We are edging closer to April 15th and, as the deadline approaches, you may be wondering if it’s smart to file an extension or not. Everyone’s situation varies, but it’s important to remember that it’s not necessarily a bad thing to file an extension. Filing for an extension is more common than you might think. In fact, we here at Tax Goddess extend almost all of our clients. So, as we are smack dab in the middle of filing extensions right now, we want to make sure that you are filled in on all you need to know about filing extensions in 2016!
The due date for filing extensions this year is Monday, April 18th.
Extensions are only an extension of time to file, NOT an extension of time to pay. You may get put on the extension list, but please make sure you make your payment by the deadline. If you file an extension, but still fail to make your payment by April 18th, please remember that you may be liable for penalties and interest from the IRS.
So if you’re curious why we have such a mad rush between February and April, Tax Goddess wants to make sure we have all your numbers correct, so you can rest assured that you are making the appropriate payment (at least as close as our best guess can allow).
So what’s the advantage of filing an extension?
The biggest advantage of filing extensions is that it gives you more time to get all of your paperwork in order. Sometimes, people don’t receive all their forms in time, and filing an extension may give you the extra time you need to figure this out.
Remember, the more complete your information is, the better estimate we can make for your extension. If you know that you are missing something, please let us know so that we can make sure to get your estimates right.
Don’t forget – we file extensions to get you out of the audit pool!
Filing an extension lowers your chance of being audited.
Tax Goddess will start sending out extension estimates and first-quarter vouchers as early as March 15th. If you think you are someone who may be receiving an extension, make sure you’re on the look out for these! And if you have any questions, always remember you can contact us anytime.