In 2014, more than 138 million taxpayers in the U.S. filed for an extension on their taxes. Why? Many Americans use these additional months to reflect on their finances, collect records, look at other options and seek advice. Late is better than filing an incomplete or incorrect return.
Who files for extensions?
With a little bit of research, you will find the reasons to file for an extension will considerably outweigh the alternative, especially if you are:
• the beneficiary of an estate or trust;
• shareholder or partner of any capacity;
• a business owner;
• a first time home buyer;
• contributing to an IRA or other accounts that need to be reported;
• still waiting for information or forms; or
• experiencing scheduling conflicts during tax season.
How do extensions work?
The deadline to file for an extension is April 15; think of it as a temporary trade for your tax return. Once you file, the extension is automatic. That being said, filing for more time to finish your return does not mean you are filing for an extension to pay if you owe taxes or fees.
What do you need to file?
• Your name
• Your Social Security number(s)
• An estimate of your total tax liability
• Total of what you’ve already paid
• The amount you’re paying with the extension, if any
We’re bombarded during tax season with a constant stream of tax filing reminders that includes the ever-talented, sign-flipping acrobat around the corner from your office telling you April 15 is rapidly approaching. Filing an extension gives you more control over your taxes and deadlines, giving you the opportunity to do it right the first time.
We’re filing extensions daily at Maddox Thomson for our clients. Call or email us today if we can help.