We’ve all done it before. We leave off filing our tax returns until the last minute. On Monday, April 18 2016, there will be the last minute filers scrambling through their mail for lost tax forms, and frustrated with their online services they thought would be so simple. Errors can come back with a vengeance and in the long run cost you more stress, time and money. For foreign nationals, tax preparations need to run parallel with current US tax laws and may require pre-assignment planning. Taking time to work with expert International Tax Advisors can help with this process.
Luckily, this year the IRS has granted us a few more days versus the usual April 15 deadline. However, that doesn’t mean we should procrastinate. This year, the IRS anticipates more than 150 million individual tax returns.
The faster you file, the faster you will be refunded
For those expecting generous returns, filing earlier could mean that your claim can be processed sooner and you can then receive your refund sooner. There is also no true guarantee that you will receive your refund right on time, so filing early can avoid further delay. This can also be beneficial to those who may owe money. This gives you more time to plan for and make payments toward your tax debt and other personal financial obligations.
Student Financial Aid
With the high cost of college, students are seeking the maximum financial aid possible. Taxpayers who have college students are advised to begin their application early to receive financial aid benefits that for some students may be the ultimate deciding factor to attending or staying in college.
Identify Errors and Fraud
Stealing taxpayer information is more prevalent that you may think. Falling victim to identity fraud is traumatic and every American’s worst nightmare. Beware of thieves that get a hold of personal information and steal your hard earned refund. The earlier you file the less room it leaves for fraud. The IRS prepares claims submitted, unfortunately even ones that are illegitimate. Errors can also be identified before they are submitted, and any missing information can be collected before the deadline approaches. It is important to consider all of these unfavorable situations to help buy time and have a more positive tax filing experience.
Business Owners Can Be Eligible for Tax Credits
All Businesses need to report earnings to the IRS. Take the time to research which credits may apply to your business. For businesses, in some cases tax credits are more valuable than tax deductions and can produce larger tax savings. For example, Work Opportunity tax Credit means that hiring veterans can earn you a tax credit depending on certain veteran circumstances. Other credits such as Healthcare, Employment or Research Development may also breed large tax savings.
Keeping Business and Pleasure Separate
Some lines are quite fine when it comes to transactions. The IRS may identify an expense as extracurricular. When these expenses cannot be deducted from your income, your tax liability is increased. Those who chose to file late end up struggling to separate and gather income and cash flow statements that help to prove your expenses follow guidelines. If businesses end up owing high amounts, the deadline for payment doesn’t change. Give your business some breathing room and file early to give yourself more time to plan payments.
If you are filing this year, Tax Solutions specializes in providing strong protection against identity theft while actively seeking deserved returns in IRS negotiations, tax planning and preparation. Our trusted and experienced agents will be sure to provide the best solutions! Here are some clients who wanted to share their experience.”