There’s really no way around it, filing your taxes can be stressful. There’s the possibility that you don’t get a big refund or that you may even owe the government money. Not to mention, filing taxes as a business can get complicated quickly. If you’re worried about filing your taxes, we understand. However, it doesn’t have to be that way. In fact, there are several benefits of filing your taxes early that you may not know about. If you’re actually wanting to get the most out of tax season, then you should be proactive. Here’s why:
- Avoid Fraud
- Reduce Stress
- Plan Properly (can gather items)
- More Time for Paying IRS
- Don’t Worry About the Rush
- Catch Mistakes
Avoid Fraud
Did you know that people can steal your identity and file a false tax report in order to get your return? It’s true, tax return fraud can happen to anyone. This is because somebody steals your identity and files an entirely false report to maximize getting a refund. Not only does this mean that your identity is stolen, but that your taxes are not accurate, forcing you to sift through multiple layers of proving your innocence and then trying to file the correct tax return. One of the many benefits of filing your taxes early is that you get to beat criminals to the punch. They can’t file a fake tax report in your name if you’ve already done it.
Reduce Stress
Oftentimes, people are worried about their tax situation. They don’t know if they are going to get a return or if they’re going to have to owe the government money. Unfortunately, this causes them a lot of stress and worry. Then, they put off doing their taxes, which could result in penalties or even more stress. Instead, make use of the benefits of filing your taxes early. Being proactive can help you feel in control of your tax situation whether you’re filing for yourself or your business. Essentially, you’ll have a game plan for your needs. You can work with a CPA to help you get ready for tax season.
Plan Properly
Knowing that you are planning on filing your taxes early can help you better prepare for tax season. This can give you the time to gather documents for filing your taxes, recognize whether or not you need a tax servicer, and save money should you owe taxes. Not having a plan and avoiding doing your taxes is going to accrue a hefty penalty. Don’t let this happen to you, have a game plan.
More Time for Paying the IRS
If you do know that you are going to be paying taxes, then you will definitely want to try and file your taxes early. Why? One of the many benefits of filing your taxes early is that it will give you more time to save up money and possibly pay off those taxes. For instance, you could file your taxes at the earliest available date, but have a large sum of money to pay to Uncle Sam. Instead of finding out this information at the end of tax season, you know it a couple of months before the deadline. This means that you get a couple of months to pay off those taxes and get ahead of the curb instead of scrambling around. If you can’t pay the balance in full by the deadline, the IRS also has a payment plan for businesses and individuals alike.
Don’t Worry About the Rush
When it comes to high-earning individuals a lot of money may be tied up in assets, stock portfolios, or other assets. This can complicate your taxes. You’ll often need time to find the necessary documents and work with a licensed CPA to make sure you get the best deductions for your taxes. Whenever you file your taxes early, you can beat the rush that normally comes at the end of tax season. You won’t have to sacrifice time and you can do things right. Importantly, you can make sure that you maximize your deductions.
Catch Mistakes
Because you have this extra time, you can make sure that you don’t have any tax problems for your business. You don’t want to make a mistake on a document or try to rush through your taxes and end up making a mistake. Even with a licensed CPA firm, you can take time to comb over assets, provide the necessary documentation, and be ready should you be audited. However, the benefits of filing your taxes early help you be prepared for whatever life may throw at you!
Do you want to get ahead of your financials this tax season? Want to get the most out of your tax situation? There’s only one place you need to call. Sheffield, Trackwell, and Rapp. We have the accountants and tools to make sure you can take charge during tax season! Contact us today to find out how we can help you!
