It is always a good idea to start and finish tax preparation way before the tax deadline, but since there are many unforeseen circumstances that can happen, some are faced with the dilemma of cramming their returns just to reach the deadline.
If you are someone who’s facing this situation, here are some last-minute tax moves to do:
Hire a Tax Professional
Filing taxes on your own means you don’t have to pay a tax professional like an Enrolled Agent (EA). However, this might come back and bite you eventually. There are instances in which you’ll need the expertise of a professional. For example, you will likely have some questions regarding credits and deductions or maybe even inquiries on how to go about some of the calculations. An Enrolled Agent continuously updates their knowledge to keep up with changing rules and regulations to be better at helping their clients.
Hiring a professional like them to handle your income tax preparation will give you peace of mind. Your tax professional can advise you on the best strategies for making sound tax decisions.
Review Tax Returns Carefully
Tax preparation requires a tedious amount of data entry. So, anyone who is rushing their returns can inevitably make a mistake. Check out one of our latest blogs to see more common mistakes on tax returns here: (insert link).
With this said, it is a good practice to have your returns checked twice or thrice before sending it to the IRS. Make sure there are no missing information, misspelling, mistypes on numbers, and math errors to avoid delays and penalties.
Request an Extension
File for an extension if you cannot file your tax returns on time. Filing an extension will prevent you from paying late-filing penalties as a consequence. The extension grants you additional time to file your tax returns only but not your tax payments.
Majority of taxpayers are now filing electronically. It doesn’t only save you a lot of time, but also ensures you file accurately and get a faster refund. It is also the eco-friendlier option because you won’t need to print and use papers anymore.
FAS focuses on providing financial insights that can help you and your business. If you need assistance with bookkeeping, business and/or individual income tax return preparation or cross-border taxes, feel free to contact us! Reach us at email@example.com or at 713-855-8035.