Many taxpayers fall into one of two categories—those who eagerly file their returns early (often to get their refund) and those who until the last minute to file their returns. Regardless of your situation, there are several benefits to filing your return as soon as possible.
The most obvious benefit of filing your return early is getting your refund faster. The IRS doesn’t pay interest for the right to hold your money, so you may as well get it as soon as you can.
Just make sure you have all of the paperwork you need before you file your return. Some forms aren’t sent out until February, and you should double-check that you’ve received all the informational tax forms you need to complete your return accurately.
Beat Potential Identity Thieves
The IRS has systems in place to catch identity thieves, but they aren’t effective 100% of the time. If someone files a return using your Social Security number before you do, your return will be rejected once you submit it.
This can also happen if someone else uses the Social Security number of one of your dependents on their return. When you file early on, you have a better chance of beating identity thieves to the punch.
Prepare for Problems
Filing early on gives you a chance to correct or work around any problems that can come up. Many types of problems may delay your return filing, such as:
- Your tax preparer is overbooked and you can’t get an appointment.
- You haven’t received a W-2 or other tax form.
- You can’t find a receipt or other financial record.
- Your return is rejected and you can’t figure out why.
These issues can usually be figured out with a little time and effort, but can cause a ton of stress if you don’t start your return until mid-April.
Find a Way to Pay
You may know that you’re going to owe the IRS money, so you want to wait until the last minute to file your return. Actually, you can file your return early, and you still don’t have to send full payment until the return’s due date.
This gives you some time to come up with the money. Maybe you can pick up some extra work, sell an asset, or get a loan.
If April 15th comes and you still can’t pay your taxes, you may be able to use one or more tax resolution strategies, such as an IRS installment agreement. Consult with a tax attorney to find an option that works for you.
Contact The Gartzman Law Firm to speak with an Atlanta tax attorney about your case. Request your consultation by calling (770) 939-7710.