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.
