All about tax extensions
Every year we put a number of our clients on extension. And this is totally okay! We’ve outlined some common Q&A below to help you understand the process in more detail.
Why are extensions a good thing?
Extensions allow our team to spend more time analyzing your tax return for deductions, credits, etc. Busy season is bananas for us, and we want to make sure nothing is missed.
Tax law is also constantly changing, even during tax season. Extensions allow us to make sure we’re taking advantage of every change on your behalf.
We’ve also seen continued amendments of tax documents (think 1099s) that come later and later each year. Rather than having to pay for an amendment, extensions give time to collect the “final” documents.
But aren’t my taxes due in April?
No - your actual tax return is on time as long as we submit them by the following dates:
For Individual filers, your taxes aren’t due until October 15
For Corporate filers, your taxes aren’t due until October 15
For pass through entities - S corps, MM LLCs, Partnerships - your taxes aren’t due until September 15
Wait, so what’s due in April?
By the April deadline the only things due are:
Your tax payment, and that’s only due if you owe money to the IRS/State.
Your tax extension
Note: For pass through entities - S corps, MM LLCs, Partnerships - the tax payment and extensions are due March 15.
Do I pay late penalties/interest if I file an extension?
Nope! You only pay penalties if:
No extension is filed
You owe money and don’t pay it by the tax payment deadline
How do I know what to pay?
We’ll guide you through this, but need all of your tax info to prepare an estimated payment to go along with your extension.
Do I increase my chance of being audited if I file an extension?
No, there is no impact to audit risk.
What If I need my return to apply for a mortgage, get a loan, etc?
We’ll absolutely do our best to get you what you need on time! This is a good reason to not delay your filing.