Filing early will net you a quicker tax refund. Anyone expecting a check will likely want to submit their return as quickly as possible. But preventing identity theft is another good reason not to delay. The IRS says most scammers try to get the jump on taxpayers by filing a phony Form 1040 early in the season, then pocketing the money before anyone is aware of the crime.
Filing early may also help avoid the need for an extension. People who wait until the last minute to file increase the chances of an error or may even discover they owe taxes. The IRS charges interest and penalties on any outstanding tax debt until it is paid in full. Filing an extension does not buy any extra time to pay any balance due.
The IRS says electronic filing was up nearly two-and-a-half percent in 2015 with more than 86 million refunds paid through direct deposit. It can shave weeks off the paper process and “freefile” tax preparation software is available to anyone earning less than 62-thousand dollars a year. The IRS will be accepting returns through April 18th.
