As tax season begins, you may be eager to file your tax return. fast return And to check yearly tasks off your list.
For most filers, the tax deadline is April 18, and the IRS urge americans preparing before filing to avoid processing and return delaywith the future IRS notice,
“You don’t want to race to the finish line with this,” says certified financial planner John Lloyd, owner of The Wealth Planner in Fort Worth, Texas.
Lloyd, who is also an enrolled agent, prefers a mid-March filing date. Why here
Why It’s Smart to ‘Tap the Break’ and File in March
while you might want a quick returnExperts say it’s important all your tax forms before filing your return. Companies send a copy of these forms to you and the IRS each year, making it easier for the agency to mark returns with missing information.
Typically, leaving out these details triggers an automatic notice from the IRS, which can delay processing or take time to resolve, he said.
Most tax forms are due late January to mid-February, but others may arrive later.
That’s why Lloyd’s is targeting a mid-March filing date to ensure that clients have all required forms – including documents that may need correction. For example, if someone discovers an error on their W-2 at work, it may take time to correct the mistake and reissue the form.
“For most of my clients, I’m really urging them to tap the brakes,” he said. Of course, you’ll still want to give yourself plenty of time to meet the April 18th deadline. late filing penalty,
Avoid tax identity theft by ‘filing before fraudsters’
That said, there’s no reason to wait once you have all of your required forms. Eric Bronnekant, CFP and Certified Public Accountant at digital investment advisor Betterment, said one reason to file immediately at that point is the risk of tax-related identity theft.
tax related stolen identity This happens when someone uses your Social Security number to file a return and fraudulently claim a refund. You can find out through a rejected tax return or IRS letter, among other warning signs. according to irs,
“It’s a good idea to file in front of the fraudsters,” Bronnekant said. But one way to protect yourself is to sign up for a identity security pinOr IP PIN, he said, which is a six-digit password to file your return.
The downside is that you have to keep track of a different IP PIN every year, which the IRS sends by mail or you can recover online,