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 #68: you started a business this year and have no idea where to begin with business taxes.
All new business owners have been there. The slap-in-the face reality gives you when you’re about to file your income taxes for the first time as a business. Damn the learning curve!
Chances are you have been so busy trying to grow your business that you don’t even know when business taxes are due (here’s the business tax deadline). Add to that the complexities of new tax forms, confusing new terminology, bookkeeping, deductions, write-offs, and everything else that make taxes so darn fun and your head will be spinning.
A business tax extension allows you to take a deep breath, relax, and figure things out on your own time. Depending on your business type, you’ll get an extra 5 months (for corporations) or 6 months (most all other business types) to either hire a good accountant that can help you out, or master the art of business tax filing on your own. Either way, by filing an extension, your business will avoid paying those annoying 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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