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 #58: you haven’t reconciled Quickbooks yet.
Life gets really busy sometimes. And the busier it gets, the less time there is to do things like bookkeeping (unless you have a simple bookkeeping partner). This is especially true if you’re a business owner. Most of your time is spent trying to grow the business.
When months are left unreconciled, it makes the daunting task of filing taxes seem even more daunting because you have to reconcile and fill out all of those confusing tax forms.
If this sounds familiar, consider filing a tax extension. You’ll get an extra six months (five months for some businesses) to get all of those old bank statements uploaded to your tax software. And you’ll avoid the late filing penalty.
Are you considering filing a tax extension for the first time? Maybe you file one every single year no matter what. Either way, remember that an IRS 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 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 tax extension penalties and interest.
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