Getting all the tax details in order can be a difficult tasks if the tax return deadline is quickly approaching.
However, this is not an excuse to miss the deadline because it can result in incurring penalties. Following great practices can help you file your tax return in a timely fashion. It only takes 5 steps to ensure you do not miss the tax filing deadline.
1. Correct discrepancies on your tax statements
Incorrect statements may be one of the reasons you miss tax filing deadline. You can still do something about these discrepancies by putting some pressure on your bookkeeper to send the documents you need or correct tax statement errors. Your tax documents must be available before the deadline to ensure you file your taxes in a timely manner.
2. File your tax return online
Since you now have the option to file online, take advantage of the opportunity to file your tax retun right away. Once you file your tax return, it will be processed within 24 hours.
3. Submit an extension
File an extension to prevent filing an amended return. The extension allows you to buy some time so you can deal with your tax statement. If you have enough time to check your tax statement, it will be easier for you to get your taxes filed correctly. This is a great option for those who cannot track down corrected tax forms. However, you still have to keep in mind that if you owe any tax, you will still have to pay the estimated balance on the required date.
4. Pay as much of the balance as possible
Keep your penalty charges and extra fees to a minimum by paying as much of the tax balance as possible. You can also apply for an installment agreement to pay the remaining balance. If your application for installment agreement is approved, you will no longer have to worry about paying interest charges and excess fees.
Some business owners also choose to pay the tax balance with a credit card. This option saves time and money as you do not have to pay for high interest rates and fees that the ATO charges.
5. Create a system
If you do not want to get caught by the same cycle of delayed tax payments, be sure to consider setting up a system for next year. A good tax system prevents delays and minimises stress. Timely filing of tax return gives you peace of mind as you no longer have to worry about paying for penalties.