Introduction
The end of the year always seems to sneak up. Doesn’t it? If you still owe the IRS, now’s the time to follow an end-of-year tax checklist and take care of things before tax season hits. A few small moves before December 31 can shrink penalties, protect your refund, and make next year a lot less stressful.
Here’s a simple end-of-year tax checklist for anyone who owes the IRS — practical steps you can take this month to lower stress and stay compliant.
1️⃣ Review Your IRS Account as Part of Your End-of-Year Tax Checklist
Log in to your IRS online account to check your balance, payments, and any unfiled returns. Make sure your personal details are correct — you’d be surprised how often mail gets lost because of an old address.
2️⃣ End-of-Year Tax Checklist Tip: Confirm You’ve Filed All Returns
If you skipped a year or two, get those returns filed now. Even if you can’t pay, filing prevents additional penalties. The IRS often works more favorably with taxpayers who are up to date on their filings.
3️⃣ Make an Extra Payment (If You Can)
A small payment before year-end can reduce the daily interest that accumulates. Even a few hundred dollars shows good faith and helps bring down your balance.
4️⃣ Check Eligibility for a Payment Plan
The IRS offers several installment agreement options. You can apply online, over the phone, or through a tax professional. A payment plan helps you avoid levies or garnishments as long as you stay current. If you’d like to learn more about how these payment plans work, check out this helpful guide from Tax Defense Experts on IRS installment agreements.
5️⃣ Ask About Penalty Relief
Life happens — health issues, job loss, or natural disasters can all cause delays. The IRS may remove penalties if you can show reasonable cause. If you’re wondering how penalties work, this Investopedia article on underpayment penalties explains how they’re calculated and what triggers them.
6️⃣ Gather Your 2025 Documents Early
Start a folder for next year’s returns: income forms, receipts, deductions, and mileage logs. The more organized you are now, the easier it’ll be to file on time.
7️⃣ Talk to a Tax Professional
If what you owe feels overwhelming, don’t try to handle it alone. A good tax resolution professional can step in, talk to the IRS for you, and look for ways to cut penalties or settle your balance for less.
Need a hand sorting things out before the year wraps up? Reach out today 443-335-9011— there’s still time to make progress before the deadlines hit.
📍 Final Tip
The end of the year is your chance to reset. Whether you owe a little or a lot, taking these small steps now can make a big difference by tax season.