The IRS and Your Tax Return: What’s Changing This Year?
The April 15 tax deadline fast approaching, yet millions of Americans still haven’t filed their returns. According to the Wall Street Journal, as of mid-March, the IRS had received approximately 70.4 million returns, down 1.7% from last year. While some are simply procrastinating, others face challenges such as waiting on tax documents, navigating self-employment income or qualifying for extended deadlines due to natural disasters. Here’s what you need to know about this year’s tax season and how the IRS is handling returns, refunds and compliance.
Some Taxpayers in Disaster Areas May Have More Time
Not everyone faces the April 15 deadline. The IRS has extended the filing deadline for some taxpayers in federally declared disaster areas.
Please reach out to your Frazier & Deeter tax professional to see if you qualify for a disaster extension if you need more time. For everyone else, April 15 remains the deadline to file or request an extension.
Tax Complexity Is Delaying Filings
More taxpayers are facing complicated returns due to:
- Self-employment and gig work: Those earning freelance or gig income must account for estimated taxes, self-employment tax and business expenses, often resulting in a tax bill rather than a refund.
- Investment and pass-through income: More filers are receiving K-1 forms from partnerships and businesses, which often aren’t available until later in the season, leading many to file extensions.
- Digital assets: Cryptocurrency tax-reporting rules continue to evolve, adding complexity for those who own digital assets.
IRS Operations: No Major Delays, but Compliance Still Matters
Despite concerns over IRS layoffs in the compliance division, refunds are being processed on time and IRS phone support is available. In recent years, the IRS has become more dependent on automated systems to track things like underreported income and issue notices, aiming to reduce its dependence on physical employees.
Final Takeaway: Don’t Wait Until the Last Minute
If you haven’t filed yet, now is the time to gather your documents, explore deductions and determine whether you owe or qualify for a refund. Need help navigating tax complexities? Our team at Frazier & Deeter is here to assist. Contact us today.
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