Procrastination and tax filing are two things that shouldn’t mix. However, it may happen for you every year. TaxMama Eva Rosenberg writes in today’s Equifax Finance Blog how delaying organization and preparation of your returns can have awful consequences.
- Shortchanging yourself on refunds.
- Filing late, which can result in a late-filing fee, a late-payment penalty, and additional interest.
- Failure to file your own taxes means the IRS and the state will do it for you, and you will get the short end of the stick. They compute your taxes due based on information they get from W-2s and 1099s. You end up with the highest taxes possible in this scenario.
Tax filing is a rigorous process, but these are great incentives to not wait until the last minute. Do you have a last-minute filing story you would like to share? Or any tips for beating procrastination? I would love to hear your comments.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.