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4 Reasons To File Your Taxes Before It’s Too Late

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If I could look at your tax file
Without the IRS looking back,
Would you hire me?

If you’ve been filing your taxes for a while,
Then you understand they are due around
The middle of April, typically on the 15th.
(…It actually says Tax Day on Google Calendars…)

Did you know you can file as early as January 29th?
Now with that being said, let’s talk about some
Reasons why you should file your taxes early

  • Reduce Stress and Worry

Let’s be honest here, no one likes doing their taxes
And almost always push it all the way until the deadline.
(…which is April 15th of every year…)
In the back of your mind,
You know might have to pay a penalty.
That there’s a possibility you may be getting audited.
What about having your assets seized?

Needless to say, having your taxes done in an appropriate amount of time
Can definitely reduce some stress and concern

Which leads to my next point…

  • Late filing fees

It’s already bad enough that you have to pay taxes,
Why would you want to pay some more fees with those taxes?

“The late filing penalty is 5% of the additional taxes owed every month
(or fraction thereof) Your return is late, up to a maximum of 25%.
If you file more than 60 days after the due date, the minimum penalty is 
$205 or 100% of your unpaid tax, whichever is less.”

I don’t know about you but I definitely don’t want
To be paying more than I have to.

  • Obtaining financing

Are you starting a business?
Or just launched your start-up?

You’ll have difficulty obtaining financing if you can’t provide your
Financial institution with current income information.
Assessment Notices from taxation authorities give banks more assurance that the income claims you make are true.

As well, if you haven’t filed your current income tax returns,
What hidden tax liabilities exist?
What is the state of your record-keeping?
How do you run your business without adequate financial information?
Your bank may hesitate to loan you money
Or refinance under these circumstances.
These are some things to think about
When you are in a position to obtain any financing for your business.

  • Quicker return in refund

While the IRS is still getting back
To the swing of things regardless of the limited staffing;
State tax authorities are prepared
To process state income tax returns and to issue refunds.

Imagine if you filed your taxes on the early date, January 29th,
You would actually be receiving your refund
Right about the time you read this article was written.
(…yes it can be that quick…)

Now if you get easily distracted on getting organized
You can check out another post I made here.

It’s proven that if you file your taxes early
You are more likely to actually see a more
Positive return, than if you filed late.

IRS data shows that taxpayers who file by late-February get significantly larger refunds than those who file later—around $200 on average. (1,2)

On account that you know you are receiving a refund.
If you know that you are not receiving a refund,
Then this actually allows to speak with a professional
(…I wrote on who to look for here…)
And allows you to structure a plan of action to pay your taxes.

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