When is the Best Time to Think About Taxes?

tax formsDo you think after April 15 you don’t have to think about taxes for another nine months or so? Think again. The IRS is working year-round; and here are just a few reasons from the tax experts at the Equifax Finance blog why you should start paying attention to your taxes all year long.

  • The IRS sends notifications any time of year – you may receive an audit notification or a notification about missing information at any time, and you must respond. You will receive a series of follow-up notices and if you continue to be unresponsive, the IRS can collect the money you owe either by garnishing your wages, withholding future tax refunds, or filing liens against you. The IRS may also send a refund or notification about a proposed refund any time of year; if you do not make a claim on that additional proposed refund within three years, you forfeit your refund. If you move or change addresses, you can update the IRS using Form 8822.
  • You may need to amend your return – in the rush of getting your return filed by the deadline, you may have accidentally overlooked something. You may realize you missed a benefit or deduction. You can amend your returns for three years back.
  • It may be time to change your tax situation. As you review your finances, you may see that there are tax benefits that you could be taking advantage of that you aren’t. If you could afford to buy a new home in Chicago instead of renting (and take advantage of mortgage interest deductions), it may be time to buy. You may also want to review your withholding to see if you should have more or less money withheld from your paycheck each month. In addition, you can review your retirement accounts and make some tax-advantaged investments or move funds from your IRA.

Read the full article,
Three Reasons to Care About Taxes After Tax Season Ends, on the Equifax Finance blog. While you’re there, you can find many more helpful articles on taxes, as well as other personal finance topics, from retirement to insurance to savings and credit.