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 #59: you moved and haven’t received all of your tax documents yet.
Our Top 100 list already featured one reason related to moving (#13), but there’s a difference between moving and not unpacking and moving and not being able to file your taxes because you don’t have the proper documents yet. The latter happens to both businesses and individuals – especially nowadays when frequent moving to lock in the lowest rental rates is so popular.
Usually it happens by mistake. You move and forget to forward all of your mail to your new location (or your forwarding time expires). As a result, important papers (in this case important tax documents like a 1099, for example) can get lost. Then you’re not able to file becuase you can’t complete all of your calculations. By the time you order a second copy, it’s too late. April 15 is in the rear view mirror.
One option while you wait for backup documents is to file a tax extension. A tax extension gives you an extra six months to file your taxes. Most importantly, you’ll be waiting for those documents without accumulating a 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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