It’s that time of year again – tax season. The IRS deadline for filing 2023 tax returns is April 18, but there are multiple advantages to filing electronically as soon as possible. Early filing can protect you from tax-related identity theft, where a scammer files a fake tax return using your Social Security number (SSN).
Filing your taxes early may appear to be an unnecessary hassle, but for tax filers, it’s more like receiving an early holiday gift.
Early returns provide several advantages:
– You get a jump on getting a refund.
– Your return is processed more quickly.
– You don’t have to deal with the stress of waiting until the last minute.
-Submitting returns without completing instructions
-Not being required to fill out W-2 or 1099 forms
-Filing tax returns jointly
-Avoiding identity theft
-Avoiding an IRS penalty of $100 for failure to file
-Helping avoid problems with tax-preparation software
However, not everyone can take advantage of these benefits. Waiting till the last minute to file your taxes can mean missing out on free tax preparation help or filing an extension.
Every year, millions of people
face tax season without filing their taxes.
Other benefits of filing early and electronically include:
Quicker Refund: By starting early and electronically, taxpayers can return nearly 30 percent faster than those who wait until April.
In addition to receiving refunds faster, taxpayers who file early lose less to postal delays. Because the IRS can deposit refunds directly into bank accounts, taxpayers who use direct deposit don’t have to deal with lost or misdirected checks.
Early filers also are treated fairly by the IRS. Every taxpayer pays the same late-filing penalty, regardless of when they choose to file, because penalty calculations are based on the date of return.
No need to seek a Filing Extension:
The importance of planning ahead cannot be overstated when it comes to filing taxes. Failure to plan ahead may result in a missed filing deadline, a fine, or even worse, an IRS audit. If an individual does find themselves in this situation, they should contact a tax professional right away. To save money, many taxpayers choose to file their taxes electronically. However, if an individual is unable to submit their taxes electronically, they can still contact a professional and have someone else file their taxes on their behalf.
More Time To Apply For An Installment Plan:
Failure to pay the full amount of taxes due may result in significant IRS penalties. It is recommended to file early as it may enable individuals to request an installment payment arrangement with the IRS, thereby decreasing associated penalties and interest charges.
It’s Easier to Get Help:
Individuals seeking professional assistance in preparing and filing their tax returns should do so in February or early March to ensure the greatest availability of resources prior to the filing deadline.
Engaging a tax professional can assist you in completing your tax return accurately and efficiently. Additionally, electronic filing offers greater security and quicker processing, allowing you to have your refund deposited into your bank account before many other taxpayers have even started their filing process. Act now to take advantage of this opportunity.