Are you panicking because the tax season has started and you have not prepared your taxation documents? There are many tax payers who procrastinate while there are only few tax payers who prepare early and question, ‘when is the earliest I can file taxes’. Those tax payers who procrastinate suffer from some terrible consequences too, such as high penalties, fines, and even arrest warrants. It is always safe for people who question, ‘when is the earliest I can file taxes?’ as they prepare promptly.
Those who are worried about the question, ‘when is the earliest I can file taxes?’ must keep in mind that in order to claim for tax returns they must first receive their relevant forms and year end statements, such as form W-2 from their employers and Form 1099 from banks or any other form related to their industry. Also, the IRS will not process their tax documents and files until the opening day of the tax season, Tuesday, January 19, 2016. But it is good to prepare beforehand to avoid any problems at the last minute because these are serious matter and they must be done properly and with concentration.
What is Tax Filing?
As mentioned above, there are two types of tax payers, the ones who delay and one who file taxes earlier. The tax payers who file their taxes late and the ones who do it earlier may not necessarily know about the tax filing phenomenon. When we talk about tax filing returns, we are merely concerned with the income tax returns of the previous year.
When you ask yourself, ‘when is the earliest I can file taxes?’ then you must not forget that there are number of income tax returns. Additionally, all of them have a different purpose. Due to the distinct purpose you must understand the difference and usage of each form. The forms are quite confusing but you can take help from your attorney or local tax preparer around you. These forms prevent you from paying high amount of taxes.
If you do not know the difference between the IRS forms then you need not feel ashamed or embarrassed because you are not alone. Forms are really very technical and prior to choosing any form, consult your local tax preparer for prevention of high taxable income. They will assist you in filling appropriate form which can help you in saving costs for your business investments. Some of the common forms are listed below.
- Form 1040
- Form 1040 EZ
- Form 1040 NR – EZ
- Form 1040 A
- Form NR
- Form W – 2
- Form W – 4
- Form W- 4P
- Form 1099 – MISC
- Form 1098
- Form 941
- Form 8962
Why Do Tax Payers Consider Tax Filing So Important?
Tax filing is considered one of the most important requirements by tax payers. The ones who think about the question, ‘when is the earliest I can file taxes?’ really are concerned about filing for tax returns and know the worth and importance of tax filing. Due to high importance, tax payers usually become active as soon as the New Year arrives. The ones who prepare for taxes beforehand do not want to face the scary consequences of not filing tax returns on time.
Furthermore, unfortunately there are tax payers who do not think filing tax returns is important and thinks they are useless for tax authorities, which is why they at times choose not to file tax returns and try to save their money. But these people cannot hide themselves from the IRS and they are at mistake. Also, by not filing taxes, they are actually missing the benefit of being the good list of the banks, reducing the tax liability and tax evasion for themselves, and the development of the nation.
Tax Time! – Official Affirmation of the Tax Filing Season by the IRS – Tuesday, January 19, 2016
The tax payers who have delayed in preparing for taxes must be in panic now as the IRS has officially announced the tax filing date, i.e. Tuesday, January 19, 2016. The date has already passed and most of the tax payers may be standing out of the IRS office or filing for their tax returns electronically. According to one of the Forbes article, this time the IRS is expecting to receive at least 150 million individual tax returns for 2016.
Those who are wondering, ‘when is the earliest I can file taxes?’ may also be concerned about the last day or the deadline of the tax season i.e. tax day. The last day to file taxes is unlike the traditional day (April 15), it is Monday, April 18, 2016. But prior to filing taxes, keep in consideration the relevant income requirements and dependency status to file tax returns. After the announcement of the delayed deadline of the tax season, most of the tax payers are wondering about its reason.
Here is Why the IRS Delayed the Tax Season’s Deadline – Postponed Tax Day – Monday, April 18, 2016
This time, the IRS has delayed the tax day due to Emancipation Day. The procrastinators must thank the Washington, D.C. for delaying the tax deadline. Usually, the Emancipation day is celebrated on April 16, but it is coming on Saturday which is why it cannot be celebrated and shifted to April 15, 2016. As a result, the tax day has been pushed to Monday, April 18, 2016.
Now, procrastinators have an opportunity to prepare for their documents and file until three more days. Those who are trying to identify the answer to the question, ‘when is the earliest I can file taxes?’ must remember that they are Monday; April 18, 2016 is the last day to file taxes electronically. Though, the paper tax filing procedure will be continued until Saturday, October 15, 2016.
Regardless of the postponed tax day, there are several tax payers who are trying to know the answer to the question, ‘when is the earliest I can file my taxes?’ Acting beforehand and proactively is always a better option and prevents from the scary consequences by the IRS in regards with the tax filing process. Also, those tax payers who always keep on delaying must not hold up this time and start looking for tax preparers and arranging tax documents prior to Monday, April 18, 2016. It is better to do it now or early than panicking later.
Are You Wondering ‘When is the Earliest I can File Taxes?’ – Have a look Why Being Proactive is a Good Option
There are many tax payers who are wondering about the question ‘when is the earliest I can file taxes?’ Then, they must keep in mind that they can file for their taxes and claim tax returns from now onwards until Monday, April 18, 2016. Since the IRS has announced the official tax season opening day, Tuesday, January 19, 2016, as a result now all tax payers can electronically and paper file their taxes.
As mentioned previously, there are many tax payers who are questioning ‘when is the earliest I can file taxes?’ On the contrary, there are some of the tax payers who want to delay on filing taxes. Such procrastinators may not really know about the terrible consequences, which is why they keep on delaying or completely consider not filing taxes. Instead, they must know that they are missing various benefits by not filing early, such as development of the nation, tax evasion and tax liability reduction and coming in good lists of banks for loans.
We have come up with a few more benefits below for filing early.
· Reason # 1: You Can Go for Electronic Filing and Avoid Paper Filing
Joining crowds outside the post office can take longer. You should go for electronic tax filing instead. Electronic filing is much convenient and less time consuming as compared to paper filing. Also, the IRS suggests tax payers to go for electronic filing. It is one of the most advance tax filing systems introduced for tax payers’ convenience.
Around 70% of the tax payers filed their tax returns means only 30% mailed their taxes and joined crowds outside the post office as per IRS. If you are planning to file your taxes early and wondering, ‘when is the earliest I can file taxes?’ then, do not waste your time outside the post office and quickly electronically file your taxes before Monday, April 18, 2016 with convenience.
· Reason # 2: You Can Get Over with the Responsibility
Doing things beforehand can give you a lot of peace of mind at the last moment and during the entire filing process. As a result, you must make sure that you do not spend the first three months of this year with distressing thoughts until Monday, April 18, 2016. Acting proactively can help you in getting the job done and getting over with the responsibility and prevent from the frightening outcomes. Also, you will be able to focus and look upon to other areas of life.
· Reason # 3: You will Get Faster Refunds
Tax payers who want to know ‘when is the earliest I can file taxes?’ are more concerned about the filing date because they want faster refunds. But, faster refunds are not granted to all tax payers. It is only granted to those tax payers who have overpaid their taxes. Therefore, some tax payers try to file early to get faster refunds. But remember that everyone does not get a faster tax refund. We have explained this phenomenon further.
· Reason # 4: You will Avoid the Possibility of Being Late
The tax payers can avoid the possibility of being late. Those who are wondering, ‘when is the earliest I can file taxes?’ are on the right track. They may have prepared for their taxes prior to the opening day and will file them at the earliest. This is a very good practice as it can save you from the sever outcomes. Also, you do not know what time may bring until the deadline of the tax season. Consequently, filing early can help you in avoiding the possibility of being late.
On the contrary, if you file your taxes late, you will waste your time and money, embrace scary consequences as well as pay high interest and huge penalties for filing late. In addition to this, being a procrastinator, you will increase the chances of mistakes for filing taxes. You can make mistake in the Social Security Number or in the calculation at the last minute. So, instead of risking your tax filing process in a rush, try to file your taxes earlier and prepare for them beforehand to save future investments and money.
· Reason # 5: You Can Secure Yourself from Paying High Interest Loans
High interest loans from the IRS can make you bankrupt and insolvent. The IRS can claim heavy penalties and send arrest warrants for not filing tax returns. There are many more scary consequences we will be discussing further. As a result, you should try and maintain your finances beforehand and prepare for your taxes in advance. So, if you want to secure yourself and avoid paying high interest loans, then do not procrastinate and file taxes early.
Are You Filing Early For Faster Refunds? Consider This First!
If the question, ‘when is the earliest I can file taxes?’ pops up in your mind, then it may have occurred possible because of getting faster refunds. But this does not happen with everyone. The individuals seeking for the opportunity to file taxes early must receive their relevant forms and year end statements, i.e. form W-2 from your company and form 1099 from your banks. After receiving these forms, they become eligible for the tax refunds and returns by the IRS for 2016. But it is not necessary that you get returns or refunds early, the process takes time, so be patient.
The IRS Does Not Process Tax Returns Until the Opening Day
The tax payers who ask,’ when is the earliest I can file taxes?’ are often found confused for filing taxes despite the announcement by the IRS about the late start to season. There are certain tax preparers who accepting tax returns prior to opening of tax filing season. Proactive tax filers must remember that they may be taking or preparing for their tax returns beforehand, but remember that you will not get your refunds or returns faster.
When you submit your tax information early, your local tax preparer will hold your tax filing until the IRS systems officially opens for processing. As per the IRS, there are no greater benefits of filing early or before the opening day but it is still best to prepare beforehand and in advance. Make sure that you file for tax returns with complete tax information inducing all tax forms and related documents.
What Happens If You Do Not File Early? – Terrifying Outcomes
The ones who are trying to find out, ‘when is the earliest I can file taxes?’ are on the right track. On the other hand, the ones who are procrastinating and trying to delay on their taxes sadly are at mistake. They must know that there are some severe and terrifying consequences for not filing early. They may think that the IRS is too busy to go after late filers and do not file taxes early but they do not know that the IRS strictly keeps an eye on each and every tax filer. The IRS treats each and every tax payer individually and calculates all the interest and penalties on case by case basis.
As soon as they receive tax payer’s tax returns, they go through the tax filing date and calculate the penalties in case of late filing. After that, they send the tax payers a separate bill. Let’s have a look to a few of the penalties which may scare the tax payers who procrastinate and they start filing promptly.
- The tax payers who file after 60 days of the due date are required to pay a minimum penalty of $135 or 100% interest on their unpaid taxes.
- Tax payers will be required to pay 5% penalty on the additional tax amount for every month if they file late tax returns. They could reach up to 25% depending on the number of days.
- The unclaimed tax returns become the property of the US Treasury after 3 years, determining the tax payers will not receive any tax benefit if they do not file taxes early.
- The filing penalty for tax payers can be 10 times higher than the late payment penalty.
- On ignoring the tax bill, the situation can worsen and the authorities can even send arrest warrants putting tax payers into jail for years.
Do You Want To Safeguard Yourself From Penalties? – Try Filing Early for Tax Returns
Now you must have understood the answer to the question, ‘when is the earliest I can file taxes?’ and procrastinators may have understood the scary consequences of late tax filing. Those tax payers who want to safeguard themselves from the high penalties should make a habit of filing taxes early. They should prepare for their tax documents as soon as they receive all the forms and complete the claim for tax returns on the opening day of the tax season.
Filing early can save you from serious consequences as mentioned above. All tax payers should act proactively and take quick actions beforehand for a seamless tax filing process. The tax season has already opened, so roll up your sleeves, look for help form tax preparer and start preparing for your taxes. Good Luck!