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.
Here’s reason #30: a divorce has made your life more complicated tax-wise.
Divorce all by itself is often complicated. When it gets to be tax season, it is usually even more complex. Those that have been recently divorced need to figure out things like filing status, how to classify alimony, and what to do with child support payments.
Of course it’s not impossible to figure out. But like a lot of the reasons we’ve posted so far in out Top 100 list, significant life changes (like divorce) tend to cause enough added complexity that an extra 6 months to file your taxes makes sense.
Whether you are new to IRS 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 tax extension penalties and interest.
Have you ever filed an IRS extension to file taxes for yourself or your business? Thinking about filing one this year? Drop me a note in the comment section below.
