Category: Taxes
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IRS Urges Taxpayers to Check Withholding Early to Avoid 2026 Surprises
The IRS is encouraging taxpayers to review their tax withholding now to avoid unexpected bills or refunds when filing next year. By adjusting withholding early, individuals can better manage cash flow and prevent penalties. The IRS offers a free Tax Withholding Estimator to help employees, independent contractors, and retirees check if the correct amount is…
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IRS Late Filing Penalty: Key Points
The IRS 2025 tax deadline has passed, and millions have yet to file. If you missed the April 15 deadline and owe taxes, penalties are piling up—5% per month for late filing and 0.5% per month for unpaid taxes. After 60 days, the minimum late penalty can reach $485. To minimize penalties, the IRS urges…
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IRS Audit Rates Decrease Amid Staffing Cuts and Increased AI Use
Between 2013 and 2021, less than 1% of US taxpayers were audited, largely due to resource constraints at the IRS. High-income filers (over $10 million) faced an 8.7% audit rate, while middle-income earners ($50,000–$500,000) experienced audit rates below 0.5%. Interestingly, lower-income earners claiming earned income tax credits had relatively higher audit rates (up to 1.5%).…