Tax Season – where the rubber meets the road. During the next 3 1/2 months, that we call tax season, the work we perform whether it is preparing individual and /or business tax returns and/or financial statements, the earlier you get your paperwork to your accountant the sooner you will get your results.
Additionally, those of you who are filling out Financial Aid Forms for children going to college, you must have either a completed tax return or a fairly close estimate much earlier than the tax returns are due, usually February 1 vs. April 16 .
If you have a refund coming to you, the earlier you file the sooner you get the refund (e-filing gets the refunds back sooner).
If you will be owing taxes and or retirement contributions, the earlier you know the amounts that will be necessary, the easier it is to plan and set aside the funds, save from current income or make arrangement for loans to cover the funds necessary to make the payments timely.
If you do not have the funds to pay youre taxes, file the returns on time. By filing the returns on time, you will only be subject to a late payment penalty 1/2 % per month plus interest versus a late filing penalty of 5% per month plus interest.