With the filing deadline moved to July 15th, you may have put off filing your taxes for as long as possible. Maybe you even requested an extension for October 15th. Most taxpayers dread the tedious task of compiling their financial documents and filing their taxes. Unfortunately, the longer you procrastinate, the greater the chances that something will go wrong. No matter the deadline, it’s always smarter to file your taxes sooner rather than later. Here’s why:
Help avoid tax identity theft. Tax return fraud is one of the most common and fastest growing forms of identity theft. In a nutshell, an identity thief steals your employment information and Social Security number, and files a fraudulent tax return on your behalf. They can steal your refund, or put you in the hole owing back taxes you might not actually owe. By filing your taxes as early as possible, a thief won’t have the chance to file a fraudulent return.
Find and correct mistakes sooner. Give yourself more time to fix any mistakes on your tax documents. For example, your employer might record the wrong earnings on your W-2. If you discover the mistake right before the filing deadline, you aren’t going to have enough time to get it resolved. Your tax return will end up getting delayed, which can result in having to request an extension and accrue penalties and interest.
Pay smaller penalty fees. Unfortunately, many taxpayers underestimate their tax liability during the year. That means they underpay and end up owing the government money. The IRS charges taxpayers a penalty for underpaying their taxes, as well as interest on the amount of taxes that they owe. So the sooner you file and pay any remaining taxes, the smaller your financial penalty and interest will be. If you can’t pay up front, you may have tax relief options to help you settle your debt.
Get it over with. There’s no better tax relief than just finally taking care of your taxes. If you are one of the many taxpayers that get stressed over taxes, you will actually feel better if you don’t procrastinate filing your tax return. Even if you owe back taxes, having a firm like ours represent you can be worth it in the long run.
Magone & Company specializes in tax resolution, and we’re experts in navigating the IRS maze. Reach out to our firm at (973) 301-2300 to schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax challenges.