In an ideal world, every detail, number and dollar amount needed for tax calculation would be receipted, catalogued and added up neatly on December 31, patiently waiting for the arrival of W-2’s, 1099’s and other official statements. For most people though, that ideal image is a far cry from reality.

Gathering the necessary data to complete the annual chore of tax preparation, however, need not be stressful or complicated. Use the tips below to begin your gathering process and streamline a data system that can make next year’s tax time a breeze.

• Look Back. Dig through the attic, the basement or wherever you stash your old tax returns and take a fresh look at your 2007 forms. More than likely, these forms will be used again for 2008. Keep a copy of your finalized return handy, especially if you plan to e-file. This year, the IRS is requiring specific numbers, such as your AGI from 2007, as an electronic signature.

• Build Categories. Based on your 2007 return, create categories for each section of this year’s paperwork. These may include business receipts, charitable contributions, mileage, health care expenses, day care bills, income sources and others, specific to individual situations. Take a sheet of paper for each category and spread them out.

• Collect Documents. Search high and low. Clean out the filing cabinet. Check through last year’s credit card bills and thumb through your checking account register or statements. Many deductions are missed each year simply because filers don’t have all of the usable information when it is time to file.

• Pile Up Receipts. Receipts can be very helpful in tax calculation. Since sales tax at the state and local level is deductible for one more year, barring an extension from the new Congress, every receipt is a possible tax break. Think through major purchases as well. Items such as vehicles, boats and even home improvement projects may help your bottom line. As you find receipts, add them to the appropriate categories.

• Sort and Order. Sort all documents carefully, making sure each item is in the right pile. If you are ever audited, it is imperative that your supporting documents be easily interpreted and re-tallied. Once the sort is completed, place each stack in the order it will be used on your main tax return form. This will make the process of tax preparation smoother and more accurate whether you do the work or take it to a professional.

• Add It Up…Twice. Using the sheet of paper that labeled each pile during the sorting phase, add up each group. Add subcategories as necessary and include specific descriptions of large purchases as well as of groups of like items that are totaled. Be sure to add it up until the numbers agree twice. The most common mistakes on tax returns are transposed or mistakenly added numbers.

• Summarize. Transfer your data to a summary sheet for each form of your tax return. For some, this will be one simple sheet of paper. For others, it may be dozens. Each situation is unique, but organization is the key to accurate filing.

• File On. While your particular categories are fresh on your mind, create file folders for 2009 so that receipts and other documents can be kept in an orderly fashion for next tax season. Doing this one extra step now will save you from steps one through four above for years to come. Don’t forget to update your filing system as tax laws change through the years.

• Box and Save. Keep your official documents such as W-2’s and other statements handy by placing them in a folder along with your summary sheets. When you finish the filing process, place a copy of your submitted return into this folder as well. Place the folder in the top of a box with all of your organized supporting documents underneath. Be sure to label the box clearly. Then stack it with past years’ returns. Having a system in place will be a life saver for many of life’s adventures from home buying to an IRS audit.