![\"\"](\"https:\/\/i0.wp.com\/www.thedancingaccountant.com\/wp-content\/uploads\/2025\/01\/tax-season-ahead-2023-11-27-05-17-34-utc-scaled.jpg?ssl=1\")
<\/a>Big news! The IRS announced yesterday<\/a> that tax season for 2024 returns will officially begin on January 27, 2025. They have been working hard on modernization efforts<\/a> this past year \u2014 and as such, will offer more and better tools and features to help taxpayers prepare an accurate return efficiently, and to answer their questions in a timely manner. (Wishing I could say the same for the helpfulness of Congress, who is actually responsible for the insanity that is our complex labyrinth of tax code.)<\/p>\n A few things all taxpayers should know:<\/p>\n You do not<\/em> need to wait until January 27th to file<\/strong> \u2014<\/p>\n For those who are chomping at the bit to get their taxes filed, you have options. If your Adjusted Gross Income (AGI) is $84,000 or less in 2024, you can file electronically for free by using\u00a0IRS Free File<\/a>, available only on IRS.gov (there is even a Spanish version available). IRS Free File providers will allow taxpayers to prepare and file returns now and hold them until they can be electronically filed on that date. Many other software companies \u2014 including our professional tax software \u2014 offer a similar option. If your situation is complex, I don\u2019t recommend this approach, as changes in forms and worksheets can affect your liability. But for most straightforward DIY filers, this is a great approach. Get it out of the way now! (Here are some good reasons<\/a> for that angle.)<\/p>\n Tax due dates are not the same for all<\/em> return types \u2014<\/strong><\/p>\n While April 15th is the due date<\/a> for individual tax filers this year (October 15 if you file an extension), keep in mind that S-Corporations and Partnerships (which include most multi-member LLCs) are actually due one month earlier \u2014 March 17th this year (since the 15th lands on a Saturday). The reason for this is that Form K-1 is generated as a part of these returns, and that document contains information that flows through to the personal return, so that extra month is a necessary buffer. Filing an extension will take you to September, 16, 2025.<\/p>\n Keep in mind that estimated quarterly tax payments<\/a> for business owners (including sole proprietors) are due January 15 (4Q 2024), April 15 (1Q 2025), June 16 (2Q 2025), September 15, 2025 (3Q 2025) and January 15, 2026 (4Q 2025).<\/p>\n If you\u2019re in an area that has been declared in a natural disaster<\/a>, these dates may have been automatically extended on your behalf. The IRS has a tool<\/a> to look up information for your area.<\/p>\n An extension to file<\/em> taxes is not an extension to pay<\/em> taxes \u2014<\/strong><\/p>\n This is unquestionably one of the most common misunderstandings among taxpayers. The 6-month extension to file taxes<\/a> is exactly that: an extension to file<\/em>. It\u2019s not an extension to pay. \u201cWell, that\u2019s nuts,\u201d you say\u2026 \u201chow am I supposed to know how much I owe if I haven\u2019t filed yet?\u201d This is one situation where you might consider working with a tax professional. We take many factors into consideration and work hard to come up with a projection for our small business clients. If you are a small business owner, or you have had a major life change since last year\u2019s tax filing season that might affect your liability \u2014 consider working with a credentialed<\/em> professional preparer (see more info on this, later in the article). There are numerous free programs for professional filing assistance as well (below). And if all else fails, at least include a payment of some sort \u2014 your best guess \u2014 rather than nothing, with your extension, unless you\u2019re sure you will be getting a refund.<\/p>\n Refunds will not be issued if you do not file; after three years, no refunds are issued \u2014 <\/strong><\/p>\n The good news is that if you are due a refund, and you don\u2019t file on time, you will not face a penalty for late filing or late payment. However, the IRS will not issue your refund until you file.<\/p>\n The majority of all US tax filers typically do get a refund \u2014 the average of which is over $3,000 \u2014 and the IRS usually issues these within 21 days of accepting a return. Please note, however, that on the IRS website<\/a> it notes that if you are claiming an Earned Income Tax Credit, by law they cannot issue the EITC-related refund before mid-February. Past issues with fraud have been too pervasive.<\/p>\n Generally speaking, \u201cfiling electronically and selecting direct deposit is the best way to get your refund quickly,\u201d IRS Commissioner Werfel said in a press call. Once you have submitted your return, you can use the agency\u2019s Where\u2019s My Refund<\/a> tool to check the status.<\/p>\n If you do not file a tax return for three years after the due date, the IRS will no longer issue a refund<\/a>. In this situation, it is still required that a taxpayer file a return, but keep this in mind if you are behind in yours.<\/p>\n Creating an IRS online account truly<\/em> makes life easier \u2014<\/strong><\/p>\n Did you know you can now create an online IRS account<\/a> to look up past filings, payments, balances due, and transcripts, as well as make payments, set up payment plans, and view tax pro authorizations? They introduced this feature quietly some years ago and it\u2019s been improving steadily ever since. Since the pandemic we have required clients to create accounts so they can download and submit account transcripts<\/a> to confirm their estimated tax payments \u2014 it\u2019s made everyone\u2019s life better as a result.<\/p>\n The IRS lists creating an online account as number one on their recommendations for how to get ready to file your taxes<\/a> and I would be hard-pressed to think of anything more helpful \u2014 especially if you have a payment plan, balance due, overdue balance or unfiled returns. You can even perform actions that were unheard of online at the IRS just a few short years ago, such as requesting an Identity Protection PIN and signing tax forms such as powers of attorney or tax information authorizations.<\/p>\n There are alternatives when it comes to how<\/em> to file your taxes \u2014<\/strong><\/p>\n The IRS offers multiple options for filing your tax return, as do various organizations, and of course tax professionals.<\/p>\n The IRS offers resources for finding a credentialed<\/em> tax professional in your area \u2014<\/strong><\/p>\n Interestingly, while most states require a professional license to cut hair or give a manicure, no license is necessary to prepare taxes. However, as complex as the tax code is, I cannot in good conscience recommend at this point that anyone work with a non-credentialed tax preparer. For one, they will not be able to represent you in front of the IRS if your return is selected for examination. Secondly, they have no requirements for a minimum number of continuing education credit hours each year. And finally, the tax code is a horrifying morass of byzantine complexity. Do you really want someone without any proof of education or testing working on your return?<\/p>\n The IRS offers numerous resources for finding a credentialed tax preparer in your area:<\/p>\n Have a problem with the IRS and don\u2019t know where to turn? The Taxpayer Advocate Service may<\/em> be able to help \u2014<\/strong><\/p>\n I\u2019ve worked directly with TAS \u2014 their advocates strive to ensure that every taxpayer is treated fairly and that taxpayers know and understand their rights. They\u2019ve even developed a mind-blowing \u201croadmap\u201d<\/a> (more like a European subway system) to help taxpayers figure out where to go within the IRS depending on their issues. As an independent organization within the IRS, they help taxpayers resolve problems and recommend changes that will prevent problems. They are a great option if you\u2019re not having any luck with the IRS directly \u2014 find out how you can get help here<\/a>.<\/p>\n Tax season is just around the bend<\/a>! We\u2019re working hard to issue all our clients\u2019 1099-NEC forms before they\u2019re due<\/a> at the end of the month, and are in the process of sending out electronic tax organizers. I met with our team and we\u2019re excited and ready for the most organized tax season yet. Wishing you all the same!<\/p>\n\n
\n
\n
<\/a><\/figure>\n\n
\n