IRS Urges Taxpayers to Perform End-of-Summer Tax Checkup, IR-2024-225

The IRS has urged taxpayers to conduct an end-of-summer tax checkup to avoid unexpected tax bills in the upcoming year. The agency emphasized that many taxpayers, particularly those engaged in the gig economy or side jobs, might find themselves owing taxes if they did not adjust their withholding or make estimated payments. The IRS recommended using its Tax Withholding Estimator to help taxpayers align their tax payments with what they owed, thereby avoiding penalties and unnecessary stress during tax season.

Recent statistics revealed that while two-thirds of taxpayers received refunds in 2024, many others incurred estimated tax penalties due to underpayment throughout the year. The IRS stressed the importance of adjusting tax withholding or estimated payments, particularly for those who experienced significant life changes such as a new job, marriage, or the birth of a child. The agency also reminded taxpayers that proactive tax planning could save them time and frustration later, urging them to take advantage of the remaining months of the year to ensure their tax payments were accurate and up-to-date.

In addition to using the Tax Withholding Estimator, the IRS encouraged taxpayers with more complex financial situations, such as those subject to the Alternative Minimum Tax or those with substantial capital gains, to consult Publication 505 for more detailed guidance. This resource provided more tailored instructions for those with intricate tax scenarios, helping them navigate potential challenges and avoid surprises when filing their taxes.

IR-2024-225