This is the latest post in Tax Extension Center’s daily series of The Top 100 Reasons to File a Tax Extension. Our goal is to educate taxpayers that filing a tax extension can be a valuable tax season option for you or your business because it saves time, stress, and even money.
Here’s reason #85: you’re missing a 1099.
Missing or insufficient paperwork is a very common reason why more than 15 million Americans file a tax extension every year. And the form that is probably the most to blame is the 1099 (also known as the 1099-MISC).
In case you’re not a freelancer or an independent contractor, think of the 1099 as an equivalent of the W-2 you receiver every year.
So why do so many people who are missing a 1099 file a tax extension? That’s easy, because it gives you more time to file your taxes without penalty while you wait for the outstanding for to arrive. Oh, and it’s automatic!
Ever filed a income tax extension? Whether you are new to tax extensions or you are one of the 15 million invidious and businesses that file one very year, remember that income tax extensions do not give you more time to pay what you owe the IRS for income taxes. You are still responsible for paying what you owe by midnight on April 15 (or March 15 for the corporate taxes). An 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.
Have any questions or feedback about tax extensions? Let’s talk about it in the comment section below.