Tips for the tax season with U from M

If the deadline for tax registration approaches, you can save time, money and stress. David Horn, the director of the Master of Business Taxation Program at the Carlson School of Management at the University of Minnesota, divides his insight into what is observed in this tax season.

Q: Are there any significant changes this year?
Horn: One thing is constant: the deadline to submit your tax return you pay all taxes that are due to April 15.

2024 was fairly easy with the federal tax legislation for everyday individual taxpayers. It was an election year, which often means that there is not much activity from the congress because nobody wants to rock the boat. Apart from brackets, deductions and thresholds that are indicated in inflation, the tax laws for individual taxpayers are usually the same as 2023.

Q: What are some of the biggest challenges in this tax season?
Horn: One of the first measures of the Trump administration was to announce a recruitment and personnel cuts throughout the federal government, which also includes the IRS. There are some uncertainties about how this will affect the agency during the submission season. However, a reduction in the IRS personnel can lead to a delayed processing of returns and to issue reimbursements. Early submission is always a good rule of thumb. The earlier you submit, the earlier your return will be processed and the earlier you get a potential tax refund. If we approach the registration deadline, it will be more difficult to contact the IRS with questions.

Q: How do you advise you to make the tax preparation smoothly?
Horn: It's about understanding your sources of income and deduction. I recommend the customer to go through all financial accounts and understand where they could possibly receive tax documents. This can include a W-2 for wages from your employer, 1099 forms for investment and savings accounts, 1098-e for student loans etc. The collecting of the relevant documentation will rationalize the return preparation process.

Another problem that affects more people this year is increased reporting on peer-to-peer payment systems such as Venmo and PayPal. In 2024, the threshold for reporting transactions from these services was reduced from $ 20,000 to $ 5,000. If you have received payments of $ 5,000 or more about one of these applications for sold goods and services, you will receive a 1099 K document. However, the use of these platforms in order to collect costs for reimbursement between friends and the family should not be reported in the form of 1099-K. Contact a tax specialist to decipher the reporting obligations if you receive a 1099 K course.

Q: How do I avoid tax fraud?
Horn: The IRS generally initiates contact by post. If you ever receive a call or an email from someone who claims that she is from the IRS who states that you owe money and threaten to call law enforcement, this is a fraud and you should put up. The IRS does not accept any payments from unusual sources such as Apple gift cards. This is another red flag that it is a fraud. You can find more tips on avoiding potential fraud on the IRS website.

Q: What does the Minnesota University do with regard to the continued lack of tax experts?
Horn: The University of Minnesota plays an important role in the pipeline of the development of tax experts. For almost 45 years, the MBT program of the Carlson School Master of Business Taxation (MBT) has had a reputation as one of the country's best graduate tax programs. The more than 1,300 alumni influence some of the world's largest companies and companies, with many top positions held as managerial tax managers and administrative tax partners.

David Horn joined the Carlson School of Management in 2024 and is currently the director of the MBT program. David began his career in Ernst & Young's tax department, where he specialized in the taxation of the companies and the partnership, and then served as head of the tax department of the Proto Labs, Inc. and managed the global income tax function of the company. Before the Carlson School, he was an extraordinary professor at Metropolitan State University.