There are a lot of people out there who just flat out don’t like filing their taxes and because of this they put off the task until the very last minute. While I can understand why a lot of people aren’t exactly excited about filing, i also realize that there are a lot of penalties and troubles that you can come across if you wait until the last minute. Waiting until the last minute won’t make the problem go away, in fact, it will actually worsen the problem. Let’s go over some of the reasons why you shouldn’t put off filing your taxes.
Missing Out On the Details
When you wait until the very last minute to file your taxes, you’re also increasing the odds of not having the proper documents that are necessary to file. This can be very frustrating and you can face a number of problems because of this. It may actually be too late to get a replacement document for the one you’re missing, and if you have to rush to get a new document instead of finding the original, you are going to have to pay more often than not. If you try to file without all of the proper paperwork, you also run the risk of your return getting denied.
Costs Will Increase
There are plenty of professional tax preparers out there who are happy to take your business around the tax season, but as the deadline draws nearer, there are less and less to choose from. When you wait until the last minute, you can also expect to pay much more for these professionals to file your taxes. Although you may get a more thorough return this way, it will be redundant as you’re paying more in fees. You might even have to pay more due to interest if you take your sweet time filing.
You Will Lose Out On Benefits
Because you’re late to file your taxes, you may also forget to put in crucial details that can be the difference between owing the government and being presented with a nice check. If you still manage to get something back, you can expect the ending amount to be much lower than you would if you were prepared to submit a thorough return. Because the likelihood of making an error is rather high when you wait to file, your late filing can also stand out and make you more likely to be audited, which is never fun.
I do realize that it can be a bit of a pain to file your taxes, especially if you’re likely to owe, but you can save yourself a lot of headaches by getting it over with and doing it right. Make sure that you always prepare ahead of time so you don’t have to cheat yourself of money that you could be putting back in your pocket.
Frank Evora has experience with BVI offshore companies and has worked with several law firms in the past 20 years.