Income Tax Returns: Top 7 Reasons For Filing Them On Time

Income Tax Returns: Top 7 Reasons For Filing Them On Time

The top 7 reasons why you should not be late to file your income tax returns are discussed here.

(i) To avoid penalties for late filing

Delinquent taxes attract substantial penalties. These are in addition to the interest due for you.

(ii) To receive a better service from the accountant

The accountant will be able to begin your tax preparations sooner, if you can get all your paper work done earlier. Moreover, you can find lot of opportunities to implement strategies for saving on your taxes. But if … Read more at 2010 Tax.

Income Tax Returns: Top 7 Reasons For Filing Them On Time

The top 7 reasons why you should not be late to file your income tax returns are discussed here.

(i) To avoid penalties for late filing

Delinquent taxes attract substantial penalties. These are in addition to the interest due for you.

(ii) To receive a better service from the accountant

The accountant will be able to begin your tax preparations sooner, if you can get all your paper work done earlier. Moreover, you can find lot of opportunities to implement strategies for saving on your taxes. But if you are already late, then your accountant won’t be much help to you regarding this. Suppose there are some profits in your corporation subject to huge penalties; in such cases for late filing, the accountant might be hesitant retaining those profits.

(iii) To avoid criminal charges

In cases of not filing tax returns for many years, there may be criminal charges against you including tax evasion.

(iv) To prevent bankruptcy

In general, people who are unable to file tax returns regularly have poor business management. They are not up to date with their own accounting and bookkeeping; they just think that they know their financial position and how they’re performing. It’s the beginning of a financial calamity.

(v) To have a better relation with the tax authorities

The people who continuously file late come into the notice of the department of taxation. Disobedience might lead to audits, forcefully collecting taxes, or other legal activities. Moreover, in case you have a clean history of compliance and cooperation with the income tax department, then at times of need the tax department won’t hesitate to give extraordinary consideration to your matter and provide leniency.

(vi) To obtain finance

If you are unable to show your proper income portfolio, then it becomes difficult for you to obtain financing. The assessment notices provided by the tax department give more assurance to the banks regarding your income claims. Moreover, if you are not filing your present income tax returns, then how is it possible to know about your hidden tax liabilities? What is your own record-keeping state? Without good financial information, how are you running your business? In case you are asking for a loan, the bank might hesitate to offer it under these circumstances.

(vii) To lighten stress and worry

Most people feel guilty about filing the tax returns late. They are actually afraid of getting contacted by the tax authorities, auditing, seizing of properties, criminal prosecution, interests and penalties, etc. Whatever be the actual situation, these worries might worsen the matter. So file your income tax returns in a timely manner and save yourself some unwanted stress and worry.

The Process of Electronic Tax Preparation and Filing

The Process of Electronic Tax Preparation and Filing

Just when you are faced with the tax season, you may come across the latest editions of popular tax preparation programs claiming to make tax filing as easy as can be for any layman. It is important to know which one is the most suitable for you and which electronic tax filing solutions are the most popular. This write-up provides you with valuable information on tax preparation options and the popularity of electronic tax filing.

What is it that you pay attention to while choosing a tax preparation solution? Beginners should opt … Read more at 2010 Tax.

The Process of Electronic Tax Preparation and Filing

Just when you are faced with the tax season, you may come across the latest editions of popular tax preparation programs claiming to make tax filing as easy as can be for any layman. It is important to know which one is the most suitable for you and which electronic tax filing solutions are the most popular. This write-up provides you with valuable information on tax preparation options and the popularity of electronic tax filing.

What is it that you pay attention to while choosing a tax preparation solution? Beginners should opt for tax software that provides step by step guidance through the digital tax preparation interview and also includes interview topics which would not be difficult too understand or answer.

What makes the tax preparation software so useful is the fact that it allows the user to try out figures and hypothetical situations. Several of these programs are equipped with importing features that provides the scope for importing data from other programs into the tax preparation software directly.

As electronic tax preparation and filing are capable of carrying out extensive calculations and associated automatic checks, it has a negligible error rate, less than 1 percent. This implies that if you use the electronic tax preparation software, you can be almost fully ensure that you will have an error-free and complete tax return.

As high speed internet connections are becoming widespread and internet security is advancing at a tremendous speed, the number of tax preparations being done online is going up. This system of filing has been agreed unanimously to be safe, easy and error-free. With an overwhelming amount of online resources readily available, there is hardly any difference between the capabilities of the taxpayer and a professional.

Whatever it is, this much is certain that electronic tax preparation is the word of the day in terms of efficiency and popularity. It is owing to this popularity and reliability that taxpayers would resort to the use of tax software to file their tax returns. What a lot of taxpayers don’t know is that they can prepare and e-file their taxes every time they access the internet. The IRS Free File program has been designed to help those taxpayers who file their returns independently and still resort to filing paper returns. However, it should be noted that electronic filing is not allowed in the case of filing taxes for previous years.

Online tax filing allows you to prepare and e-file your income tax returns. And the process is wonderfully easy, speedy, error-free and safe, not very different from net banking. It might be a good idea to try out the electronic filing this year if you are willing to give it a shot. Being able to manage and file your taxes would definitely make you feel good and self sufficient.

It is very common for people to be scared of the idea of filing your taxes and you are probably wishing it would be easier this year. It is actually possible, with a fair amount of planning, to make tax preparation much easier and not be faced with any harsh surprises.