The tax filing deadline of April 15 has now passed but there are a few advantages for people who may have filed an extension and if you didn’t, some things to consider for next tax season. While getting all of the required information submitted before the deadline can be helpful, if you purposefully needed to get an extension on your tax return, there can be a few positives.
One of the most obvious is being allotted an additional six months of time in order to submit the tax return but a granted extension doesn’t prolong the necessity to pay any owed taxes. If you typically pay the federal government upon completion of a return, then sending in money can help to avoid any late fees and penalties. However, the push back may assist in eliminating any filing penalties which could be incurred.
Delay Interest Fees and Filing Penalty
The Internal Revenue Service (IRS) distributes penalties for late payment and late filing
on all types of tax returns. In order to avoid a late filing penalty from being administered, a properly filed extension holds those charges at bay. If you do owe, payment is still required by the April 15 deadline, but an extension can keep multiple penalties from being all charged at one time.
Extra Time For Details
Depending on the information needed in order to complete a return, an extension gives individuals more time to finish a correct return. If you’re tax situation revolves around K-1 receipts or dividend applications, it often takes time for these figures to be distributed following the beginning of the year.
Instead of rushing to complete a return, increasing the potential for mistakes, filing an extension and allowing proper time to double check a complicated return may be beneficial.
Those individuals who are prone to receive a substantial refund, often have an idea for what they wish to do with the money they are owed. If one of those ideas involves any type of holiday spending, then delaying the submission of a return and thus, the refund would allow for the windfall to occur later in the year.
This would be beneficial for those who wish to receive some extra spending money around the holidays as opposed to earlier and having to budget the money accordingly throughout the coming months.
The tax experts at Bloch Rothman and Associates
are able to assist with completing your tax return or analyzing any other factors associated with issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us
today. Available for all of your tax needs and filings there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!