Is a Tax Extension Right for You This Year?

If you can’t pay your taxes by this year’s April 18th deadline, you can always request a 60- to 120-day extension to pay. You may still be charged penalties and interest but at a lower rate. You can also ask the IRS to offer installment agreements that allow set payments each month.

Filing for an extension will allow you until October to finish up your taxes. Also, it helps you avoid failure-to-file penalties.

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Is a tax extension the right option for you this tax season?

When an Extension Is Right For You?

Missing information. Maybe you just can’t find all the correct forms to fill out an accurate tax return. Or, maybe you haven’t gotten all the forms. Forms like the Schedule K-1 or Form 1099 often arrive late because the companies that filed them had requested their own filing extension.

Incorrect forms. It isn’t too unusual for companies to make a mistake when sending out 1099s that report interest, capital gains, sale proceeds and dividends. They may even send you a notice that a corrected 1099 is on its way. If so, wait until you get it before filing your return.

Snowbirds. Seniors who spend the colder months away from their primary residences may also receive necessary forms by April 18. If that’s not until April or later, these taxpayers may want to file an extension rather than rush their tax returns.

Major life event. Going through a tough time, such as a divorce, a family member’s death, a job loss or major medical issue? Then maybe doing your taxes may not be your top priority. File for an extension and do your taxes when things get a little easier. 

Busy tax pro. If you depend on a tax professional to file your return, you may find that they are too busy at this point in the year. Instead, have your pro handle the return after the stress lifts a little. 

If you’re someone who hasn’t gotten your papers together and probably won’t before the deadline—you know who you are—request an extension. That way, you can delay your tax return all-nighter until October.

Who doesn’t need to request an extension

Those who live and work abroad, including military members on duty outside the U.S., automatically have an extra two months to file. Servicemen and others serving in combat zones typically have 180 days after they leave the combat zone to file returns. Taxpayers affected by tornadoes, floods, hurricanes and other natural disasters may be eligible for an automatic extension as well.

If you’re looking for a remedy to your tax preparation bluescall Scott A. Kunkel, CPA PC today in North Richland Hills at 817-498-1040 to have a chat.

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Source: The Fiscal Times

Scott A. Kunkel, CPA, PC

7801 Mid-Cities Blvd. Suite 400
North Richland Hills, TX 76182

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Call us now 817-498-1040 or contact us online to schedule a free consultation session.