As the tax deadline approaches, many taxpayers are feeling the stress of navigating complex rules and deductions. With the IRS receiving over 62 million tax returns so far this year, it’s clear that many are tackling their returns themselves, with self-prepared returns accounting for 52% of e-filed returns. However, as the season progresses, more taxpayers are turning to professional preparers to handle their returns. With deductions and rules changing frequently, taxpayers may be feeling overwhelmed by the process.
One way to ease the stress of tax season is to consider asset location and how your funds are invested. By reshuffling positions between taxable and tax-sheltered accounts, taxpayers may be able to save thousands of dollars in taxes. Additionally, seeking help from a bookkeeper or accountant can provide long-term benefits, such as reducing audit risks and maximizing tax savings. Hiring a fractional CFO may also be a cost-effective solution for businesses looking for financial expertise without the hefty price tag.
For taxpayers expecting refunds, it’s important to understand the collections statutes and how long the IRS can collect tax debts. The IRS typically has 10 years to collect taxes after the assessment date, but this window can be extended in certain circumstances, such as filing for bankruptcy or submitting an Offer in Compromise. Checking your online account for notices and balances can help you stay informed about your tax status.
In the world of tax and accounting, there are ongoing discussions about the ethical use of tracking technologies by the IRS, as well as the potential impact of pending legislation on tax credits and corporate-friendly provisions. Grant Thornton LLP’s recent growth investment with New Mountain Capital, LLC is a notable development in the industry, reflecting a trend of private equity investments in top accounting firms.
As taxpayers navigate the final weeks before the tax deadline, seeking out resources like webinars and tax guides can provide valuable insights and tips for maximizing tax savings. And for those participating in March Madness, whether through basketball brackets or office pools, it’s important to remember that gambling winnings are taxable. Ultimately, staying informed and seeking professional help can help taxpayers navigate the complexities of tax season and make the most of their financial situation.
