As March brings madness to various aspects of life, tax professionals are working overtime to meet the looming Tax Day deadline. The latest data shows that self-prepared e-filed returns are on the decline, with professionally prepared returns making up about 29,644,000 filings so far in 2024. The IRS has received 62,761,000 tax returns, making up about 49% of the expected total for the year. Taxpayers may be feeling overwhelmed by the complexity of tax rules, such as deductions for entertainment and meals, mileage, and small businesses.
To ease some of the stress associated with tax season, tax professionals recommend seeking assistance from bookkeepers, accountants, or tax preparers. Hiring a bookkeeper can not only save money on taxes but also reduce the risk of audits. Considering asset location in investments can also lead to significant tax savings by reshuffling positions between taxable and tax-sheltered accounts like IRAs. For those who may need more specialized financial advice, a fractional CFO could be a cost-effective solution for small businesses.
With tax season in full swing, taxpayers are also eager to receive their refunds. However, if they owe a tax debt, their refund may be withheld and applied to the tax due. The IRS generally has 10 years to collect taxes after the assessment date, with some exceptions that may extend the timeframe. Checking online for notices, balances, and tax information can help taxpayers stay on top of their tax situation and potential collections status.
In other tax-related news, the American Bar Association Section of Taxation has submitted comments to the IRS regarding proposed regulations under section 4966 of the tax code, which impose a tax on taxable distributions. Grant Thornton LLP has announced a significant investment from New Mountain Capital, LLC, marking the second private equity investment by a top 10 firm this year. The IRS may also be pushing ethical boundaries with tracking technologies on its Direct File website, raising questions about privacy and user experience.
As tax season continues, taxpayers can join Forbes for a free webinar on March 26, 2024, to learn about maximizing investment income through savvy tax tips. With important tax deadlines approaching, individuals in parts of California affected by severe storms and flooding have until June 17 to file various federal tax returns and make payments. Overall, tax professionals advise seeking help from experts to navigate the complexities of tax rules and maximize savings during tax season.
