IRS Recommendations on What to Do Before the Tax Year Ends

As the end of the year approaches, the Internal Revenue Service is reminding taxpayers of things that they should start doing now, to prepare for the filing season ahead. December 31st is the last day to take actions that will impact your 2016 tax returns. One example of this are charitable contributions which are deductible in the year made. Taxpayers that are over the age of 70 and a half are generally required to receive payments from their individual retirement accounts and workplace retirement plans by the 31st as well, however, there is a special rule that allows those that reached 70 and a half in 2016 to wait until April 1, 2017 to receive them.

Those that have moved are encouraged to tell the Postal service and the IRS via Form 8822. For name changes due to a marriage or a divorce, notify the Social Security Administration so the new name will match both their and the IRS’s records. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return. We will have more on IRS tax preparedness recommendations in future stories.