Tax Prep during the Holidays? Here’s Why…

With the holidays upon us, one of the last things on your mind is filing your taxes for the upcoming year. While it’s understandable that you want to wait until after the holidays to prepare for taxes, now is an excellent time to start your tax prep process. If you’re still unconvinced, here is a list of a few reasons why it’s a good idea to start preparing for tax season even before it starts.

 

Extra Time

Have you ever tried to do your taxes yourself, thinking that you had everything you needed, only to find out that you needed more documents? Then you had to take extra time to find those documents, only to have to do something else like take care of children, pets, loved ones, or even just go to work? Life happens, and we can’t always anticipate what will happen the next day despite our best intentions. Starting your tax preparation during the holidays gives you extra time, even while life happens in the meantime.

 

Extra Time To Pay

Even though you may hope to get a refund, there are times when you have to pay instead and may not have the money to pay immediately. If you wait to file your taxes, you have a shorter deadline to pay, potentially creating financial and business stress. When you have more time between you and the deadline you can prepare yourself for the taxes due, and then you can determine why you owe, where your calculations and payments were off, and how to plan and make adjustments for the year ahead.

 

Faster Refunds

Nearly everyone, people and businesses, hope that they receive a refund rather than having to pay taxes, and almost everyone is impatient with the waiting time to receive their refunds. When you file early and electronically, you receive your tax refund faster than if you were to wait until later in the year when the IRS has hit a huge backlog and is processing millions of tax returns at the same time.

 

Less Stress

While it’s understandable that you would want to put off a stressful and unenjoyable task, procrastinating on preparing for your taxes only increases the stress you feel once you finally start preparing them. You might not have all your documents or receipts in place, and you’re much more likely to make mistakes when you’re frantically preparing your taxes at the last minute. The tax experts at Taurus CPA Solutions can help you by minimizing unwelcome surprises and reducing your tax liability.

 

Helps Prevent Tax Return Related Identity Theft

When someone steals your identity, they have access to your social security number, and if they have the tax identification code for your business, they have access to both your business and personal tax returns. Of course, they’re not going to pay your taxes for you, but if you have a refund, they will do everything in their power to ensure you don’t see that money.  The earlier in the season you file, the more likely you are to file before the con artists get their hands on your information.

 

Your Tax Expert Has More Time

If you work with a professional who does your taxes for you, they will have more time to work on your return if you get an early start. If you’ve ever had an appointment late in the tax season, you know you’re entering what might be a huge backlog of clients, instead of being one of the first in line for what is usually a first in/first out process of filing.  

 

Now is the time to get started on your taxes, but you don’t have to do it alone. Our savvy tax planners are here to help your organization with its tax preparation needs. Reach out to us today to learn more about our comprehensive tax preparation and planning services or to get in touch with one of our tax experts.