Does It Ever Make Sense to File Your Taxes Late?

0:00Question is, does it ever make sense to file your taxes late? As a matter of fact, there are sometimes where in our comprehensive tax strategy for our clients with tax debt, we do recommend they file their tax return late. These situations are far and few between, and it generally involves a situation where the client is expecting a refund for their current year's taxes, right? So finally, it would not cause them to penalize or cause them to have interest or crude against them for the current tax year. But they have, say, one tax year of old tax debt remaining. And that tax debt collection statute expiration date is coming up soon. In that case, we have recommended in the past, hold on to that tax return with the refund, showing the refund until we've confirmed

1:01that your old tax debt has entirely dropped off. Why? Well, if you think about it makes sense, right? Because if they had filed their tax return before the CSAT dropped off of the old tax debt, then their refund would be applied to that old balance. If, but if they wait until the CSAT drops off, then they get that refund for this year in their pocket, okay? So that's one instance in the past. In which we may recommend that somebody file their taxes later, hold on to their tax return. Another instance has to do more on the collection side. If someone just had a really big year, let's say last year, with their job or something, something. And they're all withheld, right? They're all paid in, so no penalty for filing late. But then we're trying, but then this year, it's, their fortunes have changed, right? They're making a lot less money now, okay? Sometimes just for the ease of getting through

2:03a hardship-based resolution with ACS, we may suggest to the taxpayer, hey, this might go a little easier, right? If you hold on to that tax return showing that you made big money last year. So that the, so that ACS might just look at the previous, previous previous year's adjusted gross income, which is more in line with what they're making now. And they may be a little more, it may get us through the pipeline a little bit quicker for like a PPI or a CNC. As opposed to if they see the big AGI on the return from last year, we have to explain, oh, that was an exception, right? Like that was just like kind of a one-time thing, a huge bonus, it's not gonna be replicable. So that's another time when we may recommend a client. Other tax returns just for the sake of getting stuff through ACS faster. All right, folks, this was an interesting question, and it's one that comes up a lot, because people like, oh, what are the exceptions? You know, you should always find other tax returns on time. Oh, but what are the exceptions? And here's a couple for you.

3:03But that pink set, you don't wanna get too far behind on filing your taxes, or else you could find yourself in a world of hurt. That's why here at Choice Tax, actually if we offer free consultations, not only to folks who owe at least $10,000 in Mac tax debt, but also to folks who have multiple years on filed tax returns. So we can kind of put together a filing strategy for you. If you'd like to request a free consultation, give us a call at 8668000 tax. That's 86682829, or you can go to choicetaxleaf.com, fill out the form on our website, and we will reach out to you. Thanks so much for watching, everybody. See you in the next video. Bye-bye.