Top 7 Reasons To File Your Income Tax Returns On Time

Top 7 Reasons to​ File Your Income Tax Returns on​ Time
Here are seven reasons for not being late filing your income tax returns.
1 .​
Avoid Late Filing Penalties
Late filing can result in​ substantial and continuing penalties .​
This is​ in​ addition to​ any interest that is​ due.
2 .​
Receive Better Service from Your Accountant
The earlier you​ get your paperwork to​ your accountant,​ the​ sooner he can start preparing your tax returns .​
More importantly,​ there will be more opportunities to​ explore and implement tax saving strategies .​
On the​ other hand,​ if​ you​ file late,​ you​ tie your accountant's hands .​
For example,​ he may hesitate to​ retain profit in​ your corporation if​ such profit will be subject to​ substantial penalties.
3 .​
Avoid Criminal Charges
Of course,​ if​ you​ don't file tax returns at​ all for a​ few years,​ you​ may also face charges of​ tax evasion.
4 .​
Prevent Bankruptcy
Generally speaking,​ persons who don't file tax returns on​ a​ timely basis also lack adequate records for managing their business .​
Since they don't keep their bookkeeping and accounting up-to-date,​ they only think they know how they're doing and how they stand financially .​
This,​ of​ course,​ is​ a​ recipe for financial disaster.
5 .​
Enjoy Better Relations with Tax Authorities
Late filers also receive the​ unwanted attention of​ the​ taxation departments .​
Non-compliance can result in​ audits,​ aggressive collection action and legal proceedings .​
In addition,​ if​ you​ ever do have extenuating circumstances that might call for some leniency or​ extraordinary consideration on​ the​ part of​ the​ tax department,​ you​ are more likely to​ receive it​ if​ you​ have a​ flawless history of​ co-operation and compliance.
6 .​
Obtain Financing
You'll have difficulty obtaining financing if​ you​ can't provide your financial institution with current income information .​
Assessment Notices from taxation authorities give banks more assurance that the​ income claims you​ make are true .​
As well,​ if​ you​ haven't filed your current income tax returns,​ what hidden tax liabilities exist? What is​ the​ state of​ your record-keeping? How do you​ run your business without adequate financial information? Your bank may hesitate to​ loan you​ money or​ refinance under these circumstances.
7 .​
Reduce Stress and Worry
Many people who are late filing their tax returns feel guilty about it .​
At the​ back of​ their minds,​ they worry about taxation authorities contacting them,​ audits,​ asset seizures,​ criminal prosecution,​ penalties and interest,​ and so on​ .​
Some of​ these worries can become magnified beyond what the​ actual situation warrants .​
Save yourself unnecessary stress by filing your income tax returns on​ time.
Top 7 Reasons To File Your Income Tax Returns On Time Top 7 Reasons To File Your Income Tax Returns On Time Reviewed by Henda Yesti on July 05, 2018 Rating: 5

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