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 recurring penalties. This is in addition to any interest that is due.
2. Receive Better Service from your Accountant
The earlier you receive your paperwork to your accountant, the sooner he can start preparing your tax returns. More significantly, there will be more opportunities to explore and implement tax saving methods. However, in the event 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 significant penalties.
3. Steer clear of Criminal Charges
Obviously, in the event you do not file tax returns at all for a few years, you might also face charges of tax evasion.
4. Prevent Bankruptcy
Generally speaking, persons who do not file tax returns on a timely basis also lack sufficient records for managing their business. Since they do not 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 catastrophe.
5. Enjoy Better Relations with Tax Authorities
Late filers also receive the unwanted attention of the taxation departments. Non-compliance can lead to audits, aggressive collection action and legal proceedings. Additionally, if you ever do have extenuating circumstances that may call for some leniency or extraordinary consideration on the part of the tax department, you're more likely to receive it if you have a faultless history of co-operation and conformity.
6. Obtain Funding
You'll have difficulty acquiring funding if you cannot provide your financial institution with present income info. Assessment Notices from taxation authorities give banks more assurance that the earnings claims you make are true. As well, if you haven't filed your present income tax returns, what hidden tax liabilities are present? What is the state of your record-keeping? How do you run your company with out sufficient financial information? Your bank may hesitate to loan you cash or refinance under these conditions.
7. Reduce Stress and Worry
Many individuals who are late filing their tax returns feel guilty about it. At the back of their minds, they fret regarding taxation authorities getting in touch with them, audits, asset seizures, criminal prosecution, penalties and interest, and so on. A few of these concerns can become magnified beyond what the actual situation warrants. Save yourself unnecessary stress by submitting your income tax returns promptly.
1. Avoid Late Filing Penalties
Late filing can result in substantial and recurring penalties. This is in addition to any interest that is due.
2. Receive Better Service from your Accountant
The earlier you receive your paperwork to your accountant, the sooner he can start preparing your tax returns. More significantly, there will be more opportunities to explore and implement tax saving methods. However, in the event 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 significant penalties.
3. Steer clear of Criminal Charges
Obviously, in the event you do not file tax returns at all for a few years, you might also face charges of tax evasion.
4. Prevent Bankruptcy
Generally speaking, persons who do not file tax returns on a timely basis also lack sufficient records for managing their business. Since they do not 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 catastrophe.
5. Enjoy Better Relations with Tax Authorities
Late filers also receive the unwanted attention of the taxation departments. Non-compliance can lead to audits, aggressive collection action and legal proceedings. Additionally, if you ever do have extenuating circumstances that may call for some leniency or extraordinary consideration on the part of the tax department, you're more likely to receive it if you have a faultless history of co-operation and conformity.
6. Obtain Funding
You'll have difficulty acquiring funding if you cannot provide your financial institution with present income info. Assessment Notices from taxation authorities give banks more assurance that the earnings claims you make are true. As well, if you haven't filed your present income tax returns, what hidden tax liabilities are present? What is the state of your record-keeping? How do you run your company with out sufficient financial information? Your bank may hesitate to loan you cash or refinance under these conditions.
7. Reduce Stress and Worry
Many individuals who are late filing their tax returns feel guilty about it. At the back of their minds, they fret regarding taxation authorities getting in touch with them, audits, asset seizures, criminal prosecution, penalties and interest, and so on. A few of these concerns can become magnified beyond what the actual situation warrants. Save yourself unnecessary stress by submitting your income tax returns promptly.
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