How to Avoid Tax Filing Headaches in 2022
Taxpayers have a few extra days to prepare and file their returns this year. The deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022. However, you may want to think twice about waiting until the last minute. That’s because a significant backlog of work at the Internal Revenue Service (IRS), coupled with a number of new tax law provisions, is expected to result in delays and complications for some filers. To reduce the chance that you will be among them, the IRS urges taxpayers to file their 2021 returns as early as possible.
According to the Taxpayer Advocate Service, an independent organization within the IRS, the COVID-19 pandemic has created ongoing challenges for the agency, beginning with office closures during the early days of the pandemic. COVID relief legislation signed into law in late 2020 and early 2021 also provided the agency little time to gets its arms around new tax laws and provisions before the 2021 tax filing deadline, creating a significant backlog in processing returns In addition, budget cuts have resulted in fewer employees available to handle the growing workload.1
5 steps you can take now to avoid tax filing headaches
If you have questions about your taxes or preparing your returns, schedule time to meet with a professional tax advisor who can provide advice specific to your needs and circumstances. If you or someone you know cannot afford to work with a tax professional, free assistance is available through the IRS’s Interactive Tax Assistant tool, or to qualified taxpayers through its Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Visit IRS.gov to learn more about these resources.
If you have questions about tax-smart savings, investment or retirement income strategies, contact the office to schedule time to talk.
Please note that neither Cetera nor any of its agents or representatives give legal or tax advice. For complete details, consult with your tax advisor or attorney.
Rising Inflation Got You Down? Try These 5 Tips to Save More on Everyday Expenses
Consumer prices continue to climb at the fastest pace indecades. As noted in Cetera Investment Management’s 2022 Outlook, supply chain disruptions are a leading cause of rising inflation, along with disruptions in the labor markets, which is creating competition for employers to hire candidates and driving up salaries and wages. Rising labor costs factor into production costs and ultimately result in higher prices for consumers.1 While inflation impacts everyone, it’s most acutely felt by those living on a fixed income, including many retirees. Below are five tips to help you close the gap between rising prices and your budget.
This information was written by KRW Creative Concepts, a non-affiliate of the broker-dealer.
Retire Wise | February 2022
February 18, 2022