With the filing deadline moving from the traditional date of April 15th to July 15th because of the coronavirus pandemic, it can be tempting to put off filing your taxes for as long as possible.
Most taxpayers dread the tedious task of compiling their financial records, tax documents and filing their taxes. Unfortunately, the longer you procrastinate doing your taxes, the greater the chances that something will go wrong.
And if you owe money to the IRS, the more penalties and interest you’ll have to pay. Often, it’s a better idea to file your taxes sooner rather than later.
Tax return fraud is one of the most common and fastest growing forms of identity theft. Basically, an identity thief steals your employment information and Social Security number - and files a fraudulent tax return on your behalf. Then, they steal your refund, or worse, put you in a hole owing back taxes you might not actually owe.
Unfortunately, once the IRS sends your tax refund out, it’s nearly impossible to get the money back without knowing the law and regulations. One way to avoid falling victim to tax fraud is to file your taxes as early as possible. That way, you reduce the chances of tax identity theft by filing before the identity thief gets a chance to file a fraudulent return.
Filing your tax return earlier makes it easier to fix any mistakes on your tax documents. For example, your employer might record the wrong earnings on your W-2. If you discover a mistake on your tax documents right before the filing deadline, you aren't going to have enough time to get the mistake resolved. Your tax return will end up getting delayed and you will have to go through the process of requesting an extension from the IRS, tacking on penalties and interests, that are compounded daily, to your tax liability.
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.
Therefore, 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 might have tax relief options.
IMPORTANT: I highly recommend readers reach out to me, Jim Liang, first. My clients never have to talk to the IRS, and tax resolution through my firm may 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. Reach out to our firm today for a consultation.
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.
Just get it over with so it's not hanging over your head! The peace of mind you get from not knowing where you stand with the IRS is worth it. It’s often not as bad as you think, even if you owe back taxes, having a firm like mine represent you can be worth it in the long run.
My firm specializes in tax resolution. I serve clients virtually so don’t hesitate to reach out. If you want an experienced tax resolution specialist who knows how to navigate the IRS maze, reach out to me to schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem.