Five Year-End Tax Steps Could Help Households Prepare for 2027 Filing
Review withholding, estimated payments, records, online access and personal data before year-end to reduce filing-season uncertainty.
Tax preparation starts with decisions made before a return is filed. For the 2027 filing season, the Internal Revenue Service is urging taxpayers to review their income tax withholding, check whether estimated payments apply, organize records, use online account tools and guard personal information. The steps could help households and independent earners spot gaps before tax time, when options to adjust may be more limited.
The agency’s October 29 guidance reflects a practical point: the amount due or refunded depends in part on payments made during the year, while filing accuracy depends on having complete records. IRS CEO Frank Bisignano said that checking withholding, organizing records, using online tools and protecting personal information can help people prepare for the upcoming season and meet their tax obligations.
Match payments to income
Employees generally pay federal income tax throughout the year through payroll withholding. If withholding exceeds the amount ultimately owed, the taxpayer may receive a refund; if it falls short, the taxpayer may owe a balance when filing. A refund can be welcome, but it also means more was paid during the year than necessary to settle the tax bill.
The IRS’s Tax Withholding Estimator can help employees assess whether their current withholding fits their circumstances. The agency points in particular to major changes in income or household status: marriage, divorce, the birth or adoption of a child, and a job change can all alter the amount that should be withheld. Anyone who needs to adjust payroll withholding can provide an updated Form W-4, Employee’s Withholding Certificate, to their employer.
That review is also relevant to people whose income does not arrive through a standard paycheck. Small business owners, self-employed taxpayers and gig workers may need to make estimated tax payments each quarter. The IRS recommends that these taxpayers use the estimator to get a clearer picture of the amount to pay. Changes in life circumstances can also affect filing status, eligibility for credits and deductions, and the final amount owed or refunded, so payment planning and tax preparation are closely linked.
Set up access before filing season
An IRS Individual Online Account gives taxpayers a place to review several kinds of account information and take common actions. The agency says users can view balances, make and review payments, check payment plans, see certain notices and letters, access certain tax records and request an Identity Protection PIN.
Having access in advance can make it easier to locate information when preparing a return or checking an account. The IRS’s tools page also points taxpayers to refund status checks, tax records and transcripts, free tax preparation options, and information about credits, deductions and filing status. These resources address different points in the process: account tools cover a taxpayer’s records and payments, while the broader tools page can help with preparation and filing questions.
Build a record set that supports the return
Paper or digital, a reliable filing system reduces the scramble to gather documents once tax preparation begins. The IRS recommends keeping key records together, including Forms W-2 from employers and Forms 1099 from banks and other payers. Taxpayers should also retain records of digital asset transactions, a copy of the previous year’s federal and state returns, and bank account and routing numbers for direct deposit or payments.
Other useful items include IRS correspondence and documentation supporting credits, deductions or other tax benefits claimed. That supporting material matters because a tax return is not just a summary of income: it also reflects claims that may depend on specific records. Keeping those documents alongside income forms can make preparation more straightforward and help taxpayers identify benefits they might otherwise miss.
A system is most useful when it accounts for different sources of income and records as they arrive. Employees may need payroll forms, while business owners and gig workers may have payer forms and digital asset activity to track. The source guidance does not set out a required storage method or retention period; it recommends choosing a paper or electronic approach that keeps the relevant material accessible.
Treat unexpected messages with caution
The IRS also warns taxpayers to watch for attempts to steal money or personal information through email, text messages, phone calls or social media. Its specific advice is to avoid clicking links or opening attachments in an unexpected message that claims to come from the agency.
That precaution is especially relevant when taxpayers are gathering sensitive details for filing or accessing online accounts. A message can arrive through familiar channels and still be deceptive, so an unexpected request for information deserves scrutiny. Protecting account access and personal records is part of preparation alongside checking payments and collecting forms.
The five steps work together: payment reviews can flag a potential balance, organized records support accurate reporting, and online access can help taxpayers find account information. With the 2027 filing season ahead, the useful checkpoint is whether income, payments and documentation still reflect a taxpayer’s current circumstances before year-end.
