bill. And if there’s an issue you need to correct before you file your return, you’ll have plenty of time to do so.

Every year, Baird sends a schedule of when you can expect to receive your documents – some 1099s by February 15, and for accounts with more complex products by March 15. By delaying the delivery of the latter, our correction rate for tax documents is less than 5%, compared to significantly higher rates for other firms in the industry.

Use Your CPA's Questionnaire
There’s a reason they want you to fill out their specific form, tedious though it may be. It is designed to ensure you don't forget anything important, and to prevent scrambling on your part as you reach the end of the process. And be sure to review all the questions they ask; things change from year to year, and those answers can help avoid any misunderstandings or missed opportunities.

Be As Complete As Possible
Try to send all your data to your CPA at once, rather than in pieces every week or two, and include every page of your tax documents as those extra pages often contain important details. Remember to assemble all the paperwork that isn’t necessarily standard tax documents, such as confirmation letters for charitable donations.

Keep Your Old Files on Hand
You generally want to keep tax documents for three years, since that’s the limit for filing an amended return. For example, the deadline to amend your 2021 return is April 15, 2025, or later if you extended that return. If you’re reporting unique transactions such as a like-kind exchange or bad debt deduction, keeping seven years of records is recommended.

Shorter-term documents can be kept for less time. Keep your monthly statements until you get the annual summary statement, for instance, and your annual statements until you sell the positions or close the account. But keep your old tax returns for as long as you can.

Avoid Making Your Own Summary Schedules
Let your accountant add up all the figures and complete your IRS schedules for things like freelance income. If you complete these yourself and they don't match the original documentation, your CPA will need to take time to reconcile the differences, ultimately slowing the process and increasing your fee.

Don’t Be Afraid to Extend
If you are delayed in providing your information, be prepared to file an extension. But don’t worry – that extra time will help your tax preparer do the best job they can, rather than rushing and possibly missing something.  And no, an extension won’t increase your risk of an audit!

Take Steps to Avoid Identity Theft
Tax season is also prime time for identity thieves to try to access your personal financial information. Ignore texts, emails, social media messages or even phone calls claiming to be from the IRS. If there are issues with your return, the IRS will send you a letter, and they will never demand immediate payment using a specific method, such as a prepaid debit card, credit card, gift card, wire transfer or mail order.

When downloading any tax documents, make sure to save them in a secure location. If any tax information is emailed to you, delete the email from your inbox and deleted items folder after you’ve saved them elsewhere. This will protect your information if you are a victim of a phishing email in the future.

Lastly, consider applying for an Identity Protection PIN, which is a six-digit number known only to you and the IRS to prevent anyone else from filing a tax return with your information. 

Bonus: Plan Ahead
Maintaining good records and approaching tax season efficiently can have another benefit – being proactive and comprehensive can help you minimize your taxes. We can play a key role here, working with your CPA to develop tax strategies that can pay off now and well into the future.  And once you’re finished, it makes sense to provide your advisor with a copy of your return in preparation for next year.

Editor’s Note: This article was originally published January 2023 and was updated November 2024 with more current information.

The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.

Baird does not provide tax or legal advice. Please consult your legal or tax professional for specific information.

In March’s episode, Mike and Ross discuss the recent bout of market volatility and what to keep in mind when navigating the uncertainty.

What’s New 
Mike: It’s March 2025, and the stock market has been going through a fair amount of volatility. Ross and I have been asking ourselves – is this time different? There’s a lot going on in the world right now and a lot of it is new, but there’s also a lot that isn’t. So, what’s new? First, a new administration came into power, adopting a significantly different approach to trade policy and global alliances. A central theme of this administration has been an increasing use of tariffs – the potential economic impact of which has unsettled the market.

Ross: I think that’s the primary cause of this volatility, but there are other contributing factors. First, the level and breadth of these tariffs. President Trump expanded the use of tariffs during his first term – but not nearly to the extent he has today. Investors worry that these higher tariffs could hinder economic growth. The second factor is uncertainty. Many details of the current policy proposals are unknown and seem to be changing every week. Companies are talking about how to adapt – but it’s hard to fully prepare without knowing the rules of the game. Finally, the fact that this administration may no longer view the economy and stock market as a barometer of its success has led to the uncertainty we’re seeing today. Some policymakers may seemingly be okay with economic weakness in pursuit of their broader policy goals. This upends a lot of investors’ frameworks about how to view what’s happening in Washington.

Mike: One of the things you mentioned was uncertainty. I’ve always said the stock market doesn’t hate uncertainty; it hates surprises. Without uncertainty, investors wouldn’t see returns. But surprises, like these ever-shifting tariff announcements, make it harder to keep up. Another factor impacting the current volatility is the relentless flood of news. With new headlines emerging every hour, it can be exhausting to discern what’s truly important.

Ross: We can’t take for granted how much the consumption of news has increased in the last five years, both online and via social media. This constant overload of information makes the August selloff feel like it happened a decade ago. Staying informed as an investor is great but be mindful of the weight of overconsumption over time.

What Isn’t
Mike: We’ve talked about what’s new. Let’s talk about what isn’t – selloffs. Ross and I are evidence-based investors; we look back at history to see what generally happens and use that to inform the conversations we have with clients. So how often do selloffs occur? Typically, you get three 5% selloffs and one 10% selloff every year.

Ross: Selloffs and volatility are the toll we pay for access to the market’s long-term gains. Like you said earlier, without uncertainty, the market wouldn’t have compounded at 10, 11% a year for the last century. If someone promised you those kinds of returns with no downside volatility, that would be a scam. So, selloffs are the price we pay. It doesn’t make them easier to stomach, though. Remember that every past selloff came to an end. Every bear market, every 10% correction, every little blip has ended. We hit a new all-time high in the stock market just a couple of weeks ago. It’s important keep it all in perspective.

Mike: Selloffs will always occur, but the reasons change. Five years ago, we were faced with an unprecedented COVID-19 pandemic. Now it’s tariffs and a new administration. A couple of years ago, it was inflation and interest rates. There’s always a reason and that’s not new.

Ross: On the five-year anniversary of COVID, it’s apt to reflect on what we learned through that uncertainty. About five years ago to the day, we had the most volatile calendar week in market history. In 2020, there were three days in a single week – March 9th, 12th, and 16th – that the market fell 8% or more. These days were three of the worst in the Dow’s 130-year history. But just like any bear market, it ended, and it ended quickly. The market bottomed on March 23rd, 2020, well before a stimulus bill, before the creation of a vaccine, before unemployment peaked. It then went on to more than double by the end of 2021. Selloffs end. If you get out at the wrong moment, it’s hard to get back in and reap the gains of the recovery. That isn’t new.

Your Behavior is Crucial
Mike: No matter what happens or when this selloff ends, your investing behavior is crucial. What you do when the stock market is going up is practice. What you do when the stock market goes down is the Super Bowl. Your behavior matters the most in down markets. We know all selloffs are painful – but they end. Markets are very powerful entities. If the market is down and people are feeling the effects, policymakers will pay attention. In December of 2018, as trade tensions brewed between China and the U.S., the Federal Reserve switched from a hawkish to a dovish stance. Policymakers eventually have to respond.

Ross: 2018 is a great comparison to what we’re experiencing now. We were in the middle of a trade war, the market was selling off, and the Fed kept interest rates higher than the market was comfortable with. Ultimately, this resulted in a policy pivot from the Fed. In 2020, Covid stimulus bills ultimately convinced investors things would get better. Policymakers need to please their constituents to get reelected – there’s always a breaking point.

Mike: I want to end with this quote from Kahlil Gibran: “Our anxiety does not come from thinking about the future, but from wanting to control it.” Remember that no one knows what the future holds. As an investor, trying to control an uncertain future will almost always result in failure. Would you jump out of a lifeboat in choppy water? At Baird, your financial plan and investment strategy is built to be your lifeboat, and your Baird Financial Advisor is here to help you navigate this choppy water.

The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.

Images of Kyle, Sara, and LeeAnn from last three months with families

We are experienced professionals who are dedicated to your best interests and goals, but we don't do it alone! Baird has a whole team of experts, that you may never meet, who are just as committed to helping you succeed. 

Wealth, Tax and Estate Planners
Experts who can collaborate on solutions and multigenerational planning that support you and your family

Market Analysts
Portfolio analysts, equity and fixed income analysts and investment strategists, as well as award-winning macroeconomic analysis from Strategas’ policy experts

Technology Experts
Specialists who make sure you can communicate seamlessly and securely with your advisor while investing in cutting-edge tools to provide actionable and tailored insights

Portfolio Managers
Analysts who employ unique strategies to investment research to give you a wide range of portfolios to support your investing preferences

Investment Specialists
Experts who support a robust platform that includes a broad range of investments – including advisory solutions, trusted asset managers, alternative investments and more – to address your unique goals

Cash and Lending Specialists
Lending and liquidity solution consultants to help you maximize your flexibility while ensuring your cash is working as hard for you as possible

Our Wealth Management Partners
Baird experts in businesses outside of wealth management who can partner with you for specialized guidance on business valuations, trust solutions, private equity opportunities and much more.

We know how overwhelming life can be! That is why we took the time to come up with a list of activities and volunteer opportunities coming up in the next few months for your review. If you see something interesting and have the time, head out and do it!