Finance Blog

Three Reasons to Care About Taxes After Tax Season Ends

Written by Eva Rosenberg on June 27, 2014 in Tax  |   No comments

When I explored a career in taxes, I was promised that I could earn a year’s income by working just three or four months out of the year. That was a lie. The truth is, issues come up year-round, especially since the IRS discovered computers….

three-reasons-to-care-about-taxes-after-tax-season-endsWhen I explored a career in taxes, I was promised that I could earn a year’s income by working just three or four months out of the year.

That was a lie.

The truth is, issues come up year-round, especially since the IRS discovered computers. With all the agency’s clever cross-matching programs that now exist, I hear from the IRS all the time.

Because the IRS is working all year, you also need to pay attention to your taxes long after tax season ends.

Here are three reasons you should care about taxes after April 15:

1. The IRS can send you notifications at any time of year. If the IRS sends you a notice about missing information or an audit, it’s your responsibility to respond. If the IRS doesn’t get a response from you, it automatically sends you a series of follow-up notices. If you continue to be unresponsive, the IRS can collect its debt by garnishing your wages, keeping future tax refunds, or filing liens against you.

Had you received the notice and responded, you probably could have made the assessment go away—or you would have at least had a chance to defend yourself in an audit.

The IRS may also send you a refund or a notice about an additional proposed refund. If you don’t make a claim within three years, the IRS closes its books on you and you forfeit the refund.

To be sure you receive notices from the IRS if you move, update your address by notifying both the IRS (using Form 8822) and your state. You can look up your state form here.

2. You may have missed some deductions. Now that tax-filing season is over and you’re not stressed out about gathering your paperwork at the last minute, you actually have time to think. Be sure to research tax benefits and deductions that you may have overlooked.

Although this will help you for the coming tax filing season, you may learn of tax credits or deductions you have overlooked in the past. Don’t worry—you can amend your tax return and get a refund for up to three years after you filed it.

3. You may want to change your tax situation. As with investment portfolios, sometimes your tax situation needs some rebalancing. Review your finances to see if there are tax benefits you can take advantage of that you are not currently using. For instance, could you afford to buy a home instead of renting (and then take advantage of mortgage interest deductions)? Should you really continue running your unprofitable business, or is it time to cut it loose and get a job?

Review your withholding to see if it’s time to have more or less money withheld from your paycheck each month. Also review your retirement accounts. Is it time to make some tax-advantaged investments? Should you be moving funds from your IRA or retirement plans? The answers to these questions can help guide you to your next step.

Eva Rosenberg, EA is the publisher of TaxMama.com ®, where your tax questions are answered. She is the author of several books and ebooks, including Small Business Taxes Made Easy. Eva teaches a tax pro course at IRSExams.com and tax courses you might enjoy at http://www.cpelink.com/teamtaxmama.

No comments yet

Leave a Comment

Name :

Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.

Tax Archive

Stay Informed Sign up for our FREE Equifax email Newsletter