Shred-a-thon!

From the SAECEA:

Get rid of old documents safely at a free community shredding event Saturday, January 19th. It will be held from 9 a.m. until 1 p.m. at Target, 6500 E. Grant Road (at Tanque Verde).

Tax professionals from the Southern Arizona Chapter of Enrolled Agents (SACEA) will provide information on how long to keep tax records, as well as year-end tax planning tips and how to save money with Arizona tax credits.

Shredding will be done by Shred-It Arizona for free, but a suggested minimum donation of $5 per box and/or three cans of food to the Community Food Bank is requested. The Food Bank will have representatives at the shedding event to receive donations of money and canned goods. Cash donations may qualify for a “dollar-for-dollar” tax credit.

The project is sponsored by SACEA, Shred-It Tucson, Community Food Bank and Target Stores.

As the year end draws near and people start clearing out clutter, Enrolled Agents want them to be aware of which financial documents they should keep and which they can dispose of.

This is also an ideal time to do some year-end tax planning to save when their tax returns are prepared. One really valuable way is to take advantage of Arizona tax credits.

One of the Arizona “dollar-for-dollar” credits is for donations to nonprofit organizations that help the “working poor.” The Community Food Bank is one of those organizations.

Arizonans can reduce their Arizona income tax by one dollar for each dollar they donate organizations that qualify for an Arizona tax credit, up to the credit limits.

But it’s even better than that. Those same donations qualify as charitable contributions on the federal tax return, too. For somebody in a 25 percent tax bracket, they get back $1.25 for each dollar they give – and help the community at the same time.

The Food Bank is stretched thin as it prepares for the holidays, so organizing this event is a way Enrolled Agents can give back to the community and help taxpayers understand how they can benefit themselves while helping others.

Enrolled Agents are federally-licensed tax practitioners who both specialize in taxation and have unlimited rights to represent taxpayers before the Internal Revenue Service in all states. Enrolled Agents have passed a rigorous exam on tax law, subscribe to ethical standards and must complete continuing education each year. While some SACEA members provide additional accounting and financial planning services, Enrolled Agents focus on tax planning, preparation and representation.

The Enrolled Agent designation was established by Congress after the Civil War. Only about 40,000 individuals in the U.S. currently are qualified as Enrolled Agents.

The Southern Arizona Chapter of Enrolled Agents is the local chapter of the Arizona Society of Enrolled Agents and the National Association of Enrolled Agents. More information about the organization is available on its website, www.sacea.org.