Success Tip: Communicate When You Can’t Pay (on Time)

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Financial Tip of the Day

Happy Monday! I hope your week is starting off well. As we begin the month of April, this is my friendly reminder to finish up filing your taxes by 4/17 (if you haven’t yet).  I filed my taxes for this year the other day and feel such a great sense of relief knowing it’s done for the year! And within plenty of time. I paid a skilled tax preparer/CPA to do my return since I also filed for my business and want to make sure it’s correct.

If you think that you won’t be ready to file by 4/17, request an extension. This automatically allows you an extra 6 months to file. If you’re not sure how they work/how to do that, check out this article: The Pros and Cons of Filing a Tax Extension.  While filing extensions won’t change your tax bill and penalties due (if any), they will prevent you from ALSO having to pay a late filing penalty too.

One of the key success tips that I always share with clients is: always stay in communication with creditors when you are unable to pay for ANY reason. It’s always easier to work out an alternate payment arrangement when you let them know ahead of time that you can’t pay. Once you miss the due date, then you usually lose all options for negotiating and the negative consequences of non-payment kick in.

I have found - in my work and through personal experience - that almost ALL companies are willing to work with you if you let them know in ADVANCE when you’re having trouble paying.

By the way, if you happen to have a straightforward return, and would like to take advantage of free tax filing services, be sure to check out my quick training where I explain several available options here.