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.
Here’s reason #24: a foreclosure on your home has changed your tax profile.
As if going through a foreclosure on your home isn’t enough to give you heartburn, you have to know how it affects your tax picture.
Do you know what effect that painful process had on your taxes? Many Americans don’t. They need help to sort it all out. Getting that help can cost even more money – money that might not be available right now.
The extra time to file your taxes is a big reason why people who have had their houses foreclosed on like the option of filing a tax extension. It just makes sense for them and is better than making an even costlier mistake. With record levels of foreclosures in 2009, it looks like the stage is set for plenty of people to file Form 4868 and get that extra 6 months.
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.
