Filing your income tax return on time is essential to staying out of the cross hairs of the Internal Revenue Service. Filing your income tax return early and on time will avoid unnecessary penalties that are levied by the IRS. Here are the Top 7 Reasons To File Your Income Tax Returns On Time.
The penalties for not filing your income tax on time can be quite steep and can compound monthly for every month not filed. These fees can add up very quickly. The penalties are in addition to any interest on your unpaid income tax that may be due.
Accountants love it when you present your financial records for your income tax preparation early. It makes their life so much easier! The earlier you can provide your accountant/tax preparer with your information, the quicker they can file your income tax return with the IRS.
The earlier you get your paperwork to your accountant, the sooner he can start preparing your tax returns. More importantly, there will be more opportunities to explore and implement tax saving strategies. On the other hand, if you file late, you tie your accountant’s hands. For example, he may hesitate to retain profit in your corporation if such profit will be subject to substantial penalties.
If you do not file an income tax return, you could face criminal charges of tax evasion.
The main reason why people do not file their income tax return is due to the lack of organized tax and business records. This hold true both for the individual and business owners. The lack of accurate and complete tax records often means that their financial records do not balance and will many times lead to financial disaster.
Filing your federal income tax return late draws attention from the taxation departments of the IRS. Failure to file, and late filing can result in an IRS audit, aggressive collection action and legal proceedings.
If you are unable to provide a history of income, you may find it difficult to obtain financing. Assessment notices from the IRS provide financial institutions that your stated income is accurate. If you fail to file your income taxes, you become susceptible to inquisition and skepticism. You could be hiding additional financial liabilities that would make you a financial risk for financing. Your bank may be reluctant to loan you money when you file late, or do not file your income taxes.
If you need help in filing your federal income tax, let us help. Call us today at 713-661-1040 for a FREE tax evaluation and make sure that your income tax preparation is completed on time by J.M. Trippon & Company CPAs.