There is no escaping the requirement to file an annual tax return for millions of Americans. In 2020, taxpayers got until July to prepare and file their tax returns by the IRS due to the COVID-19 pandemic.
Another lengthy extension has not yet been granted this year, however, you will have up to April 15, before being required or considered late in submitting your tax forms.
What’s more, it can take until Oct. 15 for those seeking an extension to file their documents even though any taxes owed are already due in April.
Filing soon this year means February. On Feb. 12, 2021, the IRS began taking returns for the 2020 tax season. Just because you can hesitate to submit, though, doesn’t imply you must.
Early filing will mean a more precise refund, sufficient time to pay a tax bill, and a lower risk of becoming a victim of identity fraud related to taxes. Plus, there is no need to wait for those with straightforward tax returns.
Any February filing is generally deemed early.
Keep reading to learn why early filing should be considered, what documents you may want and how early filing avoids tax identity theft.
Advantages Of Early Tax Filing
There are many reasons for early completion of tax returns instead of waiting until Tax Day:
- More specific returns could lead to more significant refunds.
- Limited competition with tax professionals for appointments.
- Enough time to arrange on paying taxes.
- Less risk of theft from taxes.
Individuals who file early could also be in line for a bigger refund. This could be because those filing around the tax deadline are always hurried to finish their paperwork and important deductions or credits may be overlooked. If you do it in a hurry, items are often missed.
Finalizing tax forms ahead, gives time for all who owe money to the IRS to prepare how to pay the bill. Even if a tax return is filed early, reimbursement is not due until this year’s tax day, which is April 15.
In the final weeks prior to the tax filing deadline, appointments with tax practitioners can be difficult to come by. Having an early appointment would suggest that you can meet at a reasonable time, and your return won’t have to fight for the attention of your tax preparer.
However, financial advisors say one of the main reasons to file as soon as possible is to stop tax fraud.
To generate fake returns and file them fast in the tax season, fraudsters use stolen Social Security numbers. If the IRS does not mark them for review, the return is approved, and a refund is allocated.
Then, the machine refuses it when the rightful taxpayer attempts to file their return. The effect may be a lengthy procedure in which it is required to complete an affidavit, provide supporting evidence and file a paper return.
Filing your return as soon as possible through tax preparation Denver professionals is the safest way to stop becoming a casualty of tax identity rip-off.