1-800Accountant Explains Pros & Cons of Filing Tax Extension

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1-800Accountant explains the advantages and disadvantages of filing for a tax extension with the IRS if you need more time to file your return.

The old saying goes “something’s are better late than never” and that sure applies to filing taxes each year with the IRS. If for some reason a taxpayer cannot file his or her return on time, the IRS allows a taxpayer to file an extension, which typically gives them 6 months after the traditional April 15th tax-filing deadline. But, as with most things, there are pros and cons to filing an extension.

Advantages of Filing a Tax Extension

The biggest – and most obvious – advantage to filing a tax extension is that it buys a taxpayer more time to get financial records in order to properly prepare and file a tax return. Filing a return with inaccurate information could result in a higher tax bill or – worse – an audit by the IRS. By having more time to ensure all lines on a return are completed adequately and appropriately, taxpayers can rest easy knowing that their returns are 100% correct when they land on the desk of an IRS agent instead of submitting a return that someone had limited time to complete.

For individuals and small business owners who have a more seasonal work schedule with summers off or lighter customer loads at specific times throughout the year, filing an extension may be perfect so that they have more time after April to work on properly preparing and filing a return. In addition, it’s easier to work with an accounting firm after tax season once their workload dies down. This could help someone get the most accurately prepared return, which is what we all want, right?

Disadvantages of Filing a Tax Extension

It’s nice to get tax filings out of the way in April so that taxpayers can all focus on other priorities, such as running a small business or spending time on vacation with loved ones. Obtaining an extension basically means these filings must linger on a to-do list for a few more months, and everyone would have to work on getting this task done during the summer or early fall rather than crossing it off these lists as soon as possible.

Taxpayers must also be more patient when it comes to getting their tax refund. Taxpayers who file by April 15th can obtain their refund usually within a matter of weeks. But extension filers won’t get their refund checks until they’ve actually filed. This could be in June or July, or as late as October or November depending on when the return is filed and processed.

A tax extension simply means that taxpayers are extending their deadline by which their tax returns are due to the IRS. It does not give taxpayers more time to pay their taxes. Failing to make tax payments by April 15th could result in late-payment penalties from the IRS on top of any tax bill already owed to Uncle Sam.

For assistance with filing a tax extension, turn to the accounting professionals at 1-800Accountant. Visit https://thetaxhub.com/#/tax-extension/promo?leadid or call 727-350-9655.

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Greg Lindberg
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