Responsible business owners know better than to wait until April to get their taxes sorted. Early tax-filers enjoy a lot of perks that could lead to better business and higher savings. Read on below to see if we can change your mind about filing your business taxes early this time around.
Say hello to early tax refunds
You can file your taxes as early as January and you will be rewarded by receiving your tax refund earlier than everyone else. You can use your tax refund to fund a vacation, your child’s college plan, or just add it to your lifetime savings. Your tax refund can provide you with the financial flexibility that you might need to make better business decisions.
To receive your tax refund even faster, you can opt to file your taxes online. Simply connect your bank account to your tax account and your refund can be deposited in less than 7 days. This is quicker than a regular tax filing process, which could take several months.
Gain additional savings by avoiding unwanted penalties or fines
If you don’t give yourself enough allowance to gather all the necessary receipts and paperwork, chances are something will come up to delay your tax filing process. This will warrant penalties or fines. You may also opt to file for an extension but this will also cost you more money.
If you have no choice but to file for an extension, first make sure that you don’t have any remaining balances with the IRS. Otherwise, you will be charged a hefty interest on top of the fee needed to file for an extension.
Stay on the good side of the IRS
Another important benefit of filing your taxes early is you can buy time to take care of any balances you still owe to the IRS. If you file your Form 1040 now, you have up to mid-April to pay off your balance. That gives you two months to work on your back taxes.
Your track record with the IRS matters because it determines what kind of taxpayer you are. Think of it as something like your credit rating. Secure a good reputation by filing your taxes early and this will ensure that the IRS stays off your back.
Get a head start on that loan
When you apply for a car loan, a home loan or a student loan, the agency will ask for a copy of your Form 1040. If you need to show proof of your income, the Form 1041 is the document to submit. Filing your taxes early will also make it possible for you to process your loans faster because you’ll have the necessary documents on hand when you need to submit them.
Safeguard your tax refund from identity theft
Anybody who can get a hold of your Social Security Number (SSN) can use this information to claim your tax refund. It is easier than ever to fake identities nowadays, so be careful when you release sensitive information such as your SSN. Identity theft crimes occur at the start of the year because cyber criminals know that most taxpayers have not yet claimed their refunds at this time.
Don’t let your annual tax return get stolen from you. Remember not to give away personal information to unknown persons and make sure to watch out for phishing sites on the Internet. If you can file your taxes and claim your refund early in the year, cyber frauds will have zero chances of robbing your refund.
Do you want to get a head start on your taxes this year? You may seek the professional assistance of a CPA. Ann Arbor CPA offers individual and corporate tax preparation services along with personalized consultation to help you manage your taxes and finances better. Stay ahead this year and contact us at 734-844-1614 today to learn more.