For many taxpayers, March is the last calm before the storm.

Once April hits, the pressure builds. Deadlines, documents, and decisions can pile up quickly, especially if you’re still chasing down paperwork or waiting on a CPA appointment.

That is why March is one of the most powerful months for proactive tax planning. It gives you enough runway to finish strong and file strategically.

Here’s what you should focus on now.

Confirm What You’ve Already Received

Before you get overwhelmed by what is missing, start with what you already have.

By mid-March, most tax forms should have been delivered. That includes:

• W-2s from employers

• 1099s from contractors, investments, or banks

• Mortgage or student loan interest statements

• Retirement income or contribution documents (1099-R, 5498)

• Brokerage statements for gains and losses

Organizing these now ensures you’re not duplicating efforts or missing a key line item later.

Watch for the 1042-S Filing Deadline

If your business works with non-U.S. contractors or vendors, the IRS requires you to file Form 1042-S by March 15.

This form reports income paid to foreign individuals or entities and is essential for staying in compliance. If this applies to your business, now is the time to verify payment records, classifications, and withholding documentation.

Waters Hardy works with clients who have complex reporting needs, including international structures, and can assist in preparing and reviewing 1042-S forms.

Check Your Withholding and Estimated Payments

Even if you’re not quite ready to file, March is a good time to look at how your withholding and estimated payments align with your actual tax liability.

Many people are surprised by underpayment penalties or large balances due. Not because they made mistakes, but because they did not adjust for income changes during the year.

Common triggers include:

• A raise or bonus

• Switching from W-2 to 1099 income

• Investment gains or stock sales

• Underwithholding on retirement withdrawals

A quick projection now can prevent surprises in April.

Know When to File and When to Extend

If you are still missing key documents or dealing with a complex financial year, an extension might be the right move.

But remember, an extension to file is not an extension to pay. You still need to estimate your liability and submit payment by April 15 to avoid penalties and interest.

Filing early, however, is almost always better. It gives you:

• Faster access to refunds

• Time to correct any issues

• Peace of mind when it matters most

Digital Filing Is Now the Standard

About 89 percent of tax returns are now filed electronically. It is fast, efficient, and reduces errors. The IRS continues to encourage e-filing, especially in light of delays that can still affect paper returns and mailed payments.

Waters Hardy files all returns electronically and uses secure document portals to protect your information and speed up communication.

The Bottom Line

If you want to feel confident in April, March is your best opportunity to prepare. Whether you need help gathering documents, estimating payments, or meeting a specialized filing requirement, our team is here to help.

The earlier you plan, the more options you have. The smoother the season will be.

📅 Ready to get started? Contact Waters Hardy to schedule your tax review today.