From Time.com/nextadvisor —
By Dashia Milden —
The 2022 tax season was rocky — from an IRS processing backlog to refund delays and filing errors as a result of changes to the tax code.
As a result, the IRS predicted more than 15 million taxpayers would file for an extension this year. If you were among that group, you have until Oct. 17 to submit your return, even if you’ve already paid your estimated taxes owed to the IRS.
Tax preparers across the country, like Rob Cordasco, CPA at Cordasco & Company in Savannah, GA, are anticipating a filing rush as the October extension deadline approaches, just like they saw at the end of this year’s regular tax season. “That’s always our challenge, trying to get people not to procrastinate.”
The IRS is urging taxpayers to submit their tax returns electronically ASAP, too. If you’re eligible for a refund, filing earlier can help put more money in your pocket to begin to pay off debt as Fed rates continue to rise or to offset expensive summer vacation costs. And if you owe taxes, waiting longer to file could mean paying more in interests, penalties, and other fees.
There’s still time to get ahead of the last-minute rush. Here’s what to know if you haven’t filed:
File your return as soon as it’s ready
With millions of taxpayers still waiting to file their returns, it’s best to get ahead of the October deadline. There may be more limited resources for professional assistance the longer you wait, Cordasco says. “Those that procrastinate the longest usually end up at the back of the line,” he says.
As the IRS deals with its processing backlogs and staff shortages, the agency, too, advises filing as quickly as possible — rather than waiting until the October extension deadline.
“We continue to urge people to file electronically and do it as soon as possible,” said IRS Commissioner Chuck Rettig in a recent statement. “Even if people have an extension to file until October, sending the tax return as soon as possible can either help get them a refund quicker or it can save them money if they owe by avoiding additional interest and penalties.”
Prepare for higher filing costs
Before the April 18 deadline for filing 2021 tax returns, there were a number of offers for cash back rewards and savings on tax prep software, some of which may still be available for those who filed for an extension. Keep in mind that some of these deals may be targeted, and only available for a limited time.
If you’re planning to work with an expert to file your return, expect some tax preparers to charge more this year to account for tax law changes and more complex returns.
And the longer you wait, the more likely you’ll have to pay a premium closer to the deadline, says Cordasco.
The best thing you can do to prepare is organize your documents ahead of time, and start as soon as you can. You may be able to file your taxes online for a lower price if your return is straightforward. But if you think you’ll need a professional, it’s best to get help ASAP to avoid paying more closer to the deadline.
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