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 #42: Q1 is your busy season for sales.
A fact of life for many companies is the first three months of the year are crucial for sales. Budgeting, hiring, spending of all types are determined by how much money is brought in during the first quarter.
If that’s the case and the business is classified as a corporation, then there’s not a whole lot of time to prepare and file corporate tax returns while sales is occupying everyone’s time. The corporate tax deadline is March 15 – just a mere 11 weeks into the New Year. That deadline comes up awfully fast when the rest of the year depends so heavily on early-year sales.
The extra 5 months a corporate tax extension provides means peace of mind. That extra time means a business can get concentrate on their bread and butter those first three months and then think about how to get their taxes done.
Maybe you are new to filing a corporate tax extension. 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 the the deadline. 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.
