IRS Urges Taxpayers to Complete End-of-Summer Tax Checkup
In a news release on August 27, the Internal Revenue Service (IRS) urged taxpayers to look over their taxes now to avoid any potentially negative surprises later.” The agency “encouraged taxpayers to consider using the end of the summer to make tax withholding or payment updates to avoid a potential surprise next year at tax time” and to complete an end-of-summer tax checkup before it’s too late.
“Save Time and Frustration Later”
In the press release, the IRS noted that a life change or job change could impact taxpayers who then don’t make adjustments as needed.
“While most taxpayers get a refund after filing their taxes, many also find they unexpectedly owe taxes,” the IRS stated. “This can be due to a life or job change for which they did not make the necessary tax adjustment during the year…These individuals should check the amount they pay, or the amount of tax they have withheld throughout the year, to bring the tax they pay closer to what is owed.”
The agency pointed out a few groups of taxpayers who should be particularly careful, including gig economy workers, individuals with a “side hustle,” and any person earning income not subject to withholding.
“Tax planning done now can save time and frustration later,” the IRS noted.
Avoiding Bills and Penalties
“Many taxpayers end up with estimated tax penalties because they underpay throughout the year,” the IRS warned. However, “Adjusting withholding on paychecks or the amount of estimated tax payments can help prevent penalties.”
That’s one reason the agency urged taxpayers to do an end-of-summer tax checkup – especially self-employed people, people with more than one job, taxpayers in the gig economy, and “those with major changes in their life, like a recent marriage or a new child.”
Fortunately, the IRS has a Tax Withholding Estimator that you can use now to work out tax withholding months before bills and penalties could start to become a problem. However, people with more complicated tax situations – or those who just want a little more help with the process – should consider working with tax attorneys like the ones at Dayes Law Firm.
Work with Dayes Law Firm Now
The team at Dayes Law Firm focuses on estate planning, tax controversy, probate litigation, ERC compliance, business formation, and tax resolution. However, we may be able to help you do an end-of-summer tax checkup so you’re all set before going into 2025.
We are here to guide you through any tax process you may need assistance with. Please contact us at (800) 304-8888 to learn more today in a free, no-obligation consultation. Our team of experienced tax attorneys looks forward to hearing from you!
