Tax season is always nuts, isn’t it? Whether you are filing a simple personal return, a complicated business return, or waiting until the 11th hour to receive all the documents you need, it’s always stressful and hectic. The thing about tax season is that everyone feels that way at some point, and everyone is rushing around trying to meet the exact same deadlines as you – whether that deadline is March 15th for businesses, or April 15th for individuals.
It’s for this reason that we say “timing is everything.” If you are in a position to file your taxes well ahead of the deadline, do it! Filing your taxes or any other important tax related documents, like extension requests, as soon as possible means you get to beat the rush. If you submit before things get crazy, your paperwork will be processed much more quickly, which often means your refund gets back to you faster, if you are owed one.
The mad-dash
There is always a mad dash to the finish line, and that goes for accountants too. They are hurriedly trying to ensure all their clients taxes get filed before the deadline, which makes for long days and an increased chance of errors. Errors on returns can be the difference between owing money and getting a refund, or the difference between a few dollars and a few hundred dollars on a return. Getting your documents to your accountant before they begin juggling a hundred clients at once is a good idea.
Penalties
Cringe! Late fees. It happens, but hopefully not every year. If you miss the filing deadline you may face a failure-to-file penalty, not to mention an interest penalty on any taxes owed that year. Interest is charged daily for outstanding taxes at the Federal short-term rate, plus 3%. Failure-to-File penalties, on the other hand, are charged monthly at a rate of 5%, for up to five months, on unpaid taxes. Yikes!
What are your options?
Well if you can’t get your filing done ahead of the rush, at least make sure you throw your hat into the ring during the rush. The good news is that if your accountant does make an error on your return, they are accountable for it – they are also accountable for ensuring it is filed before the deadline, so long as you drop off all the required information and supporting documents before the deadline.
Is that it?!
No! Thankfully you have one more avenue you can explore, and that is to file a tax extension request form. Available for online filing, these forms can give you an additional six months to file your taxes without worrying about penalties. Although you will need an estimate to determine if, and how much, you owe on your taxes. Unfortunately, the extension does not apply to your payment deadline, only your filing deadline.
If you want to get a jumpstart on your taxes by filing for an extension request, check us out at FileLater. We have everything you need to get your extension filed online, quickly and accurately.
