Big news! The IRS announced yesterday that tax season for 2024 returns will officially begin on January 27, 2025. They have been working hard on modernization efforts this past year — and as such, will offer more and better tools and features to help taxpayers prepare an accurate return efficiently, and to answer their questions in a timely manner. (Wishing I could say the same for the helpfulness of Congress, who is actually responsible for the insanity that is our complex labyrinth of tax code.)

A few things all taxpayers should know:

You do not need to wait until January 27th to file —

For those who are chomping at the bit to get their taxes filed, you have options. If your Adjusted Gross Income (AGI) is $84,000 or less in 2024, you can file electronically for free by using IRS Free File, available only on IRS.gov (there is even a Spanish version available). IRS Free File providers will allow taxpayers to prepare and file returns now and hold them until they can be electronically filed on that date. Many other software companies — including our professional tax software — offer a similar option. If your situation is complex, I don’t recommend this approach, as changes in forms and worksheets can affect your liability. But for most straightforward DIY filers, this is a great approach. Get it out of the way now! (Here are some good reasons for that angle.)

Tax due dates are not the same for all return types —

While April 15th is the due date for individual tax filers this year (October 15 if you file an extension), keep in mind that S-Corporations and Partnerships (which include most multi-member LLCs) are actually due one month earlier — March 17th this year (since the 15th lands on a Saturday). The reason for this is that Form K-1 is generated as a part of these returns, and that document contains information that flows through to the personal return, so that extra month is a necessary buffer. Filing an extension will take you to September, 16, 2025.

Keep in mind that estimated quarterly tax payments for business owners (including sole proprietors) are due January 15 (4Q 2024), April 15 (1Q 2025), June 16 (2Q 2025), September 15, 2025 (3Q 2025) and January 15, 2026 (4Q 2025).

If you’re in an area that has been declared in a natural disaster, these dates may have been automatically extended on your behalf. The IRS has a tool to look up information for your area.

An extension to file taxes is not an extension to pay taxes —

This is unquestionably one of the most common misunderstandings among taxpayers. The 6-month extension to file taxes is exactly that: an extension to file. It’s not an extension to pay. “Well, that’s nuts,” you say… “how am I supposed to know how much I owe if I haven’t filed yet?” This is one situation where you might consider working with a tax professional. We take many factors into consideration and work hard to come up with a projection for our small business clients. If you are a small business owner, or you have had a major life change since last year’s tax filing season that might affect your liability — consider working with a credentialed professional preparer (see more info on this, later in the article). There are numerous free programs for professional filing assistance as well (below). And if all else fails, at least include a payment of some sort — your best guess — rather than nothing, with your extension, unless you’re sure you will be getting a refund.

Refunds will not be issued if you do not file; after three years, no refunds are issued —

The good news is that if you are due a refund, and you don’t file on time, you will not face a penalty for late filing or late payment. However, the IRS will not issue your refund until you file.

The majority of all US tax filers typically do get a refund — the average of which is over $3,000 — and the IRS usually issues these within 21 days of accepting a return. Please note, however, that on the IRS website it notes that if you are claiming an Earned Income Tax Credit, by law they cannot issue the EITC-related refund before mid-February. Past issues with fraud have been too pervasive.

Generally speaking, “filing electronically and selecting direct deposit is the best way to get your refund quickly,” IRS Commissioner Werfel said in a press call. Once you have submitted your return, you can use the agency’s Where’s My Refund tool to check the status.

If you do not file a tax return for three years after the due date, the IRS will no longer issue a refund. In this situation, it is still required that a taxpayer file a return, but keep this in mind if you are behind in yours.

Creating an IRS online account truly makes life easier —

Did you know you can now create an online IRS account to look up past filings, payments, balances due, and transcripts, as well as make payments, set up payment plans, and view tax pro authorizations? They introduced this feature quietly some years ago and it’s been improving steadily ever since. Since the pandemic we have required clients to create accounts so they can download and submit account transcripts to confirm their estimated tax payments — it’s made everyone’s life better as a result.

The IRS lists creating an online account as number one on their recommendations for how to get ready to file your taxes and I would be hard-pressed to think of anything more helpful — especially if you have a payment plan, balance due, overdue balance or unfiled returns. You can even perform actions that were unheard of online at the IRS just a few short years ago, such as requesting an Identity Protection PIN and signing tax forms such as powers of attorney or tax information authorizations.

There are alternatives when it comes to how to file your taxes —

The IRS offers multiple options for filing your tax return, as do various organizations, and of course tax professionals.

The IRS offers resources for finding a credentialed tax professional in your area —

Interestingly, while most states require a professional license to cut hair or give a manicure, no license is necessary to prepare taxes. However, as complex as the tax code is, I cannot in good conscience recommend at this point that anyone work with a non-credentialed tax preparer. For one, they will not be able to represent you in front of the IRS if your return is selected for examination. Secondly, they have no requirements for a minimum number of continuing education credit hours each year. And finally, the tax code is a horrifying morass of byzantine complexity. Do you really want someone without any proof of education or testing working on your return?

The IRS offers numerous resources for finding a credentialed tax preparer in your area:

1. A directory of tax pros that have one of the accepted designations for practicing in front of the IRS. If you enter your zip code and distance, you can find someone nearby who has an accepted designation. My recommendation is that you check the boxes for Certified Public Accountant (CPA) Credential and Enrolled Agent (EA) Credential. The others are only qualified to assist in very specific scenarios. Keep in mind that in this day and age of remote work, you do not need to select a firm that is nearby, but it can be helpful if they need to have knowledge of state and local laws as well.
2. Tips for selecting a tax professional — the IRS has a list of red flags and other tips when selecting who to work with on your taxes. They also offer ways to report unscrupulous preparers or tax pro misconduct.
3. Information on choosing a tax pro, with links to many resources, including videos and articles with everything to consider.
4. They also maintain a short list of IRS Tax Pro Association partners, which are professional associations that tax pros can belong to in order to stay on top of tax law changes, get continuing education, and have a say in our country’s tax administration. The IRS recommends you choose a tax professional that is a member of at least one of these organizations. Proud to say that I am a member of two organizations on this list: the AICPA and NATP — both top-notch education providers.

Have a problem with the IRS and don’t know where to turn? The Taxpayer Advocate Service may be able to help —

I’ve worked directly with TAS — their advocates strive to ensure that every taxpayer is treated fairly and that taxpayers know and understand their rights. They’ve even developed a mind-blowing “roadmap” (more like a European subway system) to help taxpayers figure out where to go within the IRS depending on their issues. As an independent organization within the IRS, they help taxpayers resolve problems and recommend changes that will prevent problems. They are a great option if you’re not having any luck with the IRS directly — find out how you can get help here.

Tax season is just around the bend! We’re working hard to issue all our clients’ 1099-NEC forms before they’re due at the end of the month, and are in the process of sending out electronic tax organizers. I met with our team and we’re excited and ready for the most organized tax season yet. Wishing you all the same!

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