(Newswire.net — November 18, 2020) — When people hear these words, they are not excited about it. There are many reasons why people don’t like filing taxes or won’t even bother at all.
Let’s look at why it’s important and, for those who haven’t filed in a long time, what can you do to fix this.
Why are People Not Filing?
Personal Circumstances
There are times when you may face difficult challenges, such as; death, illness, or tragedy. You could also have delayed filing taxes for several other reasons. Procrastination can set in, causing you to miss the due date. Some people may become overwhelmed with the process and give up before they’ve even tried.
Whatever your reason is for not filing your taxes, it has serious long term implications. The longer you wait, delay, or postpone, the greater the financial repercussion. Penalties are levied on late filing as well as on stalled payments. Then there’s the interest added onto this, and for some people, this can add up to huge amounts.
Why Should You File Your Taxes?
There are various benefits of obeying this law. One of the important reasons is; because it’s the right thing to do. Other benefits include financial, which has its pros and cons.
Financial
Fulfilling your civic duty to your country could benefit you. By filing your taxes regularly, and timeously, you could avoid penalties and unnecessary interest.
When encountering an unforeseen situation that prevents you from doing your taxes, and you can show reasonable proof, then penalties could be waived.
There might be the odd chance that you owe money on your taxes. In these situations, you can make the necessary arrangements to pay the amount off. The quicker this is done, the better for yourself.
Regular filing of taxes can also safeguard your credit score. Tax debt might not appear on your credit report but could impact your application for a loan.
What Help is Available?
There is help available if you are struggling with the process of filing your taxes. Free service of preparing your basic tax return is offered to the elderly, provided you qualify.
If you earn less than the threshold, are physically disabled, or not fully articulate in English, then free assistance is given to you too.
There is also specific software available for those not confident in doing it manually. Another option would be to ask a relative or a friend to assist you. You could even approach a tax advisor or consultant. These professionals are well versed with tax law and could even give you valuable financial advice that could benefit you.
Tax Amnesty
Amnesty is available for those who have not filed taxes for several years or have filed but have done so incorrectly. According to canadiantaxamnesty.ca, there is a program available to these people to rectify this.
In the US, the Tax Amnesty procedure varies from state to state.
Closing Comments
Filing your taxes can be laborious and maybe an overwhelming task. The important thing to remember is that it’s the right thing to do, and in the long term, will be more beneficial for you. There is help available if needed, and programs developed to help fix your mistakes or oversights. The main step to take; is to get it done.