In grad school, my roommate was an accounting major. We turned out to be pretty compatible – right brain and left brain. She went on to get her CPA and started working as a tax preparer. She’s still at it, although I do wonder when she’s going to decide she’s had enough. I admire her ease with numbers – I certainly don’t have that. She also has to keep up with all the complicated changes in tax policy so she can do right by her clients every year. This is her busy season. I pretty much don’t expect to hear from her until May.
This year the IRS is going through a lot, which may complicate tax filing. In the last four years they got funding passed to hire more workers and invest in technology to streamline processes. Now they’re being asked to let people go. In addition, while key provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 are set to expire on December 31, 2025, Republican policymakers hope to preserve most of it. So stay tuned.
We don’t know yet how any of this will impact service this tax season, but I did a little research.
What the experts are saying
Tax specialists who know more than I do are advising people to stay on track with their tax filings. But there are few things you can do to help your tax return move smoothly through the system. Tara Siegel Bernard, a personal finance writer for the New York Times, shared practical advice from tax experts in a February article, What to Know About Filing Taxes as the I.R.S. Sheds Workers. Here’s some of what I learned:
Avoid delays by filing ASAP – The sooner you file, the sooner your return can be processed. April 15 is the deadline (unless you file for an extension), but the IRS is open for business right now. In fact, about 20% of federal returns had already been filed as of mid-February.
File electronically – About 91 percent of taxpayers file their returns electronically, either by hiring a tax professional, using tax software, or using the IRS’s free Direct File system. Tax experts say the fastest route is to file electronically and arrange direct deposit for your refund.
Check, check, and double check – Returns can be slowed down if the system detects errors or if all the correct forms aren’t included. It pays to be extra careful when entering data into your tax software. And if you find something that looks off when your tax preparer has you review your return, be sure to ask about it.
Be kind to your IRS worker – Yes, their job is to collect money for the government. And yes, they’re short-staffed and some may soon lose their jobs. If you need to contact the IRS directly, tax professionals suggest calling early in the morning and avoiding Monday, their busiest day. If your refund is delayed and you can’t reach anyone at the IRS, contact your representatives in the House or Senate and ask them to open a case at the Taxpayer Advocate Service. This will also give representatives tangible information about how the IRS is serving their constituents.
Protect your data – With DOGE gaining access to government databases, there have been questions about how protected our taxpayer information is. Even though a judge temporarily blocked their access to the IRS, it’s uncertain what that means in the future. So we all need to individually protect our data. That includes being aware of scams in which criminals pose as IRS agents. The IRS won’t call you out of the blue. If there’s a problem with your return, you’re most likely to get a physical letter in the mail.
Despite my questions, I know that the best way I can help my tax professional is to provide all my tax paperwork as soon as possible (which I’ve done). If you’ve been preparing your own tax return but have decided it’s time to get professional help, talk to your Arrivity financial planner. While Arrivity doesn’t have tax specialists on staff, they can recommend a qualified firm. Just keep in mind that our tax gurus are awfully busy this time of year so be prepared to file an extension.
Things to think about this tax season:
- If you haven’t yet made a Roth or Traditional IRA contribution, you still have until April 15 to do so.
- Under the SECURE Act 2.0, if you turn 60-63 years old in 2025, you may be eligible for a “Super Catch-up Contribution” to your retirement plan. Ask your employer for details.
- When you’re looking for tax information, be sure it comes from reliable sources. We recommend IRS.gov or a tax professional.
- If you do your own return and you have questions, don’t rush. Get answers to your questions and file an extension if needed. Just be sure to pay the estimated amount you owe based on the IRS guidelines by April 15.
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Liz is a Late Boomer in the sandwich generation who started an independent writing and brand consulting practice after years as a senior marketing executive. She lives in Seattle, Washington. Her mother lives nearby and her daughter is a recent college graduate.
The foregoing content reflects the opinions or perspective of Liz Behlke and/or Arrivity financial planners and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns Securities investing involves risk, including the potential for loss of principal. There is no assurance that any investment plan or strategy will be successful. Arrivity does not give tax or legal advice. Tax and/or legal strategies should be discussed with a professional before implementing.