Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. This series is intended to show taxpayers that a tax extension is valuable because it saves individuals and/or their businesses time, stress, and even money.
Reason #25: you just became an American citizen and can’t figure out where to begin with this whole tax thing.
If you’re a new American citizen or a contractor who is filing taxes in the US for the first time, let’s chat a little bit about the Internal Revenue Service (better know as the IRS). I’m not a CPA, but I can tell you this: keep the IRS on your good side. In other words, don’t ignore your tax obligations.
Another tip: a lot of long-time citizens have troubles filing their taxes. So don’t feel bad if you are overwhelmed with tax jargon, tax laws, penalties, and paperwork. Nearly 10 million US taxpayers filed a tax extension in 2009. It’s a sensible option (and a good reason), especially when you’re filing for the first time.
Whether you are new to tax extensions or file one every year, 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 penalties and interest.
Have you ever filed an extension to file taxes for yourself or your business? Thinking about filing one this year? Drop me a note in the comment section below.
