Although no one is comfortable with the COVID-19 pandemic that we’ve all been experiencing, procrastinators everywhere breathed a collective sigh of relief when the IRS extended the federal tax deadline from April 15 to July 15 this year. Business owners now have more time to get their records together and get them to their accountants. Many taxpayers will hold off on filing their taxes until the very last minute, midnight on July 15.
However, there are several benefits to filing your taxes now instead of waiting until the last minute.
Reasons to File Now
Businesses that wait until the last minute to file taxes this year may be missing out on some benefits. Some are obvious, and some not as much so. But give these points some consideration before you make the final decision.
Reason 1: You’ll get your refund sooner.
This is one of the obvious ones and the most significant. Why wait any longer to get money back than you have to? The sooner you file, the closer you’ll be to your refund. According to statistics from the IRS, about 72% of tax filers received a refund last year, averaging around $3,000. Given the current economic climate for most small businesses, having these funds sooner than later could give your financial situation a substantial and much-needed boost.
Reason 2: You may not realize you’re getting a refund.
Many small businesses hold off on the tax preparation process because they assume they’ll owe the IRS money. But often, by the time they take into account any tax deductions and tax credits that they’re eligible for, they end up getting a refund instead. This is always a pleasant surprise. If you’re a procrastinator, you won’t know the real score until you get your tax documents together and get them to your accountant.
Reason 3: You might forget something important.
When you do anything in a rush, it’s common to get a little sloppy. Tax returns are no exception. When it comes to doing your taxes, the last thing you want to do is rush through them, and then find out you’ve missed something important. This error may cost you not only the time it takes to revise the tax return, but money as well, if the omission results in penalties of some kind. Get your taxes done now while there’s still plenty of time to do them correctly and avoid costly mistakes.
Adams Accounting Solutions Specializes in Small Business Taxes
At Adams Accounting Solutions, we understand that getting your taxes done isn’t your favorite thing to do. But we do want you to get them done so that you get all the benefits of filing early. We specialize in accounting for small businesses, and we’ll get your taxes prepared and filed for you as quickly as possible. Give us a call for more information or to schedule an appointment.
