Tax season is approaching and when it comes to filing taxes, sooner is always better than later. Prompt handling of taxes can be rewarding and this article will highlight the many advantages associated with filing taxes as early as possible.

Saving Money on the Costs Associated With Filing

Prices for filing taxes (both online and in-person) are typically much less expensive in January than they are in April. As Tax deadline approaches, many accountants and tax filing software companies will charge a premium for handling last minute taxes.  

Late Fees Associated with Filing After the Deadline

The IRS charges an interest rate of up to 5% for every month that a person is late filing their taxes. An extension is obtainable, however, one may only be granted an extension if the request for the extension was filed prior to the tax deadline.

Avoid Identity Theft

In 2015, The IRS rejected or suspended 4.8 million tax returns that they believed to be suspicious. Tax Return Theft is a preeminent target for identity thieves. Thieves who have access to one’s personal information can file illegitimate tax returns and steal return funds. The best way to combat Tax Return Theft is to file early. Filing in January or February will minimize the amount of time that thieves have to access one’s personal information, thus minimizing risk.

Extra Time to Payoff Taxes Owed

Many people prefer filing early because it allows them the advantage of knowing exactly what they’re going to owe well before the filing deadline. Regardless of when a person files their taxes, the deadline is still mid-April. Filing early allows for extra time to pay off taxes in installments or extra time to make arrangements, as opposed to being surprised and forced to scramble due to waiting until the last minute to file.

A Speedy Return

The final reason is probably the reason that resonates with the most people. Prompt filing of taxes is the most efficient means of ensuring a speedy tax return. For those who would like to take advantage of a swift tax return as well as all of the other advantages that this article has highlighted, I recommend filing as quickly as possible. the IRS begins accepting tax returns in mid-January.

At 7M Business Solutions, we help our clients by providing them a with a clear understanding of what to expect and a roadmap of when taxes are due. Contact us today to learn how we can help you save money!