Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #54: a death in the family has made life more complicated tax-wise.
God forbid this happens to anyone who reads this blog, but it’s something that does happen to tax payers each year.
How does death complicate taxes? Unfortunately there are several ways. For example, you need to figure out what to do to produce a final accounting for the deceased, how to treat the income of the deceased as an estate (as opposed to as an individual), how to deal with inheritances, etc. It’s a shame that things are so complex given the severity of such an event.
Among the options available to a person who is affected tax-wise by a death in the family are to A) get professional tax advice and B) take the extra time a tax extension afford you while you deal with the death and sort things out.
No matter the reason, you might be considering filing an IRS extension for the first time. Or maybe you file one every single year. Either way, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15. An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make a payment could make you subject to tax extension penalties and interest.
Any thoughts, questions, or comments about tax extensions? Let’s chat in the comment section below.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #53: avoid the long, annoying lines at the post office.
It happens every year. I see it at the post office right down the street from me. Starting in the first few days of April, I notice that the line starts to creep out the door a couple of hours per day. By April 15, not only is the line permanently out the door, it’s around the corner and down the block. Everyone in line looks like they are competing to be voted the most miserable person on the planet.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #52: as long as you know your name and Social Security Number, you can’t be rejected.
We’ve mentioned before in reason #3 – a tax extension is automatic – you don’t need a reason to file a tax extension. The IRS doesn’t ask you for one.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #51: even if you’re expecting a refund, you still need to file taxes.
Some taxpayers will deliberately not file their taxes on time because they feel no urgency since they are owed money back from the IRS.
There are two reasons why this is a flawed philosophy. First, if you’re expecting a refund you should actually file early so that you get your money sooner. The IRS won’t just send you a check in April because they know they owe you. Most people know this. They are the ones filing in January and February. But there are others who believe that their money is on the way – regardless if they file any paperwork.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Halfway to reason #100 on our list! Here’s reason #50: you’re missing a 1099.
The broader reason here is you’re missing paperwork. You’ve either lost it, or it hasn’t been delivered to you yet. And a 1099 is not the only type of form that falls under our reason for today. It could be a 1098, a W-2, or even a W-9. No matter the type of form you’re missing, it’s preventing you from filing your taxes on time (either for yourself or your business) because you need it to properly complete calculations.
In such a case, it makes sense to take advantage of the extra time a tax extension afford you to either A) spend more time to find the missing paperwork or B) do what it takes to get another copy.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #49: you can’t afford to make a tax payment, but you don’t want to compound the issue by not doing anything.
During tax season, you have 4 options when it comes to filing your taxes:
For the sake of reason #49, let’s talk about options 3 and 4.
Option 4, despite being popular, is not really a good option. Not paying what you owe is not advised, but also easier said than done for a lot of Americans (especially these days). But choosing not to at least file a tax extension can make you subject of late filing penalties.This is much more avoidable than than paying what you owe.
That brings us to Option 3 and reason #49 – if you at least file a tax extension, then you avoid the late filing penalty. When money isn’t readily available enough to pay what you owe, saving as much as possible is an attractive option.
You might be considering filing a tax extension for the first time. Or maybe you file one every single year. Either way, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15. An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make a payment could make you subject to tax extension penalties and interest.
Got any thoughts about tax extensions? Let’s chat in the comment section below.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #48: you’re a serial entrepreneur with several LLCs for your rental properties.
Some people are obsessed with starting businesses. They don’t just start one, they start three or four and keep them all running at the same time. And usually this type of business maven has some equity in a few others.
Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #47: your accountant hasn’t slept in a week because he’s so busy.
It’s tax season. I know it’s not even March yet, but ask your friendly accountant and he or she will tell you they are already very busy. So busy, in fact, that the days are getting longer and the night shorter. And that means sleep is already at a premium. Imagine how bad things get when all of the procrastinators show up in April.
