Avoid a Tax Surprise in 2027

Nobody likes getting an unexpected tax bill from the IRS. But for many taxpayers, the surprise could have been avoided with a little planning.

As the 2026 tax year comes to an end, the IRS is encouraging Americans to start preparing now for the 2027 filing season.

In a recent announcement, the IRS reminded taxpayers that year-round tax planning can make filing easier, help prevent mistakes, and reduce the risk of unexpected tax bills.

Whether you're an employee, self-employed, a small business owner, or someone who has experienced major life changes this year, there are several things you can do now to get ahead of tax season.

Don't Wait Until Tax Season to Start Planning

One of the biggest mistakes taxpayers make is waiting until January or February to think about their taxes.

By that time, the tax year has already ended, and some opportunities to make adjustments may have passed.

Taking a few simple steps before December 31 can help you understand where you stand financially and whether you might owe additional taxes.

The IRS recommends reviewing your withholding, checking estimated tax payments, organizing financial records, and using available online tools.

A little preparation now could save you a lot of stress later.

Check Your Paycheck Withholding

Are you having enough federal income tax withheld from your paycheck?

If the answer is no, you could be setting yourself up for an unexpected tax bill.

Your employer generally determines how much federal income tax to withhold based on your earnings and the information you provided on Form W-4.

But if your financial situation has changed, your withholding may no longer be accurate.

Consider reviewing your withholding if you:

• Started a new job
• Got married or divorced
• Had or adopted a child
• Started working multiple jobs
• Experienced a significant income change
• Became eligible for different tax credits or deductions

The IRS offers a free Tax Withholding Estimator to help taxpayers determine whether they're on track.

If adjustments are needed, you can submit a new Form W-4 to your employer.

Self-Employed? Don't Forget Estimated Taxes

If you're self-employed, own a small business, or earn money through gig work, you may not have taxes automatically withheld from your income.

That means you may be responsible for making quarterly estimated tax payments.

This applies to many independent contractors, freelancers, rideshare drivers, delivery drivers, and other taxpayers who receive income outside traditional employment.

Failing to make sufficient estimated tax payments can result in an unexpected tax balance and possible underpayment penalties.

If your income increased during 2026, now is a good time to review how much you've already paid toward your federal income taxes.

Waiting until you file your return in 2027 could leave you facing a much larger bill than expected.

Major Life Changes Can Affect Your Taxes

Your taxes can change significantly from one year to the next.

Getting married, having a child, changing jobs, or starting a business may affect your filing status, available deductions, tax credits, or the amount you owe.

For example, a taxpayer who worked multiple jobs during the year may discover that their combined withholding wasn't enough.

Similarly, someone who started a side business may have additional taxable income that wasn't covered by regular paycheck withholding.

The important thing is to understand how these changes may affect your tax return before filing season arrives.

Get Your Tax Documents Organized Now

One of the easiest ways to prepare for tax season is to keep your records organized.

Instead of scrambling to find everything in April, create a folder for your 2026 tax documents.

Important records may include:

• W-2 forms from employers
• 1099 forms from banks, clients, or other payers
• Self-employment income and expense records
• Cryptocurrency and digital asset transactions
• Records supporting deductions and credits
• IRS letters and notices
• A copy of your previous tax return
• Estimated tax payment confirmations

Keeping accurate records can help prevent reporting mistakes and make it easier to identify deductions or credits you may qualify for.

For small business owners and self-employed taxpayers, good bookkeeping is especially important.

Check Your IRS Online Account

Did you know you can access much of your tax information directly through the IRS website?

The IRS Individual Online Account allows taxpayers to securely review important information without waiting on the phone.

Depending on your account, you may be able to:

• Check your IRS balance
• Review previous payments
• View payment plan information
• Access certain IRS notices
• Review tax records
• Make payments
• Request an Identity Protection PIN

If you're unsure whether you owe money from a previous year, checking your account can help you identify potential issues before filing another return.

Watch Out for IRS Tax Scams

Tax scams don't happen only during filing season.

Scammers use emails, text messages, phone calls, and social media to impersonate the IRS and steal personal or financial information.

Some messages claim you owe taxes immediately, while others promise unexpected refunds or demand that you verify sensitive information.

Be suspicious of unexpected messages containing links, attachments, or requests for personal information.

If you receive a suspicious communication claiming to be from the IRS, verify it through official IRS channels rather than using the contact information provided in the message.

Protecting your information now can help prevent identity theft and tax-related problems later.

Already Owe Back Taxes? Don't Ignore Them

Preparing for the next tax season is important, but so is dealing with unresolved tax problems from previous years.

If you already owe the IRS, another unexpected tax bill could make your situation more difficult.

For example, taxpayers who are currently on an IRS payment plan may run into problems if they owe additional taxes and cannot pay them.

Unfiled returns, unpaid balances, penalties, and interest can also complicate your ability to resolve existing tax debt.

If you're behind, now is a good time to review your situation and understand what options may be available.

Depending on your circumstances, possible solutions may include:

• IRS installment agreements
• Currently Not Collectible status
• Offers in Compromise
• Penalty relief
• Filing missing tax returns

The right solution depends on your financial situation, filing history, and the amount owed.

A Little Tax Planning Now Can Make a Big Difference

You don't have to wait until you receive your W-2 or 1099 forms to start preparing for tax season.

Reviewing your withholding, organizing records, tracking estimated payments, and checking your IRS account can help you identify potential issues before they become bigger problems.

For taxpayers who owe back taxes, staying current with new tax obligations is also an important part of getting financially back on track.

The goal isn't simply to file your taxes. It's to avoid unnecessary surprises and have a better understanding of what you may owe.

Final Thoughts

The 2027 tax filing season will be here before you know it.

Taking a few steps now could help you avoid unnecessary stress, filing mistakes, and unexpected tax bills.

Whether you're an employee, self-employed, or a small business owner, staying organized and reviewing your tax situation throughout the year can make a difference.

And if you already owe the IRS, have unfiled returns, or are worried about another tax bill, don't wait until the problem gets worse.

Arch Tax can help you understand your tax situation and explore available options for resolving IRS debt.

Contact Arch Tax today for a free, confidential consultation.