Here it is, mid-July, three months after the official federal tax filing deadline. Do you have taxes on your mind? It’s likely you do not. But according to the tax pros at the Equifax Finance blog, you should.
In the recent article, “Three Reasons to Care About Taxes After Tax Season Ends,” Equifax shares a few reasons why you should keep taxes on your mind year-round.
First, the Internal Revenue Service (IRS) sends notifications any time of year. The IRS may send a notification about missing information, an audit, or an additional proposed refund. If information is missing, you are responsible for following up. The IRS will send additional notices but eventually can collect money you owe through wage garnishment, withholding future refunds or filing liens against you. If you receive a notice about an additional proposed refund, you have three years to make a claim before the IRS closes its books and you forfeit your refund. If you have recently moved, you can change your address with the IRS using Form 8822.
Second, you may find that you may have made a mistake or missed some deductions. After the rush and stress of tax-filing season is over, you should research tax benefits and deductions for next year’s return. When you do, you may find that you missed a credit or deduction; don’t worry, you can amend your tax return and get a refund for up to three years after you filed it.
Third, you may decide that it is time to change your tax situation. Take the time to review your finances to see if there are tax benefits you can take advantage of that you are not currently using. You may decide to have more or less money withheld from your paycheck each month, make some tax-advantaged investments or move funds from your IRA.
Read the full article on the Equifax Finance blog, and while there, check out the many other articles on taxes, as well as those on other personal finance topics like retirement, insurance, credit and more.