For the past few weeks, tax talk has died down in this space. You may think that’s because in the middle of the summer there isn’t much tax stuff to talk about. You would be wrong, though, as I will prove in this summer tax highlights blog.
The first thing worth mentioning here is that if you have filed for an extension, keep an eye on the calendar. You only have about two months left to file. That six months that you gained with the extension sounded like a long time back in April, didn’t it? And two months probably still sound like a long time, but they mean you haven’t filed in eight months, so you might want to get a move on.
And why wouldn’t you get a move on? If you’re set to get a refund, get that money into your pocket (or account) so that you can do things with it instead of the government. If you’re set to have to have to pay, figuring out exactly how much and getting it handled could help you stave off potential penalties and interest.
Next up on the tax docket is urging everyone else to take a look at the calendar. When tax reform passed in December of last year, a lot still felt up in the air, and no one (tax professionals included) felt immediately confident on how it would affect everyone as a rule. More and more guidance has come since then, though, and now good guesses can be made.
Really good guesses can be made when you actually look at your situation from its individual perspective. Therefore, if you have not yet done so, you might want to take a look at the IRS’s withholding calculator. Answering a series of questions here will let you know what you should be having withheld from your paycheck to meet your tax obligation. Your tax picture isn’t going to look exactly the same as last year, so wouldn’t you like to know?
The IRS’s latest call for who might want to check their withholding went out to people with high incomes and complex returns. But the agency has told many different types of people that they might want to use it, though, so I don’t think there’s anyone who wouldn’t benefit from the knowledge.
And remember that look at the calendar? Did you notice that we’re rapidly moving toward the end of the year? That means that if you want to make some changes, time is starting to run low for making them effective. Do it now while your moves have time to make a significant difference.
Finally, the IRS also recently put out a notice to remind people that tax reform extended the time limit to challenge a tax levy from nine months to two years. The change in law applies to levies made before, on or after December 22, 2017, as long as the previous nine-month period hadn’t yet expired. This is one of those things that may not affect a large percentage of people, but it is still worth putting out there, for it could be very valuable to those people.
Because after all, tax news never stops around here.
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