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Topics: Tax, Tax outsourcing, Tax prep support outsourcing, Tax preparation, Tax preparation outsourcing, tax preparation services for CPAs, Tax season

3 Reasons Why It is a Bad Idea To Wait Until the Deadline to File Your Income Tax Returns

3 MIN READ | Posted on November 29, 2022
Written By Divya Ramaswamy

3 Reasons Why You Should Not Wait for The Deadline to File Your Income Tax Returns

Imagine: You wake up one morning in a panic because the income tax filing deadline you’ve been chipping away is just a few days away.

You need more time to prepare and don’t have all the necessary documents and details handy either. You anticipate a heavy penalty and delayed tax returns and flounce!

Now envision this: The tax return filing deadline is a few months in the future. Isn’t that a relief, considering you have so much more time?

But wait before hitting that snooze button. It would help if you took adequate measures to file early, or the first scene you just imagined might come true.

20-25% of Americans wait until the last two weeks before the deadline to prepare their tax returns. And all that can be done at the last minute are to file their taxes pronto or request an extension.

The implication of late filing includes heavy penalties. But that’s not all!

Experts say it is best that taxpayers don’t wait until the last moment to file their returns, given how it might lead to chaos and confusion alongside tech and internet issues. Read on to learn some important reasons why waiting until the last minute to file tax returns is a bad idea.

Reason 1: Avoid mistakes

The biggest issue with tax returns is most often the simplest to prevent, given how they occur due to carelessness in the first place. In fact, even the simplest mistakes or missing information can delay a refund. Math errors, wrongly entered numbers and details, and failure to sign or date the tax returns are some of the most common mistakes during last-minute tax filing. It is easier to notice blatant errors when they have a look at something at a later point in time. Even tech glitches like a system failure or a server issue might elevate your chances of errors. And during such mishaps, you don’t have enough time to remedy the situation, which might result in a late filing.

Reason 2: You won’t have enough time to come up with any money you owe

Most taxpayers are blindsided by their tax bills, and when they wait until the eleventh hour to file their taxes, they are short-changing on time. The sooner one files, the sooner will they understand if and how much they owe. That information can help them plan to save for the bill and reduce the need to take out a loan to cover it.

Reason 3: Not only will your tax refund be delayed, but you might miss out on getting the maximum

Given how tax laws keep changing and how there are unexpected tax deductions and credits often, there are chances you might get a tax refund bigger than you expected. Life changes like having a child can also lead to huge tax deductions and credits, including child tax credits. Moreover, if you are expecting a tax refund, filing your taxes at the earliest to avoid delays is best. If you have spending plans for your tax refund, delaying could become an issue. The IRS expects to issue nine out of 10 refunds within three weeks or less of acceptance when you file electronically with direct deposit.

Plan ahead with QXAS’ Outsourced Tax Preparation Services

It is never too early to prepare for the tax-filing season ahead. With QXAS’ tax preparation offshoring services, your client’s tax returns will be filed on time, avoiding mistakes and ensuring maximum refunds at the earliest.

Book a Free Consultation

Looking to delegate your CPA firm’s tax preparation requirements? We can help! Hop on a phone call with us immediately to get started with our outsourced tax preparation services for CPA firms now.

Originally published Nov 29, 2022 06:11:06, updated Dec 19 2022

Topics: Tax, Tax outsourcing, Tax prep support outsourcing, Tax preparation, Tax preparation outsourcing, tax preparation services for CPAs, Tax season

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