With no funding increase since 2000, the Internal Revenue Service has lost approximately a quarter of its enforcement officers. Fewer staff has tended to correlate with reductions in collections. This was the case last year as collections dropped to $52.4 billion from $57 billion the prior year.
Open that letter from the Internal Revenue Service right away, because a notice of deficiency (NOD) is one way that the agency assesses taxes. Dealing with the tax bill sooner rather than later can avoid other collection activities.
Divorce filings spike at the beginning of the year. Depending on how long it takes to obtain a final divorce decree, you may still need to file taxes together for a year or two. If you did not control the family finances during marriage, unpleasant tax surprises might come up in the divorce process.
Do you have a health savings account (HSA) through your health insurance? many types of policies now come with HSAs to cover out-of-pocket medical costs.