With the Coronavirus pandemic affecting the entire country, the traditional April 15th deadline to file has been extended to July 15th. It can often be tempting to put off filing your taxes until the last minute.
There are many reasons why taxpayers procrastinate doing their taxes. From compiling tax documents and financial records to the actual filing of taxes, simply put– taxes are stressful and tedious. However, procrastinating on filing your taxes will only worsen your situation and increase the chances of something going wrong.
For example, if you owe the IRS then you will not only have to pay them the full amount owed but the penalties and interest as well. Filing your taxes as soon as possible is always the best option.
TAX IDENTITY THEFT
One of the most common and rapidly growing forms of identity theft is tax return fraud. Tax return fraud is when someone steals your Social Security number and employment information to file a fraudulent tax return under your name. After submitting your information, they will steal your refund and possibly worsen your situation by causing you to owe back taxes.
Unfortunately, it is almost impossible to get your money back without knowing the exact laws and regulations once the IRS has sent the refund out. Filing your taxes as early as possible is one way to avoid becoming a victim of tax fraud as it reduces the chance of an identity theft from filing a fraudulent return on your behalf.
FIND AND CORRECT MISTAKES SOONER
The sooner you file your tax return, the easier that makes it for you to spot any errors on your documents early on and fix them. For example, if your employer inputs the wrong earnings amount on your W-2 and you discover the mistake right before the filing deadline, then you will not have time to resolve this miscalculation. Instead, your return will be delayed and you will have to request for an extension from the IRS. The extension will come with additional penalties and fees that are compounded daily towards your tax liability.
YOU MIGHT OWE THE IRS MONEY
Quite often, many taxpayers underestimate their tax liability throughout the year. Unfortunately, that means those taxpayers underpay and end up owing the government. In addition to charging taxpayers a penalty for underpaying their taxes, there will be an interest fee on top of the taxes already owed. Thus, it is optimal to file and pay any remaining taxes in order to minimize your penalties and interests. If you aren’t financially ready to pay upfront, you may have tax relief options.
We highly recommend readers to reach out to our firm first. Our clients never have to talk to the IRS, and tax resolution through our firm can save you money and time in the long run. You might also be eligible for other relief programs or get your penalties and interest forgiven.
Our firm specializes in tax resolution. We serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem at 1-855-605-1500.