If there is one time of the year that can cause you to stress, its tax filing season. After all, no one wants to see if they owe Uncle Sam any money. However, it is critical that you do file your taxes on time. That’s because delaying or avoiding your tax filing could open up a whole new bag of trouble. Even if you haven’t filed your taxes for 2019 or 2020, MBA Financial & Accounting Solutions can help you with your filings, no problem! Let’s take a look at the importance of filing your taxes on time.
Avoid Paying Added Interest And Penalties
If you are late filing your taxes, you will have to pay a late filing fee. Currently, this fee is 0.5% of the unpaid tax each month. That means that the longer you wait to file your taxes, the more you could potentially have to pay. Also, you will have to pay any interest on the taxes that you owe. Currently, the interest owed fee is .25% per month.
Avoid Losing Future Refunds
If you file your taxes late, it could affect your ability to collect your refund in the future. That’s because the IRS will deduct any refund that you are owed to pay for any taxes from past years. If your tax refund is important to your budgeting, then you will want to make sure that you pay your taxes on time.
Safeguard Your Credit
Finally, you will want to make sure that your credit score is protected. If you are late filing your taxes, you could have a lien placed on your property. A lien is known as a “derogatory notice” on your credit score that can have a high negative impact. With a lower credit score, you can have a hard time getting approved for credit cards and may get rejected for a home or an auto loan.
How To Ensure That You File Your Taxes On Time
The best way to ensure that you file your taxes on time is to know when your tax filing is due. Usually, Federal taxes are due around April 15 of each year. However, the date may change due to major catastrophes such as natural disasters or a Federal order.
Did You Know That You Can Also Request An Extension
Even if you can’t file your taxes on time, you should request an extension. This will give you extra time to organize and file your taxes. You can request an extension by printing and mailing Form 4868: Automatic Extension of Time To File U.S. Individual Income Tax Return. You can also e-file your extension request using the IRS Free File service. With the extension, you will have until October 15 to file your taxes.
Keeping Up To Date On Your Taxes
Filing taxes is an important part of your finances that should not be ignored. Be sure to file your taxes on time each year. If you can not file your taxes on time, be sure to request an automatic extension from the IRS.
Filing taxes is indeed stressful as is, and adding the fact that most Americans have not filed their 2019 or 2020 can add even more stress to filing late. MBA Financial & Accounting Solutions have been guiding individuals and businesses who have not filed taxes. Our tax experts can make sure that you receive your stimulus checks, file your taxes, and have the peace of mind of being able to stay up to date with your tax filings. Contact us today at (800) 576-5746 for a FREE consultation.