With the end of tax season just mere days away, late filers may be scrambling to get their returns prepared and filed on time. Another 20 percent will still wait until just two weeks before the deadline. Unfortunately, both groups may experience more than just stress; procrastination may also lead to avoidable mistakes and increase costs and risk of having to file an extension.
Tax Preparation Costs Increase in Last Month before Deadline
There is a little known secret when it comes to tax preparation costs; most software programs and online filing tools increase their costs for late filers. Take the online filing program, TurboTax, for example; they increase the prices on their products by as much as 25 percent after March 17th. On the other hand, H&R Block’s online filing software has remained the same price, but according to CBS News, some of their free filing options from earlier in the season have completely disappeared.
CPAs and Tax Preparers and Their Procrastinating Clients
As the deadline approaches, the workload of tax preparers and CPAs often increases, making it difficult (if not impossible) for them to complete every client’s return. As a result, they may ask you to file an extension, giving them more time handle each return accurately. This is not the end of the world, of course – around eight percent of all returns are filed after receiving an extension from the IRS – but it can still be quite an inconvenience.
For starters, those that file an extension and are expected to receive a return, funds will be severely delayed. And taxpayers who are expected to owe still have to pay their projected amount to the IRS before the deadline. Both groups are also required to provide an estimate of their tax obligation prior to the deadline, which falls on April 18th this year.
Delaying Because of Unpaid Debt?
If you are procrastinating on your tax return because you already have unpaid debts with the IRS, it is important to know that the problem will only get worse with time. Attorney Eric Zelazny can work directly with you and the IRS to help you sort out your back taxes, liens, or bank levies to attempt the best possible outcome for your particular circumstances. To learn more, schedule your free initial consultation with an experienced Tinley Park IRS tax law attorney. Call 708-888-2299 today.