Every year, millions of taxpayers find themselves scrambling at the last minute to file their returns before the tax deadline. If you’re one of them, you’re not alone. But here’s a little motivation for all the procrastinators out there—filing your taxes early isn’t just about reducing stress. It can also help you avoid penalties, secure a faster refund, and give you time to correct any issues before it’s too late.

At Basso & Guida, we always encourage our clients to get ahead of tax season instead of waiting until the last minute. Here’s why filing your taxes early is one of the smartest tax moves you can make.

1. File Your Taxes Early to Avoid Last-Minute Stress and Mistakes

When you wait until April to start gathering tax documents, rushing to meet the deadline can lead to costly mistakes, including:

• Missing out on deductions and credits due to lack of preparation
• Forgetting to report income from secondary jobs, freelance work, or investments
• Entering incorrect information that could lead to IRS rejections or audits

Filing early allows time for review so you can submit an accurate and complete return, reducing the likelihood of errors.

2. Secure Your Refund Faster

If you’re expecting a tax refund, filing early means you’ll get your money sooner. The IRS processes returns on a first-come, first-served basis, which means early filers often receive their refunds within weeks, while late filers might wait much longer.

Additionally, delays can occur if the IRS gets backed up—which has been a common issue in recent years due to processing backlogs and staff shortages. Filing early ensures you’re at the front of the line.

3. Reduce the Risk of Tax Identity Theft

Tax fraud is a growing concern, and one of the most common scams involves criminals filing fraudulent tax returns using stolen Social Security numbers.

• If someone files a fake return in your name before you do, the IRS may reject your legitimate return, leading to a long, frustrating process to correct the issue.
• Filing early prevents scammers from beating you to it, securing your refund and your identity.

Pro Tip: If you receive unexpected IRS notifications about a return you didn’t file, act immediately and contact your accountant or the IRS directly.

4. Avoid Late Filing Penalties

The IRS imposes penalties for late tax filings, which can add up quickly.

• If you owe taxes and don’t file by the deadline, you’ll face a Failure to File Penalty, which is 5% of the unpaid tax per month, up to 25%.
• If you fail to pay on time, interest will accrue daily on what you owe, making the total amount higher the longer you wait.
• If you’re a business owner and fail to submit payroll or estimated tax payments on time, penalties can be even steeper.

Filing early helps you determine what you owe ahead of time, so you can plan for payments and avoid unnecessary penalties.

5. More Time to Plan If You Owe Money

Not everyone gets a tax refund. If you find out that you owe money to the IRS, filing early gives you time to:

• Plan your payment strategy instead of scrambling to find funds at the last minute.
• Set up a payment plan with the IRS, if needed, to avoid large lump-sum payments.
• Adjust your withholdings for next year to prevent another tax surprise.

Pro Tip: The earlier you know your tax liability, the more options you have to manage payments without financial strain.

6. Enjoy Peace of Mind & Focus on Other Priorities

Let’s be honest—no one enjoys filing taxes. But getting it done early allows you to:

• Reduce stress and avoid last-minute panic
• Focus on running your business or managing personal finances without tax season looming
• Get ahead on tax planning for next year, so you can optimize deductions and strategies for 2025

At Basso & Guida, we believe in proactive financial planning, and filing your taxes early is one of the easiest ways to stay ahead.

Final Thoughts: Don’t Wait Until the Deadline

Filing your taxes early isn’t just a good habit—it’s a smart financial move that helps you:

• Avoid stress and errors
• Get your refund faster
• Reduce the risk of tax fraud
• Avoid penalties and interest charges
• Plan ahead if you owe taxes

Ready to file your taxes early and stress-free? Basso & Guida is here to help. Whether you need assistance with tax preparation, maximizing deductions, or planning for next year, our team is ready to guide you.

Schedule Your Tax Appointment Today and enjoy a smoother, worry-free tax season.