All About Numbers

Avoiding Costly Tax Problems - Did You Know?

As the April 15 federal tax filing deadline approaches, some people may find themselves unable to pay the full amount of tax they owe. In that circumstance, it is important to pay as much as possible by the deadline, as doing so will help keep IRS penalties and interest charges to a minimum. For any remaining balance, many people may qualify to set up a monthly payment plan that fits within their budgets. Typically, interest fees will accumulate over the course of an installment plan, but the balance owed will not spiral upward, and penalties will not escalate as long as monthly payments are made on time.

During the weeks and months after they file, some people may receive an IRS notice in the mail. The notice may request payment, especially if an installment plan has not been established. In other cases, IRS letters ask for additional information like the basis for a deduction amount, or require action to correct a filing mistake like omitting a form. A tax professional can help you properly respond to an IRS notice if you receive one, or help you set up a manageable payment plan if you cannot pay your tax balance in full.

Tax Filing & Quarterly Estimated Tax Payments Deadline on April 15

The general filing and payment deadline for 2025 federal tax returns is Wednesday, April 15th, 2026. If you are required to make quarterly estimated tax payments, the first payments for the January 1 – March 31 quarter are also due on April 15th.

If you have already filed and haven't received your refund yet, you can check its status using the IRS “Where's My Refund?” tool at https://www.irs.gov/refunds. The tool is updated once daily, typically overnight, so checking more frequently will not provide new information. Refund status is usually available within 24 hours after the IRS receives an electronically filed return. For paper returns, processing times are longer, and returns are handled in the order they are received.

IRS Third Party Authorizations – Did You Know?

All U.S. taxpayers have the right to designate a third party to work with the IRS on their behalf. In order to exercise this right, taxpayers must formally grant permission to the third party to represent them. This authorization may take several different forms:

Oral Disclosure: This level of permission simply authorizes the IRS to share the taxpayer's tax information with another person present on a phone call or in a meeting.

Third-party Designee: On their tax returns, taxpayers may designate a third party to discuss the return with the IRS. This authorization is limited to that specific return and year.

Tax Information Authorization: Taxpayers may appoint a third party to receive and review their confidential tax information for a specific type of tax for a designated time period.

Power Of Attorney: This designation authorizes a person or firm to represent the taxpayer in federal tax matters. The person or firm must be certified to practice before the IRS.

Oral disclosure and third-party designee permissions expire automatically. Taxpayers have the right to revoke tax information or power of attorney authorizations at any time, either by notifying the IRS of the revocation, or simply by appointing a new representative.

Changes to Postmarking Procedures May Affect Mailing of Tax Forms – Did You Know?

The U.S. Postal Service (USPS) made an announcement in late December that may affect millions of people who mail tax forms or payments this filing season. In general, forms and payments sent by mail are considered to be on time if they are postmarked on or before the due date. Historically, mailed items were usually postmarked the same day they were handed to a postal employee, or deposited in a USPS drop box before the last scheduled pickup time.

However, the USPS is now in the process of consolidating mail processing activities down to just 60 regional sorting locations, with a limited number of truck deliveries to those facilities daily. Since most mailed items will not get postmarked until they arrive at one of the 60 locations, many postmarks will show a date several days after the item was originally mailed. These changes are especially likely to affect rural communities, many of which will now be hundreds of miles from the nearest processing facility.

Therefore, anyone who needs to send tax documents through the mail should play it safe by dropping parcels off at a post office or collection facility at least a week before the IRS deadline. As an alternative, consider e-filing tax forms whenever possible. A tax professional can help you securely submit your return, other IRS document or tax payment electronically for fast, verified delivery.