Here we are on the doorstep of April. If at this point you haven’t started to think about taxes, it is probably too late to get things done by the April 15 deadline. That doesn’t mean we should just push discussion about them off to the side, though, for a return is still something you are going to have to complete.

If you find yourself in this situation, the first step should be to get an extension. It is not something you have to work hard to achieve and is a reprieve that moves your filing deadline six months to October 15. Please note, though, it gives you extra time to file but does not give extra time to pay taxes owed. That means interest and penalties on what is owed can still start to accrue on April 15.

So if you expect to owe money to the IRS once your tax return is completed – getting this done as early as possible is in your best interests.

Many people end up putting off finishing their tax return because they are missing some documents. It could have been two months ago at this point when one thought “I’ll get going as soon as (this form) comes in.” Then it never did, so you never got started, and suddenly it’s April.

There are many reasons why you may not have received a form, and it can be as simple as it got lost in the mail.  It is a classic punchline excuse, but that doesn’t mean it never actually happens. The easiest way to fix this could be to find the missing form online. If it’s a W2, many payroll providers will have a portal where an employee can get information and forms. Many other types of companies – banks, student loan providers, mortgage providers, etc. – likely have this information available online, as well. You can go from not having the information to being all set in minutes this way.

If you can’t do that, though, you should make a phone call to the issuer of the form. I know this is no one’s preferred mode of communication any longer, but the sooner you get it done, the quicker you can start moving on. You don’t want to wait until some forms start being filed away and company efforts move into other realms as tax season comes to a close.

Not that people are looking forward to that or anything.

Warmly,

Josh Bousquet
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Every year the IRS releases its Dirty Dozen of tax scams to highlight the latest ways that scammers are out to obtain taxpayers’ information and/or money. Many of these are similar year after year, but the tactics are ever evolving so that there are always new things to be aware of. As with much of the world, a lot of what is currently new involves AI.

The problem with AI can be that it actually can “think” around how you interact with it. So with a voice-mimicked call, it possibly can answer any questions you have for it. And where AI is drawing information from much of what is available in the world, it could give answers that may appear legitimate if you try to look things up after a call.

Another tactic that plays well with this is becoming more and more prevalent is spoofing caller IDs. A big fight-back tactic against telephone scams used to be to look up where the number where the call is coming from to see if it is legitimate. Some scammers are now able to spoof caller IDs so that searching it will return information that appears to be kosher. Searching these numbers is still a good idea, but it should no longer be the only step taken to determine authenticity when a suspicious call is received.

When fighting back against these scams, many tried and true things remain atop the list of how to keep yourself safe. First, the IRS will essentially always contact you by mail first. If the first time you hear about a tax issue is by any means other than a mailed notice, you should immediately be wary. Next, don’t be afraid to take your time. If you have any concept of how the IRS operates, it is not the quickest of institutions. You are never going to hear about something for the first time where you must make an immediate payment or risk terrible consequences. Taking some time to contact the IRS yourself and determine whether something you’re hearing is legitimate is worth it.

​Finally, a reminder that scams don’t always start in trying to get a payment from you. Especially during this time of year, you may hear from groups or individuals that promise they can help you take advantage of a tax provision or credit that you were not aware of. And of course, you aren’t aware of all tax rules (that’s our job!) but that doesn’t mean every one you hear of is legitimate. As always, stick with those you trust for guidance. Ask a tax professional you have worked with before about any claims you have heard, and hey, maybe there is something more that you could be using to get a larger return, but get it done the right way.

Warmly,

Josh Bousquet
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I want to turn things around a little bit this week here. I spend time early in tax season talking about the dangers of procrastination, but some of the same tactics can keep you from filing too early.

Filing too early?

Yes, it could actually occur.  This may largely happen with people who are going about tax season alone, but if your main concern is to just get your return taken care of so you don’t have to think about it anymore, you may end up submitting it before getting all the deductions for which you qualify onto the return.

But if you give yourself a little time, you have the opportunity to make sure everything is in order and get the best possible answer at the end of a return.

I also want to take a moment to highlight the importance of making sure your information is correct on your tax return and with your tax preparer. Have you moved? Did you get married? Did you change your name? Did you have any children?

​So many of these things can seem mundane – heck, some of them could now just be your life and have happened over a year ago – but making sure it’s all correct on your tax return will keep things moving through the pipeline correctly and avoid any issues in getting your return approved. 

Warmly,

Josh Bousquet
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The passage of the One, Big, Beautiful Bill has certainly changed some things up here this tax season. Anytime there are new tax rules, there is a little bit of trepidation as we wait to see how it will all play out when it comes time to handle actual forms and returns. The recent bill’s passage, though, seems to have captured the public’s fancy a little more than usual.

I imagine that some of this has to do with the headlines of tips and overtime not being subject to taxes. This covers enough people that there are a significant number expecting to see a little bigger tax return this year. And for many – this will even come true.

At the same time, this seems to have given rise to a general idea that there are more deductions out there to be claimed and thus more people thinking they may be able to itemize deductions and not just take the standard one.

Granted, this is surely always possible. So give yourself time to get those receipts and forms together to build that deduction number as high as possible. But also remember, the standard deduction starts high, so it can be difficult for many people to eclipse:

• $15,750 for single or married filing separately
• $31,500 for married couples filing jointly or qualifying surviving spouse
• $23,625 for head of household

But if you can claim more than that, you definitely should. So move quickly if you think you are in this situation, the more you can document, the more you can potentially get back in those bigger refunds that many are envisioning.

Warmly,

Josh Bousquet
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Now that we are reaching the middle of February, I know there is only so much harping I can do about how beneficial it is to get a jumpstart on your taxes. At some point, the people who will listen have listened and there are no more gains to be made.

But before completely giving up, here is a final plea. This is not just a general plea, but goes out to certain people who may have been affected by the One, Big, Beautiful Bill.

• Workers who receive tips. This was one of the big headlines when the legislation was passed, so there probably aren’t many unaware of it. But this could put more than $1,000 in someone’s pocket. A little extra time now can ensure this is correct in your payroll paperwork and flows through correctly to your tax return to save you this money.
• Workers with overtime hours. This also was loud in the reporting around the bill, but these changes were big and new across the board, so you want to be sure all is in order to get any money that may be owed to you.
• Car Buyers. If you bought a new US-assembled car in the past year, there is a deduction of up to $10,000 that you could qualify for (and note, this will run through 2028 if you are thinking of purchasing a vehicle.)

Even in these specific circumstances, what this comes down to is having enough time to get the proper information together to be sure you are getting all the tax breaks you qualify for. There are going to be people who will not get all that they deserve this tax year because they did not give themselves the time they needed to do so. Here is a final call to try to ensure you don’t end up being one of those people.

Warmly,

Josh Bousquet
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