Filing an extension helps since the income tax due date is around the corner.
Are you up against filing an extension since you won’t make the April tax filing deadline? Do you still need some information to complete your tax return? You are at the point where it would make sense to obtain a six-month automatic extension to file your tax Form 1040.
Filing an IRS Extension Gives You Time to File
The filing extension will give you extra time to get the paperwork together, but it does not extend the time to pay any tax due. You have to make an accurate estimate of any tax due and pay at least 90% when requesting an extension. Interest will be owed on any amounts not paid by the April deadline.
Filing an Extension Does Not Eliminate Payment Responsibility
Is your return complete, but you are unable to pay the tax due? We suggest you file it immediately and don’t request an extension. File your return on time and pay as much as you can toward what you owe. The IRS will send you a bill or notice for the balance you owe and will only charge interest and penalties on the unpaid balance. When you avoid filing, then you will owe penalties and interest on the entire amount owed starting April 17th for Massachusetts and Maine resident and April 15th for the rest of the USA.
Payment Installment Agreement
Of course, it is always best to pay the full amount due with your return. However, when you can’t pay the full amount due, ask the IRS to let you make monthly installment payments on what you owe. The IRS will usually work out an installment agreement on the full or partial amount you owe, just ask.
Other Extension Filing Options
The information above is only an overview of the options available to taxpayers. It shows the issues that may arise when you don’t file and pay your tax by the April 15th due date (or 17th, depending if you life in Massachusetts or Maine).
Do you need help with filing an extension?
The filing deadline is too close, so it is important to contact your tax professional when you are unable to file or pay on time. When you don’t have tax filing professional to help you, call one of our tax experts. Alex Franch, BS EA will take the right steps to minimize penalties and interest. Call him at 781-849-7200 or email him at email@example.com. You may still set up your tax appointment! We offer numerous client discounts to save you money.
Alex Franch, BS EA
Alex is a Tax Specialist and Partner at Joseph Cahill & Associates / WorthTax. He has a diverse background including a Bachelor of Science from Boston College in Mathematics and extensive military service. Alex is an Enrolled Agent and has a decade of tax preparation experience. He is passionate about serving businesses with tax and financial planning.
Sources and Resources
- Important Tax Deduction Changes Under Tax Reform
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