Do you think income tax extensions are just for people who don't have their act together? Not quite. A personal or business income tax extension is easy to obtain and can be useful for just about any taxpayer or business owner. Whether you want more time to ensure that your tax return is accurate, or a chance to make certain that you've claimed all possible tax credits and tax deductions, there are many situations in which a tax extension can help.
Here are six reasons why you should consider filing an income tax extension:
1. A tax extension gives you more time to get paperwork in order.
Why rush around during the first two weeks of April if you don't have to? With a tax extension, you can take your time and ensure that your tax return is accurate and that you've taken advantage of every tax benefit you're entitled to. Many individuals and business owners file for tax extensions every year as a matter of course, just to ensure they have the time they need.
2. Your tax accountant will be able to focus on you.
If you use an accountant to file your taxes, chances are that they’re just about going insane by the end of March. Break away from the herd by requesting a tax extension and make sure you get the professional attention you've paid for (from someone who's actually slept in the last week or two). Note that you don't need a tax accountant to file for a tax extension. You can do it online yourself, right here at FileLater.com.
3. A tax extension helps you avoid the chaos of filing season.
Don't stand in line at the post office or wait around forever to get your accountant's attention. Getting a tax extension means you can take your time and wait until the rest of the country is done with the April deadline frenzy.
4. You might be able to take advantage of new tax laws.
Tax laws are continuously changing. If you obtain a six-month extension to file your tax return (in October) you just might be eligible for a brand new tax deduction or a change in taxpayer status.
5. A tax extension can lower your chances of an audit.
The government loves quotas, and IRS agents must audit a certain number of tax returns every year. However, they usually fill their quotas by the April filing deadline. Take yourself out of the audit pile by getting a tax extension and breathe a sigh of relief.
6. The IRS doesn't need a reason ― so why should you?
The IRS automatically grants a six-month tax extension to anyone who accurately fills out IRS Tax Form 4868 (for personal tax returns) or IRS Tax Form 7004 (for business tax returns). So take your time with your taxes this year and file for your tax extension online in just minutes.