Above all else, it is inevitable that during the filing process, pieces of financial information may be difficult to identify or acquire. For this reason, it is crucial to allow yourself plenty of time to gather all of your financial information to avoid stressful situations as the filing deadline approaches. Be sure to look out for IRS announcements as to when they will begin accepting tax returns, as they can vary from year to year.
Filing early also offers these benefits:
Individuals who file their taxes early are more likely to receive their refund faster.
Extra time to pay on the taxes you may owe.
Avoids the hassle of filing for an extension.
Significantly reduces the risk of tax identity theft.
Consequences of filing your tax return late.
Filing your tax return late will introduce unwanted complexities and fees.
Penalties are charged when a taxpayer fails to pay and file taxes.
A late payment fee of .05 percent of unpaid taxes for up to 25 percent of unpaid taxes must be paid.
A maximum of 5 percent will be charged monthly for late filing and late payment penalties.
Charges will apply for filing late each month the return is late up to 5 months.
Even if a taxpayer files an extension, they still must pay 90% of owed taxes to avoid a late payment penalty.
These consequences are easily avoidable with proper planning. Working with a tax accountant can be a valuable tool to ensure your taxes are filed on time and correctly. Always remember to consult with your accountant to make a plan for the next tax season, or to ensure your individual filing efforts have been done so properly.