19 THINGS TO KEEP IN MIND FOR 2025 TAX FILINGS

19 THINGS TO KEEP IN MIND FOR 2025 TAX FILINGS

Tax Law Changes Continue to Muddy the Waters

The One Big Beautiful Bill Act changed a significant number of rules and benefits for 2025 individual tax returns (and beyond). Consider these 19 critical points when preparing your 2025 return.

1. The due date of the return. The filing deadline for personal income tax returns is Wednesday April 15, 2026. Returns must be filed before midnight of April 15. If the return is e-filed, your e-filing confirmation generated by the IRS’s computer systems will show the date and time of filing. If your return is paper-filed, you should mail the return using certified mail or U.S. Priority Mail with tracking. Be sure to obtain and keep a receipt from the U.S. Postal Service showing the mailing date.
2. A filing extension does not extend the payment deadline. An extension of time to file your return is available if you submit Form 4868 on or before the April 15 filing deadline. In that case, you’ll have until October 15, 2026, in which to timely file. The filing extension is automatic. However, getting an extension of time to file does not extend the duedate for paying the tax. The tax must be paid by April 15. If you don’t pay by the April deadline, the IRS will assess penalties and interest. One of the IRS’s best-kept secrets is the fact that you can get an extension of time to pay taxes. That application is made on Form 1127. By filing that form on or before the April 15 deadline, you can get up to six additional months to pay without penalties (but interest still applies). The payment extension is not automatic. You must show that financial hardship will result if you are forced to pay on time. For more on this, see my book, The IRS Problem Solver.
3.  File on time even if you can’t pay. Even if you can’t pay the tax, you must file the return on time. Failure to file the return carries a penalty of up to 25 percent of the tax owed. While penalties can be canceled for reasonable cause, the IRS and the courts regularly rule that not having the money to pay is not reasonable cause for not filing the return. It may be reasonable cause for not paying on time (depending on the facts), but not having the money is not an impediment to filing a return, such as would be an illness, injury, or missing financial records, etc. See my Problem Solver for more details on penalty cancellation procedures.
4. The FBAR filing deadline. If you have an interest in, or signature authority over, offshore financial accounts, you may be required to file a FinCEN Form 114 (the FBAR form) with the Department of the Treasury. April 15 is the filing deadline. The report is required if the combined balance of all foreign accounts is more than $10,000 at any point during the previous calendar year. Failure to file can trigger both civil and criminal penalties. An automatic extension to October 15 is available. Note that FinCEN Form 114 is not filed with your tax return. The form must be e-filed directly with FinCEN. Note also that there are potential overlapping foreign disclosure requirements between Form 114 and IRS Form 8938, Statement of Specified Foreign Financial Assets. The latter is filed as part of your tax return, if required. The foreign asset reporting regime is lengthy and complex. You need to consult counsel if you believe you may have a filing requirement in this area.

Critical points 5 through 19 … 

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