2023 Tax Season: Key Insights and Tips for a Smooth Filing

The Internal Revenue Service (IRS) has set the stage for the upcoming tax season, announcing the official start date. Mark your calendars: January 29th is the day when the 2023 tax season officially kicks off, with the IRS beginning to process returns.

Start Date Variations and Their Impact:

Each year, the start date for tax season varies slightly, posing unique challenges for both tax preparers and filers. Compared to last year's start date of January 23rd, this year’s later start means a more compressed timeframe for processing tax returns.

Myths and Realities of Early Filing:

There's a common belief that filing early in the tax season might increase your chances of an audit. The theory suggests that early filers are part of a smaller pool of returns, making them more noticeable to the IRS. However, it's important to note that there is no concrete data to support this speculation.

Reasons Behind Early Filing:

People opt to file their taxes early for various reasons. The most common ones include:

1. Anticipation of Refunds: Individuals expecting refunds often file early to expedite their cash flow.

2. Custody Disputes: Those involved in custody disagreements might file early to claim their child first, aiming to qualify for the child tax credit.

The 1099-B Statement Dilemma:

A crucial point to consider, especially for early filers, involves the 1099-B statements. Financial institutions sometimes reissue amended 1099-B statements after the initial issuance. If you file early and receive an amended 1099-B later, it could necessitate amending your tax return to reflect the updated information. This process can be cumbersome and may delay your tax outcomes.

Tax season can be complex, with ever-changing start dates and decisions about when to file. If you're navigating tricky situations like 1099-B statements or just seeking guidance for this tax season, our team is ready to assist.

For expert tax advice tailored to your needs, contact us at 808.546.5026 ext. 303 or email info@verity.cpa. Let’s make your tax season straightforward and stress-free.