• Gather all forms sent by third parties. You should receive all W-2s and 1099s by the end of January, while K-1s aren't due until March 15. If you don't have everything by that time, call the issuer to request another copy. Don't just assume the statements are correct -- compare the information to your records and notify the issuer of any discrepancies.
  
  
• Collect forms, receipts, and canceled checks documenting deductions. Your lender will send form 1098 to report mortgage interest. Gather receipts for doctors, dentists, hospitals, pharmacies, labs, and medicine if your unreimbursed medical expenses exceed 7.5% of your adjusted gross income (AGI). Likewise, if your miscellaneous deductions exceed 2% of AGI, gather documentation for items such as union dues, safe deposit box rental, investment fees and advice, business use of automobiles, business publications, and tax preparation fees. Obtain receipts for all charitable contributions over $250.
  
  
• Assemble information for non-routine transactions, such as sales of securities or withdrawals from Individual Retirement Accounts (IRAs). You'll need to gather information on the original basis and ending value to calculate your gain or loss.
  
  
• Review your 2003 tax return to ensure you've gathered all information. This review will remind you of income or deductions you may have forgotten or documents you haven't received.

Make a resolution for 2005 to be aware of tax planning opportunities throughout the year. Take time early in the year, perhaps as part of the tax preparation process, to assess your tax situation, looking for ways to reduce your tax bill. Consider a host of items, such as debt, investments, and tax-deductible expenses. It often helps to discuss these items with a professional who can review strategies you might not have considered.

During the year, consider the tax consequences before making important financial decisions. That way, you won't find out later that there was a better way to handle the transaction.

Look at your tax situation again in the fall, to give yourself plenty of time before year-end to implement any additional tax planning strategies. At that point, you'll have a better idea of your expected income and expenses for the year. You may then want to use strategies you hadn't considered earlier in the year, such as selling investments at a loss to offset capital gains or contributing to an IRA.