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 #19: you thought you could do your taxes without an accountant. Wrong!
I actually hear this reason from a lot of people. One of two scenarios usually occurs – either a person is inspired by the New Year and is determined to do their taxes on their own to save on the fee to an accountant. Or, it’s April and an available accountant is too hard to find, leaving no other option but to file taxes on their own.
Many people in both cases end up filing a tax extension. And the reason is the same – taxes just aren’t something that everyone can grasp. After all, there’s math involved! Plus, the tax code is far from simple. Many get frustrated trying to figure out liabilities and confused determining what can and can’t be deducted. Kudos to those that can figure it out. It just isn’t easy.
A lot of small business owners have similar experiences as well. They have goo intentions, but ultimately find the complicated world of corporate taxes and pass through entities is too much to tackle.
I’m not trying to discourage you from saving a few bucks and moonlighting as a CPA. Have at it. Even more reason to take advantage of an extra six months you get from an IRS extension so you can make sure everything is done right.
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.
