It’s only early October and your 2022 IRS tax return isn’t due for another six months — in mid-April of 2023. But even though that tax filing deadline is still six months away (and it’s further away if you file for an automatic extension) starting on your 2022 IRS tax return now might actually save you some money and speed your refund if you are entitled to one. And if you are facing a tax debt that you can’t handle, starting on your 2022 tax return now might help you qualify for an IRS Fresh Start Program.
START EARLY TO FIND OUT IF YOU FACE A TAX DEBT
One of the best reasons to start on your 2022 taxes now is to help you determine if you are going to owe money to the IRS. If you are going to owe money, increase your withholding at work, or start putting aside money. The less money you owe, and the less time you owe it, will cut your costs. You can also make a quarterly tax payment in addition to any withholding you have made.
THE IRS IS STEPPING UP COLLECTION EFFORTS
You can’t hide your tax debt from the IRS. The IRS gets copies of your W2s and W2Gs and 1099 forms so they know what you earn. And now the IRS has a new war chest to add workers and auditors and they are stepping up efforts to collect money that is owed. So it is better if you can start paying them before they come after you for the money.
HOW TO ATTACK YOUR TAX DEBT NOW
Our tax debt resolution experts can talk to you about your options for attacking your tax debt. There is the IRS Fresh Start Initiative. There is the IRS Offer In Compromise Program. You might qualify for these options to reduce or even wipe out your debt. If you do not qualify for the IRS Fresh Start or for the IRS Offer In Compromise, our tax debt resolution experts can talk to you about payment plan options with the IRS. And the best part of this consultation is that it is free. No charge. Just call us.
BEAT THE SEASONAL RUSH TO RESOLVE YOUR TAX DEBT
If you are facing a tax debt attacking it now before the “tax season rush” gives us a better chance to get you a fast resolution. It could improve your chances for an Offer In Compromise or tax relief with the Fresh Start Initiative.
STARTING ON YOUR 2022 TAXES NOW WILL HELP YOU WITH DEDUCTIONS
Starting on your 2022 taxes now will give you more time organizing the paperwork for your tax deductions. You won’t be scrambling to find receipts in April of 2023, and by starting earlier you might be able to save some receipts that you might have lost if you didn’t organize them now.
YOU MIGHT BE DUE A REFUND
Just about every year, somewhere around 75% of taxpayers get a refund from the IRS. Steps that you take now — with about three months of 2022 remaining — could help you speed the refund you get in 2023.
Every tax deductible receipt can be valuable. Do you have envelopes to collect medical expenses and job search expenses, and are you keeping track of income from gig work? Are you keeping track of your automobile mileage for business, for looking for work, for driving to doctors and to pharmacies, and for making donations to charities? That mileage can be tax deductible and the value of each mile actually went up starting on July 1st of 2022 when the IRS adjusted the mileage deduction to reflect the higher costs of driving.
WHAT THE IRS IS LOOKING FOR NOW
Are you buying or selling stocks or cryptocurrency? The IRS is paying very close attention to cryptocurrency trades now. You might be taking profits or limiting losses by selling your cryptocurrency now so it’s a good time to record what the purchases cost and what you received. Cryptocurrency transactions are now one of the red flags for an IRS audit. The IRS even wants to know if you own any cryptocurrency even if you never made a sale.
Are you collecting unemployment? Are taxes being withheld? Perhaps you want to adjust your withholding for unemployment benefits as well as income on your job.
And look at your family budget: the end of the year before the holiday shopping season starts in November is a good time to check to see if your tax withholding is on target and if you will have money to fulfill your holiday shopping plans. Maybe you want a big refund because you consider it forced savings? Or, maybe you want to finish the year even with the IRS and spend that extra money throughout the rest of 2022.
PROTECT YOUR 2022 REFUND AND PREVIOUS REFUNDS
October is a great time to take a little time to look over where you stand. And if you spot a tax problem early, consult with a tax professional now — so you can control the damage while there’s time and lock in a refund if that’s your goal.
Also, be aware that the IRS still has about 6-million individual tax returns from 2021 and previous years that have still not been processed. The IRS says that if you are expecting a refund, and you don’t have a confirmation from the IRS that your tax return was actually received, and it’s been more than six months since you filed that tax return, you should file that tax return again so you will receive the refund you expect. The IRS says you should file electronically since it’s both faster and easier to trace and confirm receipt.
REMEMBER OUR FREE CONSULTATION
Remember that we offer a free consultation with one of our tax debt resolution experts. Just call us. We can discuss all of your tax issues, not only the IRS Offer In Compromise and the IRS Fresh Start, though those are the most common things that taxpayers ask. The video below tells you how easy it is to have this free consultation with us.
When you call us for your free consultation we can also give you tips about how to start on your 2022 tax preparation now, and we can help you track down a missing IRS tax refund. And if your tax issues include not filing a previous year’s tax return we can help you with that too, and we’ll remind you that unfiled tax returns from previous years could mean money in your pocket because you might be due a refund from those years.
The bottom line is to call us for a free consultation and to start on your 2022 IRS tax return as soon as possible. You’ll see that investing some time now really can save you money.