4/15 Individual Tax Return Deadline Draws Near
The April 15 deadline marks the standard due date for filing individual federal income tax returns. As this date approaches, taxpayers should ensure that all relevant documentation has been accurately compiled and provided. Timely filing helps avoid potential penalties and interest, while also allowing for faster processing of any refunds due. We encourage clients to remain mindful of this deadline and to reach out with any questions or support needs as part of our planning and compliance efforts.
For our clients’ convenience and to allow additional time for thorough and accurate reporting, we have already filed automatic six-month extensions on all applicable individual returns. This extends the filing deadline to October 15. While the extension provides extra time to submit the return, it is important to note that any taxes owed are still due by April 15 to avoid interest and penalties. We remain available to assist with finalizing returns and to ensure all filings are completed by the extended deadline date.
End of April Marks the Q1 Payroll Deadline
The April 30 deadline marks the due date for filing first quarter payroll tax returns, including Form 941, Employer’s Quarterly Federal Tax Return. This filing reports wages paid, federal income tax withheld, and both the employer and employee portions of Social Security and Medicare taxes for the quarter. Timely and accurate submission is essential to remain compliant with federal requirements and to avoid penalties and interest. We encourage clients to ensure that all payroll records have been properly reconciled and that any discrepancies are addressed ahead of the filing deadline. For clients whose payroll we prepare in-house, we will be working with you to ensure on time submission and compliance.
IRS Offers Fix for Direct Deposit Refund Issues
The IRS has released new guidance to assist taxpayers whose refunds are delayed due to missing or invalid direct deposit information. Taxpayers expecting a refund are encouraged to include banking details when filing. However, if this information was not provided or was rejected, a resolution is available. Individuals can use the “Where’s My Refund?” tool to confirm the issue and then access their IRS Individual Online Account to update their banking information. Once updated, refunds are generally issued via direct deposit within seven days, helping to minimize further delays.
To resolve the issue, taxpayers should log in or create their IRS Individual Online Account, navigate to their profile, and enter valid banking details under the “Banking Information” section. In some cases, the IRS may issue a CP53E notice, giving taxpayers 30 days to provide updated information. If no action is taken within that timeframe, a paper check will be mailed approximately six weeks after the notice date. Taxpayers without a bank account may request an exception through their online account to receive a paper check sooner. For security reasons, IRS representatives cannot update banking information over the phone or in person, though they can assist with general guidance.
Washington Enacts Millionaire’s Tax Starting in 2028
On March 30, 2026, Governor Bob Ferguson signed a legislation that enacts a personal income tax on annual adjusted gross income of $1 million or more, provides a retail sales tax exemption for certain hygiene products, repeals the sales tax on certain specified services, and increases the business and occupation tax return filing threshold to $250,000, among other changes.
Beginning January 1, 2028, a tax of 9.9% will be imposed on receipt of Washington taxable income. The legislation establishes a number of credits including a credit for income taxes due to another jurisdiction on income that is also subject to the new tax, a nonrefundable credit for business and occupation or public utility taxes paid on the same income that is subject to the new tax, a nonrefundable credit for capital gains excise tax paid on the same income subject to the new tax, and a nonrefundable credit for tax expense incurred by a pass-through entity attributable to the owner.
The legislation also sets forth modifications in computing a taxpayer’s base income as well as deductions. The standard deduction is $1 million per resident individual and $1 million (combined) in the case of resident spouses or domestic partners, whether they file jointly or separately. The standard deduction is adjusted for nonresidents. Tax returns must be filed and payments made beginning in calendar year 2029. Pass-through entities may elect to pay tax at a rate of 9.9% at the entity level. The pass-through entities may opt in annually by filing an election on or before June 15 of the taxable year. The election is irrevocable for that year.
Expanded IRS Assistance for the 2025 Filing Season
The IRS has announced expanded taxpayer support options for the 2025 filing season, including increased access to both in-person and online resources. Select Taxpayer Assistance Centers (TACs) will offer special Saturday hours from 9:00 a.m. to 4:00 p.m. through the end of June, with locations in numerous states participating. In addition, more than 200 TAC locations are extending weekday hours through April 30, 2026, providing greater flexibility for taxpayers who need in-person assistance with their filings or account-related questions. Additional support is available through IRS-certified volunteers at Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites, as well as the MilTax program for military members. As a reminder, the IRS strongly encourages taxpayers to choose direct deposit for refunds, as it remains the fastest and most secure method.
