Many people do not look forward to filing their tax returns because they see it as a complex chore. Such people put off filing their tax returns until they can no longer postpone it (when the deadline is looming). This article discusses some crucial reasons why you should file your tax return at the earliest possible time.
It May Help in Divorce Settlement Disputes
You may be feuding with your former spouse in a divorce court because he or she thinks that you have some sources of income that you haven't declared before the court. You can avail your tax return to the court if you had filed it early. This will provide some proof that you are not withholding any assets or income during the proceedings to determine the divorce settlement.
It May Save You from Some Identity Theft Complications
Some people steal personal information taken from credit cards and social security numbers. They use that information to file fraudulent tax returns in order to get tax refunds that would have accrued to the legitimate person who bears the name they used to file the fraudulent return. You can survive being the latest victim of such identity thieves if you file your returns early. The thieves will try to file a fraudulent return and will discover that you had already submitted a return.
You Have More Time to Resolve Unforeseen Issues
Another key benefit of working on your tax return early is the opportunity it gives you to solve any mistakes or complications early. For instance, you can go into a panic if you realise (on the final day before the deadline) that you had picked the wrong forms to prepare your tax return. You may have used forms meant for a married person, yet you are a divorced head of a family, for example. The last minute rush may lead you to make errors, such as declaring less income than you earned. This can result in a query being raised by the tax authorities, and you may be prosecuted as someone who was evading taxes. You can avoid making those errors by preparing your tax return as early as possible. You will be able to rectify any mistakes without exceeding the deadline (and paying fines/surcharges).
You can contact an accountant for help on how to prepare your tax return by yourself. This newly acquired knowledge will empower you to become more positive towards preparing your tax return. You can also ask the accountant to prepare the tax return for you so that you learn by observing the entire process.Share