Tax Extension Center continues its daily series dedicated to The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable tax season option because it saves time, stress, and even money.
Here’s reason #66: you started a new business and didn’t realize you are missing a lot of documents you need to file.
In an economic downturn like the one we’re experiencing in the US, there’s an uptick in new businesses being created. Due to the lack of jobs, many ex-corporate employees have decided to take matters into their own hands and create their own company.
As a result of this trend, this year there are more people than usual filing business income taxes for the very first time. First-timers experience the learning curve of figuring out what documents are required, exactly what forms have to be filed, etc. That can be a pain, especially when you’re trying to spend your time growing your business.
While trying to climb the learning curve, a business tax extension can be a solid option for first-time business tax filers. Depending on your business type, you can get an extra 5 or 6 months to file that initial tax return. Getting the extra time is a better option than filing late because you’ll avoid late filing penalties.
Are you considering filing a tax extension for the first time? Or maybe you file one every single year like clockwork. 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 (or March 15 for the corporate tax deadline). An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make your payment on time could make you subject to tax extension penalties and interest.
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