Last Year's Report Card

The October 15 tax extension deadline just passed. For most individual taxpayers who filed an extension, the 2025 filing season is officially behind them. 

But I've worked with clients who thought they were done, too. Then an IRS letter showed up with a balance due they weren't expecting. 

My first advice? Review the notice and pull their IRS account transcripts. Before reacting, we needed to understand what the IRS was actually showing. And it reminded me of something: 

Your tax return is last year's report card. 

Most people file it and move on. But your return tells you how your income was reported, what deductions you claimed, and what you ultimately owed. 

And with about ten weeks left in 2026, there's still time to use that information. Pull out your 2025 return and ask yourself:  

What did I owe, or get back?  

Was it what I expected?  

How much of my income went toward taxes?  

Do I understand why?  

What surprised me?  

What can I do differently before December 31? 

There's another reason to pay attention. Your tax return doesn't just matter to the IRS. 

If you're self-employed and planning to buy a home or obtain financing, your returns can play an important role in how lenders evaluate your income. 

It's better to understand what those numbers say before someone else starts reviewing them. And if you haven't filed yet, avoiding the issue won't make it disappear. Getting your records and IRS transcripts together is a good place to start. 

So here's the bigger point. Tax preparation tells you what happened. Tax planning helps you decide what to do next. 

If your income has changed, your business has grown, or your financial situation looks different, now is the time to review your withholding, estimated payments, and year-end planning opportunities. 

The goal isn't just to finish another tax return. It's to understand what that return is telling you. Because last year's return tells you what happened. 

What you do with that information can help determine whether next year looks any different. 

J&C Briefs | Joachim & Co. 

Tax. Business. Money. Explained.