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Why it's Important to File Income Tax Returns. Call 808-468-8041 to Schedule a Consultation with our Tax Experts

Why it's Important to File Income Tax Returns. Hawaii Department of Taxation. Diamond Head Tax Group OAHU Experts. Honolulu's trusted source of tax filing services serving Honolulu, Aiea, Waikiki, Waipahu, Ewa Beach, Kapolei, Pearl City, Kahala, Portlock, Oahu and surrounding areas. Call: 808-468-8041

A lot of individuals seem to think that filing tax returns is voluntary and therefore dismiss it as unnecessary. However, filing income tax returns is an annual activity seen as a moral and social duty of every responsible citizen of the country. It is the basis for the government to determine the amount and means of expenditure of the citizens and provides a platform for the assess to claim refund, among other forms of relief from time to time.


FILING RETURNS IS A SIGN YOU ARE RESPONSIBLE

The government mandates that individuals who earn a specified amount of annual income must file a tax return within a pre-determined due date. The tax as calculated must be paid by the individual. Failure to pay tax will invite penalties from the Income Tax Department.


Those who earn less than the prescribed level of income can file returns voluntarily.


Filing returns is a sign that you are responsible. Not just that, it also makes it easier for individuals and businesses to enter into subsequent transactions since their income is recorded by the tax department with applicable tax, if any, having been paid.


FILING RETURNS IS MANDATORY

Even if your income level does not qualify for mandatory filing of returns, it may still be a good idea to voluntarily file returns. In most states, registration of immovable properties requires advancing as proof the tax returns of last three years. Filing returns makes it easier to register the transaction.


YOUR LOAN OR CARD COMPANY MAY WANT TO SEE YOUR RETURN

If you plan to apply for a home loan in future it is a good idea to maintain a steady record of filing returns as the home loan company will most likely insist on it. In fact, you may even consider filing your spouse's returns if you want to apply for a loan as a co-borrower.


Likewise, even credit card companies may insist on proof of return before issuing a card.


Financial institutions may insist on seeing your returns over the past few years before transacting with you. In fact, the government may make it mandatory for them to do so, thereby indirectly nudging individuals to file returns regularly even when it's voluntary.


 

Contact us and let our skilled OAHU Tax Experts offer their well-rounded tax advice and tailored tax solutions to help you file accurate tax reports. Diamond Head Tax Group is Honolulu's trusted source of tax filing services serving Waianae, Honolulu, Kapolei, Oahu and surrounding areas.


Oahu CPA Tax Firm Honolulu Alan Chan Diamond Head Tax Group Personal and Business Tax Filing and Preparation Tax Advisory S Corporation LLC Payroll Services


5 Star Client Testimonials Oahu CPA Tax Firm Honolulu Alan Chan Diamond Head Tax Group Personal and Business Tax Filing and Preparation Tax Advisory S Corporation LLC Payroll Services


We are available to assist you with your Tax Needs.

Individuals ● Business ● Tax Advisory ● Payroll Services

Oahu CPA Tax Firm Honolulu Office 1050 Queen Street #100, Honolulu Hawaii 96814 Alan Chan Diamond Head Tax Group Personal and Business Tax Filing and Preparation Tax Advisory S Corporation LLC Payroll Services





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