Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #51: even if you’re expecting a refund, you still need to file taxes.
Some taxpayers will deliberately not file their taxes on time because they feel no urgency since they are owed money back from the IRS.
There are two reasons why this is a flawed philosophy. First, if you’re expecting a refund you should actually file early so that you get your money sooner. The IRS won’t just send you a check in April because they know they owe you. Most people know this. They are the ones filing in January and February. But there are others who believe that their money is on the way – regardless if they file any paperwork.
Second reason: no matter what, it’s still a good idea to file your taxes on time or at least file a tax extension. Not filing anything means you are delinquent in the eyes of the IRS. A tax extension removes the delinquent label and buys you more time to file.
You might be considering filing a tax extension for the first time. Or maybe you file one every single year. Either way, 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 tax extension penalties and interest.
Any thoughts, questions, or comments about tax extensions? Let’s chat in the comment section below.
