Why Filing Your Taxes Late is just Bad Business

As Americans enter tax season, procrastination sets in as April 15th seems appears off into the distance. If you are accustomed to waiting until the last minute to file your taxes, you may want to rethink that strategy.

The first important reason to avoid filing late is that you may incur penalties. These can be substantial in some cases and they continue to accrue as time goes on. You may even be responsible for interest charges.

If you want your taxes completed timely, it is always best to file them early with your tax preparer. That way they are more likely to have the time to take care of your returns and find the appropriate deductions for you. Filing late may cause your accountant to avoid retaining profits for your corporation if they will be penalized due to a late filing.

Another important reason to file on time is that you risk criminal charges. Filing late can result in criminal charges for serious offenses of tax evasion, which will cost you legal fees, fines and possible jail time.

Procrastination on some levels is acceptable when discussing mundane items like an oil change for your car or doing laundry, but when it comes to serious financial issues such as a tax filing, procrastination can get you into deep trouble. If you are not abreast of your financial position at any given moment, you not only risk missing a tax filing date but you could also be setting yourself up for other financial surprises.

If you are seeking ways to avoid a tax audit, you should definitely stay away from filing late. Audits, legal proceedings, and aggressive action by tax collectors are common results when businesses file their taxes late. If for some reason a hardship requires that your business seek relief or leniency from regulators, you will have a difficult time of success if you have a history of late filing. Those with an impeccable tax filing record are more likely to receive consideration from tax authorities so always file on time or early.

Another unintended consequence of late tax filings may relate to your firm’s ability to obtain financing. When you apply for financing, you will need to provide current income information and if your tax returns are not ready, the lender may be concerned about your business operations.

One final reason to file on time is to reduce your own level of stress and worry. Once your taxes are filed, you can easily move ahead to focus on growing your business.

If you are looking for a tax preparer for your business, call us at iRefund Tax Group and we can put our 20 years of tax preparation experience to work for you.