Tips For The Tax Procrastinator

During tax season, the pressure of filing taxes mounts for many taxpayers. The big question is why Tax Procrastinators put off filing their taxes. Based on a recent survey by IPX, 1 in 3 or 30% of Americans don’t feel prepared to file their taxes this year, and 32% admit to procrastinating.

Many taxpayers say they avoid preparing their taxes because it’s just too complicated and stressful. While others dodge the task because it’s too time consuming, and still, other folks say they don’t believe they’re getting a refund.

Tips for the Tax Procrastinator- man at computer with eyes closed and tax folders and crumbled papaer.

While some may think this is a small number compared to the 150 million returns filed yearly, it is still a significant issue for the IRS. 

Unfortunately, failing to file a return typically creates additional problems, such as penalties and interest charges on top of any back taxes owed on their original returns.

Tax Procrastinator

Here are tips for the tax procrastinator you can use to get your taxes done on time and steps you can take if you miss the April 15 filing deadline (April 18th in, 2023).

Note: If you fall behind on filing your tax returns, you’re not alone; we can help.

Contact our tax resolution team; we’ll help you file late tax returns and negotiate with the IRS if you owe taxes.

  • Firstly, Connect with your Enrolled Agent or tax professional as soon as possible.

Communicating with your tax professional early gives you a jump start on filing your taxes. The IRS suggests filing as early as possible and paying your tax bill online.  Please note you can file early, but you do not have to pay until the filing deadline without late paying penalties or interest stacking up.

If you wait until the last minute, your EA or tax pro will have less time to spend with you, and if their office is like ours, you will go to the back of the line… first in, first out.

  • Gather your tax forms as you receive them

Facing the tax deadline with a stack of papers is daunting even for the non-procrastinator. However, for those with procrastination tendencies, that mountain of paperwork can stimulate a sense of alarm and often panic.

  • Organization

Instead of waiting until everything is ready, gather each tax form as you receive it. It’s best tosave it in a dedicated folder on your computer. Brokerage statements and Schedule K-1s from partnerships and S-corporations are generally sent out late, and  are essential to be part of your tax preparation package.

  • Find Your Tax Return for Last Year

It is imperative to have your prior year’s tax return available, so find it before you visit your preparer. Nothing is more frightening for a procrastinator than finding this necessary form at the last minute. Therefore, make sure you have it readily available.

The tax return you filed last year will be required to verify your identity, an important step the IRS implemented in the face of growing identity theft and tax filing fraud.

If you haven’t filed for the previous year, now is the time to do it. You will likely owe penalties and interest, so procrastination worsens the debt.

If your tax preparer has a “tax organizer”, request it and use it. Bring it to your appointment or send it to your preparer with your other documents. It will help you remember what you had last year.

  • Oh no, I missed the deadline!

As a tax procrastinator, you know that things do not always go as planned. Last-minute complications can happen. And despite your best efforts, you might still miss the April 15 tax filing deadline (April 18th in, 2023).

The good news is that you can file an extension if you cannot file by the due date. So, whether you use do-it-yourself tax prep software and file your return online, you can still request a tax extension. This gives you an additional six months to file.

However, that does not mean you can avoid paying what you owe. If you think you might owe money to the IRS, you still need to pay with the extension. That’s where last year’s return will be helpful.

Being a tax procrastinator can have its benefits. Sometimes a deliberate and slow decision is preferable to one made in haste, something procrastinators know very well. However, when filing taxes, procrastination can worsen an already stressful time. Therefore, you cannot ignore your filing obligation to survive tax season with your sanity intact.

A tax resolution firm like ours, The Tax Relief Company, headed by Enrolled Agent and Certified Tax Resolution Specialist, has years of experience helping taxpayers like you resolve IRS and State tax problems and negotiate the best deal on your behalf.

If you think you will owe the IRS money for 2022 or prior years or just have not filed for a while (for any reason), contact us, now. Book a consultation with Enrolled Agent and Certified Tax Resolution Specialist Jeffrey Schneider, EA, CTRS, ACT-E, to discuss your options.

On the bright side, the IRS has several settlement options, including its Fresh Start Program.

Hopefully, tax filing season will bring the expected refund, but preparing for the unexpected is essential.

The new tax bill has unleashed many unintended consequences, including smaller refunds and surprise tax bills.

By being prepared, you can reduce the distress of an unexpected tax bill so that you can get on with the rest of your life.

Confessions of a Procrastinator