By ALLISSA KLINE
akline@bizjournals.com | 716-541-1612

It pays to be organized when it comes to filing income tax returns. Doing so could lead to higher refunds, according to tax experts.

So where should you start? Sarahann Kempisty, a partner in Domachowski, Kempisty & Salvatore CPAs PC, has a simple recommendation: a folder.

"I tell people to get a folder and throw things in that folder all year long," she said. "When you get your W-2 form, put it in the folder. When you get your mortgage statement, put it in the folder. When you make charitable donations, put the receipts in the folder."

Like many CPAs, Kempisty sends new clients a checklist that covers various information: marital status, income, real estate sales, business startups, student loan interest payments, charitable contributions, payments received from retirement plans and so on. The checklist is helpful in two ways: It helps clients think about and organize documents necessary for tax returns and it helps Kempisty determine the best-possible deductions for her clients.

"It comes down to strategy," she said. "We talk to clients about a lot more than tax returns. We have to know about all facets of their life to be able to prepare their returns."

January, for many people, marks the start of the tax-filing season. W-2 forms from employers arrive in the mail. Statements from banks get delivered that show interest earned during the prior year. Student-loan lenders send out statements showing the amount of interest paid during the year.

But individuals and business owners should think about tax returns and potential deductions throughout the year. CPA Lisa Kirisits, who agrees with the folder tip, encourages clients to be informed year-round about potential tax-deduction opportunities. She cites charitable contributions as an area that's often overlooked.

"People go to a fundraiser for a nonprofit school and they think it's entertainment, but actually the ticket price has a charitable contribution component," said the managing director of Kirisits & Associates CPAs PLLC, Buffalo.

Additionally, clients who normally make one charitable contribution a year could bump up those donations and surpass certain thresholds for itemized deductions if they donate Jan. 1 and again Dec. 31 in the same year, she said. The technique is called bunching.

"It may take clients over the itemized amount and it may become an important deduction for them," Kirisits said.

Father-son CPA team Bruce and Todd Zgoda of Clarence distribute so-called "tax organizers" to new and existing customers in need of income tax filing services. The heavily detailed document is a "memory jogger" for clients who may not immediately remember certain deduction-likely purchases such as energy-efficient appliances or contributions to a college savings plan, Bruce Zgoda said.

Health bills, including eyeglasses, orthodontics and dentures, may also get overlooked as potential deductible items, as well as costs associated with owning rental property. he suggests people keep all relevant receipts on hand, even if the purchase is tracked on a bank or credit card statement.

"When you get these statements, put them in a folder and keep them in one place," he said. "Then go through the tax organizer ... and you'll see what you could be missing."

Taxpayers must file 2010 income tax returns no later than April 18 this year. Some taxpayers - such as those claiming the higher-education tuition and fees deduction, the educator-expense deduction or itemized deductions on Schedule A that include mortgage interest, charitable deductions, medical and dental expenses and state and local taxes - have to wait until mid-February to file in order to give the IRS time to reprogram some systems. The reprogramming is necessary due to the late December tax law changes enacted by the federal government.