Should You Hold Off On Filing Your Taxes?

2007 taxesConventional wisdom would say that if you’re expecting a sizable Federal income tax refund, you would want to file your tax return as soon as possible to collect your money that you have been lending the IRS interest free during the year. With free online filing available, this has been encouraging even more people to file quickly to receive their refund.

There may be a reason, however, that you won’t want to file your taxes right away. Due to a number of tax law changes, banks, brokers, and mutual funds are predicted to have a difficult time providing accurate information to you by their end of January deadline. If the results are similar to previous tax seasons when tax changes caused troubles for these financial institutions, some will likely be forced to send you a revised 1099 form sometime before April.

Some tax experts are advising their clients to delay filing their tax returns until March on the chance that the initial 1099 form they receive may not be accurate. If you do get a revised 1099, it may force you to file an amended tax return. This isn’t much of a problem if the change is in your favor and you get some additional money back, but may cause some problems if the revised 1099 means you need to return some of your refund.

This entry was posted in Taxes. Bookmark the permalink.

2 Responses to Should You Hold Off On Filing Your Taxes?

  1. junger says:

    Last year, I decided to file my taxes early to get it over with … and then the day I put it in the mail, a W2 I wasn’t expecting to get came. Obviously, I had to file an amended return (and return some of the money I got back). This year, I’m waiting a bit longer.

  2. Pingback: February 2nd Friday Five - I’m Exhausted Edition : Generation X Finance

Leave a Reply

Your email address will not be published. Required fields are marked *