What Should Business Owners Know About the 2024 Tax Filing Season and IRS Improvements?
As we gear up for the 2024 tax season, the Internal Revenue Service (IRS) has set January 29 as the official start date for accepting and processing 2023 tax returns. With an estimated 128.7 million individual tax returns expected by April 15, 2024, business owners need to be aware of important dates and the IRS’s ongoing efforts to improve taxpayer services.
While the IRS won’t begin processing returns until January 29, individuals using software companies or tax professionals can start preparing their taxes earlier. Software companies accept electronic submissions beforehand, and IRS Free File opens on January 12, allowing early preparation. Additionally, the IRS Direct File pilot, expected in mid-March, will enable eligible taxpayers to file directly with the IRS.
The IRS continues to enhance its services to taxpayers, building on the successes of previous years. Commissioner Danny Werfel emphasizes improvements aimed at simplifying the tax preparation and filing process for taxpayers. These enhancements include:
- Expanded in-person service through Taxpayer Assistance Centers (TACs) with extended hours.
- Improved toll-free assistance and reduced wait times via a customer call-back feature.
- Updates to the “Where’s My Refund?” tool for clearer, more detailed refund status messages, reducing the need for additional inquiries.
- Advancements in paperless processing, allowing digital submission of documents and e-filing for 20 additional tax forms.
- An enhanced IRS Individual Online Account with added functionalities like chat options and payment plan revisions.
Key Dates and Tips for Business Owners in the 2024 Filing Season
- April 15 Deadline: Most taxpayers must file their federal tax return, pay any owed taxes, or request an extension by April 15, 2024.
- Special Deadlines: Taxpayers in Maine or Massachusetts have until April 17 due to holidays, while those in federally declared disaster areas may receive additional filing time.
- Preparation Tips: Gather necessary information beforehand, report all taxable income accurately, and file electronically for faster processing and refunds.
- IRS Free File: Available from January 12 for eligible taxpayers with AGI of $79,000 or less, offering guided tax software or fillable forms at no cost.
Understanding Refund Timelines and Resources Available
- The IRS aims to issue most refunds within 21 days, but some may take longer due to various factors.
- EITC and ACTC refunds under the PATH Act won’t be issued before mid-February, with updates available by February 17 for early filers and expected deposit by February 27 for direct deposit recipients.
- IRS.gov provides tools like the IRS Individual Online Account, Interactive Tax Assistant, and directories for choosing tax professionals or accessing free tax help.
Key Dates to Remember
- January 12: IRS Free File opens.
- January 29: Filing season start date.
- April 15: Deadline for most taxpayers.
- April 17: Deadline for Maine and Massachusetts.
- October 15: Extension filers’ due date.
Business owners should prepare early, utilize available resources for accurate filing, and consider the IRS’s improvements to streamline the tax filing process in the 2024 season.
If you’d like to discuss a strategy for your small business and help you with your taxes, Book your consultation with us today!
