It's time to file those taxes: These tips could spare you stress and save you money

Dan Henn
·4 min read

It’s tax season. Things are really hopping in our office. I think due to many new complexities in the tax law and some people complicating their life with a new business, buy or sale of real estate, buy or sale of cryptocurrency, or just change in life (like getting married, having kids or retiring), my phone has been ringing off the hook.

There are a few things that are certain about preparing your tax return this year:

· Please do whatever you can to file your return electronically through your tax software or use a tax professional.

· Please be patient when you efile your return and you are also due a refund. I have seen many people having their refund delayed due to moving, being in a different state, and/or refund was much larger than in the past.

· If you have to call the IRS, do it as early in the day as possible. Some phone numbers open as early as 7 a.m. or 8 a.m.

If your 2021 tax return has no issues, the IRS said most people can expect to receive a refund within 21 days of when they file electronically if they choose direct deposit.  The average tax refund last year was more than $2,800.
If your 2021 tax return has no issues, the IRS said most people can expect to receive a refund within 21 days of when they file electronically if they choose direct deposit. The average tax refund last year was more than $2,800.

· If you have to file a paper return, be sure to mail it certified mail and have a lot of patience. The IRS has been taking six to 12 months to process many paper returns.

Also, please be mindful of these upcoming due dates. Partnership and S Corporation returns are due by March 15, 2022. If you cannot file by then, please request an extension (the max is six months, making it due on Sept. 15, 2022). Again, if you mail the extension, please be sure to mail certified mail. There is a penalty of $210 per partner/shareholder per month (or part of a month) to a cap of 12 months. Individual, C Corporation (calendar year), Trust/Estate (calendar year), Gift and FBAR (Foreign Banking Reporting) are all due by April 18, 2022. You can request an extension for an additional six months to Oct.15, 2022.

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A few additional notes:

· If you think you will owe money with your return, pay as much as you can by the April 18 deadline. Any amounts due that are paid after that date will accrue interest and late filing penalties.

· Please file your return by the due date (or extended due date) when you are able pay something or not. If it is filed late and you owe money, you will incur the late filing penalty of 5% per month (or part of a month) to a cap of 25%. You should try to avoid this at all costs.

· If you think you are going to owe and cannot afford to pay it now, please make sure you file the return before the deadline to avoid the late filing penalty. Most of the time we cannot get people out of penalties without good cause.

· If you are having trouble gathering documents, life is getting in the way or you just don’t have all the information together, file an extension if you can. If you are in the extension period, please file a return with reasonable estimates. Be sure to state in some note section that you are using estimates on the return. Then amend it as soon as you have the good/final numbers.

· If by chance you filed your return already and some document shows up that you “forgot” about, please try to efile an amended return before the due date. If you do so, it is treated as a superseded tax return and it will replace the original return which helps to avoid or minimize penalties.

· If you have not filed a tax return in a number of years, try to file your returns for the last three years as soon as possible. The clock runs out on the 2018 tax returns on April 18, 2022. If you file the return after that, the IRS is, by law, not allowed to give you the refund. I see it happen many times. Don’t let that happen to you.

I pray that my comments haven’t scared you too much. I actually hope it will motivate you to get your tax return done and get it done right away. As always, please seek the help of a licensed professional (CPA, EA, attorney) to help you with your questions and tax prep.

I hope you are enjoying this wonderful weather we have had so far this winter. We are near the start of spring and longer daylight time. I know I am looking forward to it. Until next month: Keep your head up and smile at a perfect stranger.

Dan Henn is a local certified public accountant. His firm specializes in IRS audit and collections representation, real estate and medical taxation, year-round tax planning and tax preparation in Rockledge. Contact his office at 321-684-7800 or at danthetaxman@danhenncpa.com.

This article originally appeared on Florida Today: These tips could spare you stress and save you money as tax time looms