As the end of the year approaches, individuals and businesses go through a flurry of activity to prepare for tax season. Tax season, which typically starts on January 1st of every year, runs until the filing deadline of April 15th. The deadline for tax season can vary, so it is important to know the impending deadline and to file returns on time to avoid penalties.
The Importance of Filing on Time
Filing on time is important for avoiding a series of penalties that the Internal Revenue Service (IRS) can impose. Taxpayers who file late or fail to file at all are subject to a variety of fees, such as interest on unpaid taxes, late filing fees, and late payment penalties. It is important to note that the penalties for failing to file are typically much harsher than those for paying late, so it is crucial not to procrastinate on filing.
In addition to the penalties, there are other adverse outcomes of filing late or failing to file altogether. For example, the IRS can impose a tax lien on an individual’s property or seize assets, all of which can severely impact credit scores and make it harder to obtain credit in the future. Individuals who are unable to pay their taxes in full should still file on time and arrange for a payment plan through the IRS to avoid accumulating additional penalties and fees.
Knowing the Tax Season End Date
The tax season end date is not always the same, so it is important to know the deadline for the tax year in question. Most years, the deadline for federal taxes falls on April 15th, but this date can vary based on weekends, holidays, or other factors. The deadline for tax season may also vary by state, so you should confirm the deadline with your state department of revenue.
For example, in 2021, the deadline for filing federal taxes was extended to May 17th due to the ongoing COVID-19 pandemic. This extension was put in place to help taxpayers who were struggling to gather their financial information and file their taxes on time. However, it is important to note that while the filing deadline was extended, individuals who owed taxes were still required to pay their taxes by April 15th to avoid penalties.
How to File Taxes On Time
If you want to ensure that you file your taxes on time and avoid penalties, there are several key steps you can take. These steps include gathering all necessary financial information, determining the most appropriate filing method, and preparing your return ahead of time. Let’s take a closer look at each of these steps.
Gathering Financial Information
The first step in filing your taxes on time is to gather all the necessary financial information. This may include W-2s or 1099s from an employer or contractors, mortgage interest statements, investment income statements, and more. As you gather this information, be sure to keep it organized and in a secure location to prevent any misplaced or lost paperwork.
Determining the Most Appropriate Filing Method
Once you have all your necessary financial information, it is time to determine the most appropriate filing method for your situation. There are several ways to file your taxes, including paper forms, online tax software, and hiring an accountant or tax professional.
Online tax software is often the easiest and most user-friendly method for many individuals. These programs can guide you through the process of filing your taxes, help you calculate your deductions and credits, and alert you to any errors or inconsistencies in your return.
Preparing Your Return Ahead of Time
Finally, in order to ensure that you file your taxes on time, it is important to begin preparing your return early. Many individuals rush to file their taxes at the last minute, leading to mistakes and errors in their return. By starting early and taking the time to double-check your return before submitting it, you can help ensure that your taxes are filed accurately and on time.
In Conclusion
Filing your taxes on time is crucial to avoiding penalties and other negative consequences that can arise from late or missing returns. By knowing the tax season end date, gathering all necessary financial information, determining the most appropriate filing method, and preparing your return ahead of time, you can help ensure that you file your taxes accurately and on time. With a little planning and organization, tax season can be a smooth and stress-free process.
