As the looming tax filing deadline approaches, the reminder to file your taxes early resonates with increasing urgency. Surprisingly, around one-third of Americans—about 33%—procrastinate their tax filings, as revealed by a January survey conducted by the real estate firm IPX1031. This is not just a matter of potential refunds slipping through one’s fingers, but there’s an insidious risk lurking in the shadows: tax-related identity theft. The question begs to be asked: why are so many people willing to gamble their financial security on the false promise of time?
Tax attorney Adam Brewer strongly advises against waiting, emphasizing that there’s nothing beneficial about stalling. Delaying your tax filing can open the door to various pitfalls, chief among them being the increased risk of identity theft. When thieves can file a fraudulent return using your details, it creates chaos that can haunt you for years, affecting your credit scores and financial well-being.
Tax-related identity theft is not merely a theoretical concern; it’s a pressing epidemic. A report from Erin Collins, National Taxpayer Advocate, starkly illustrates the lingering nightmare numerous victims face. On average, resolving cases of identity theft has skyrocketed to a staggering 22 months—a gloomy increase from the previous year’s 19 months. That kind of delay can bring your financial life to a standstill and siphon your mental energy.
For the 2024 tax season alone, the IRS confirmed over 15,600 instances of identity theft returns, a grim rise from about 12,600 the previous year. These numbers are not just statistics; they represent families grappling with anxiety over tax filings while facing financial uncertainty. Filing sooner not only keeps this threat at bay, but it also returns a sense of control to taxpayers, allowing them to manage their finances more effectively.
The urgency to file early should not translate into haste. It can be tempting to hit “send” on your tax return as soon as your documents arrive, especially for those anticipating a refund. However, experts caution against this approach. Tax professional Tom O’Saben stresses the importance of careful verification of all information, including Social Security numbers and banking details. His advice to “measure twice, cut once” underscores a pivotal point that many tend to overlook: accuracy is paramount.
A hasty submission could trigger a cascade of problems. An incorrect or incomplete filing leads to delays that can take months to rectify, further worsening any initial sense of urgency. Given the complexities of tax code and the numerous forms involved, it’s crucial to paint yourself as a proactive taxpayer, not a reckless one.
Recently, there have been significant IRS layoffs, raising concerns about the level of service and efficiency taxpayers can expect. In a system that is already strained, layoffs may compound the difficulties taxpayers face in getting their returns processed in a timely manner. However, O’Saben remains somewhat optimistic, asserting that if you file an accurate return electronically and opt for direct deposit, you should still see your refund arrive promptly—typically within 21 days.
Yet the thought of “corrections or extra reviews” potentially leading to delays should not be dismissed lightly. It reminds us that while technology has made e-filing faster, it also introduces new challenges as the IRS manages increasing volumes of returns and heightened scrutiny on identity fraud.
The financial landscape is one where each decision reverberates through our lives in ways both seen and unseen. Filing your taxes promptly is not just a mundane chore; it is an act that reflects your commitment to your financial future. The risks attached to procrastination—identity theft, processing delays, and inaccuracies—can significantly alter your financial trajectory. The time to act is now; don’t let procrastination steal your power. Filing early is your first line of defense, an essential step in safeguarding your financial identity.
In a world where every moment counts, why gamble with your financial security? Take the proactive stance. It is an empowering choice for anyone looking to navigate the complexities of modern finance while fortifying themselves against threats that linger in the shadows.