Tax season is underway and with only about one month remaining before the federal due date of April 15, which happens to be April 17 this year due to the weekend and holiday, the time is now to determine if you need to file an extension. While most returns will be filed prior to the initial deadline, some individuals need extra time to finish calculating their taxes or completion may have been delayed for other reasons associated with their personal lives or the return itself.
When these factors arise, then electing to file an extension can be beneficial to the taxpayer in terms of completing all of the required documentation but should not be considered unless absolutely certain that the extension is being filed for correct reasons.
The actual process of filing an extension is not complicated. An individual must complete the Internal Revenue Service (IRS) form 4868
, which is the application for fling the extension and is simply comprised of some demographic information in addition to payment information. Once processed, the taxpayer is granted a six-month addition and their tax forms are not due to the IRS until October 15 but may be filed at any time prior to the deadline.
One important thing to note on the filing of an extension is that a granted grace period for the time to submit a tax return is NOT an extension on the time required to pay.
If you owe taxes then that money remains due by the April 17 deadline and if not submitted will begin to accumulate penalties and interest, until all funds due have been submitted. For this reason, it is never a good idea to consider filing for an extension, simply because you may not have the money readily available to cover your tax debt.
Extensions are normally filed for those who are waiting on vital information on which their return is reliant, such as K-1 information, 1099 forms, or other statements regarding the potential income or loss associated with varying stocks and bonds attributed to the taxpayer. When these forms are not in hand, then the figures required for a complete return are not available and thus a return would benefit from an extension. Even if these forms are available prior to the deadline, comprising the return completely may not be possible and if in question, a return extension is warranted.
Other factors include travel or work and being unavailable during a majority of the tax season. Illness to either the taxpayer or spouse may keep things from getting completed in a timely manner or you may believe some of your paperwork needed for filing contains inaccurate information and must be corrected prior to completion.
The tax preparation and accounting experts at Bloch, Rothman, and Associates
can assist you with determining whether filing an extension is necessary based on the information you provide. They can also help with in depth explanations for any of the questions you may have in regards to your return, prior to tracking all expected refunds at both the state and federal levels. While known for providing expert tax advice and assistance, they can also help with a variety of accounting, bookkeeping and payroll options on either an individual or business level. Whether you need an explanation for a random tax form - such as the 4868, are potentially in need of appropriate representation in tax court, or could use help with any other various services, our tax experts are ready and willing to assist. Call 303-321-7160 or contact us
for your initial free no obligation consultation.