There are few deadlines in the year more important than April 15th. Every adult in the nation is affected by tax day, and all can feel a little stress because of it. However, sometimes that April 15th deadline seems to come sooner than we would like it, and there’s just no way to get income taxes filed on time. That’s why the IRS offers a tax extension option to individuals and businesses who cannot meet the April 15th filing date. This gives taxpayers an additional 6 months to properly fill out and file their tax returns.
Feeling a little guilty about needing extra time on your taxes? Don’t. Millions of tax extension are filed each year.
Here are 6 reasons why filing a tax extension is a good idea:
- It offers the chance to do it right the first time. The IRS would rather you file your taxes accurately the first time they receive them, rather than waiting for you to make corrections and fill out an amended return. It also saves you time by making sure your information is correct when you fill out your return and not having to rush through and make simple errors.
- Returns that have been extended are less scrutinized than amended returns. A tax extension request doesn’t raise any red flags with the IRS, but amended returns sometimes do. The IRS will likely not be suspicious of an extended return and you are not more likely to be audited because you submitted one. However, filing a tax extension does not decrease your risk of being audited either.
- Extensions are easy to file. All it takes is one quick form sent to the IRS (Form 4868) and you’ve got an extra six months to gather your paperwork and fill out your return. Keep in mind though that a tax extension doesn’t give you more time to pay your tax obligation; it only gives you more time to file your paperwork. Your tax payment is still due by April 15th.
- Extensions are automatic. You don’t need to wait to hear back from the IRS if you filed an extension on your personal taxes. As long as you submitted your request on or before April 15th, the extension is automatic and you will not be notified.
- It allows you more time to file. The most obvious and rewarding reason for filing a tax extension is that it can help you breathe easy for a while if April 15th came just a little too quickly this year. A tax extension gives you six extra months to gather important paperwork like 1099s and K-1s.
- You can work with a professional CPA. If you didn’t have time to squeeze in an appointment with your CPA during the official tax season, a tax extension gives you plenty of time to do so. Your CPA will likely have more time to meet with you after April 15th, and it may work better for your schedule, too. Consulting a tax professional will help you feel secure in the accuracy of your tax return.
Other posts that might interest you:
Top 10 Things You Should Do If You File a Corporate Business Tax Extension
Q&A: How to file a corporate business income tax extension with the IRS
Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?
Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!
Q&A: What if I can’t file my corporate business taxes by my IRS tax extension deadline?
Q&A: Can I file a second IRS tax deadline extension for my corporate business taxes?
Q&A: How do I file an amended tax return for my business?