Tips for First Time Extension Filers

November 4, 2021

Before requesting an IRS tax extension, make sure that it is appropriate for you. These are some commonly cited reasons why you might need to reschedule your deadline:

●    Additional time is required to locate necessary tax papers
●    Unanticipated life occurrence
●    Life has been far too hectic

If you cannot finish your income tax return by the closing date, you must first seek extensions with the IRS to avoid any possible delayed or missed payment penalties. By requesting an extension, you will be able to extend your deadline.

It’s critical to remember that a postponement merely puts back the deadline for submitting your tax paperwork. It does not provide you with additional time to pay the tax you already owe. If you anticipate you may owe some money this year, you must determine how much you will owe after applying for an extension and clear the balance before the filing date.

1. Choose the E-filing method for a faster refund

If you think you are eligible for a refund after filing, the easiest method to collect your money is to e-file your return with trustworthy income tax filing software. Preparing your form on paper and sending it through regular mail takes far longer for it to reach the IRS for approval.
Another option is to have your refunded amount transferred directly to your account. Simply enter your small business account details in your tax program to get your refund sent straight to your bank.

Look for the following essential features while choosing tax software for income tax filing in Mesa:

       Security is the top priority-

Security is critical – Reliable tax filing secures your details by adopting appropriate practices and policies for offline and digital security. Reliable identification, stringent surveillance, file encryption, and payment regulation are all part of the process of keeping your information and data safe. Do your homework to ensure that they recognize the program you select to keep your personal information private.

       Affordable pricing –  

Instead of paying a chunk to receive a premium service, it’s essential to evaluate your alternatives to guarantee you’re not spending more than required to file. Several domestic app developers offer similar solutions as the tech giants but at a lower cost.

2. Make use of the IRS payment arrangements

Tax preparers who receive a tax invoice after filing their forms can reap the benefits of the IRS’ payment options. The department provides short-term and long-term programs, allowing you to choose the best  options for your circumstances.

On the IRS website, you may learn more about how to enroll in a payment schedule.

3. Avoid fines by filing as soon as possible

Requesting an extension during tax season may undoubtedly help alleviate the usual pressures involved with finishing your returns, but the additional time can also promote a stalling habit. This is particularly true with all of the diversions that arrive in the spring and summer. Even before you realize it, the October 15 deadline has arrived, and you are trying to chase the deadline once more.

Nevertheless, some applicants may still wait till the last minute and suffer late payment fines. We suggest skipping the last-minute rush and filing well in advance of October 15. This way, you’ll leave yourself sufficient time to finish your returns calmly and eliminate the rush filing blunders that occur when you are running out of time.

Take this a gentle nudge to finish your return as soon as possible!

4. File as soon as possible to ensure correct Child Tax Credit monthly installments

From July 15, 2021, the IRS has begun issuing Child Tax Credit reimbursements every month to eligible households. Families will get a payout depending on their most recent tax return, either in 2019 or 2020. If you qualify for the exemption, the best approach to guarantee that your monthly costs are correct is to complete your tax filing as soon as possible.

Filing early allows you to provide the IRS with the most up-to-date information about your tax position, allowing them to accurately compute the monetary amount you are eligible to receive. If you wish to know more about exemptions, refunds or Child Tax Credit, our small business tax filing services in Mesa would be happy to answer all your queries.

5. Pay close attention to typos

As it would be your final attempt to file your return without getting any fines, be careful or consider hiring a small business tax filing service in Mesa. It implies you must do it correctly or potentially lose a part of your income. Take time to examine whatever data you’ve entered into to your tax documents, papers, and invoices.

Verify all of the figures to confirm everything is accurate. Examine your details, such as names, dates of birth, and SSNs, to ensure that you did not misspell or forgot to include a dependent.

6. Keep a copy of your tax form

The internal revenue service strongly advises all taxpayers to maintain a copy of their tax form every year. Having a copy on hand can help you revise past year’s records and submit the following year more efficiently.

Furthermore, by investing enough time to examine your returns, you may learn a great deal about how to enhance your financial situation the next time you prepare to file.

7. You might be eligible for more time

 When you’re a member of the armed forces or have recently worked in a military zone, you have extra time to prepare your tax return. Military troops generally get at least 180 days upon departing a war zone to complete their returns and pay any taxes owed.

For small business tax filing in Mesa, and all your accounting & bookkeeping needs, feel free to talk to our experts. We happily offer a free 1-hour consultation. Contact now!

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