Here are some questions and answers about tax return extensions:įiling for an extension is simple and is generally automatic. Don’t wait until you hear from the agency, she said. to discuss an installment plan for the balance. Labant said, pay what you can, then contact the I.R.S. So filers should do their best to calculate any tax due and pay it. Labant said.Īn important thing to remember, however, is that while filing an extension gives you more time to file your return, it does not provide extra time to pay any tax you may owe. Most important, filing an extension will allow you avoid a penalty for filing late, which is typically 5 percent per month of any tax owed, up to a maximum of 25 percent, Ms.
“You’re drawing attention to your return,” he said, “and that’s the last thing you want to do.” Stives said he considered extensions preferable to amended returns, which must be submitted on paper and so may receive more scrutiny. Tax preparers are feeling the time crunch, he said, and may suggest that clients file extensions, so returns can be completed at a more measured pace.įiling an extension, he said, can help reduce errors made because of haste and avoid the need to file an amended tax return. In addition to late-arriving forms, confusion over new documents, like the 1095-C issued to people with health coverage through big employers, is probably delaying the filing of returns as well, said Douglas Stives, a professor of accounting at Monmouth University and a consultant to the Curchin Group, an accounting firm in Red Bank, N.J. “If you’re missing information,” she said, “you’ll need to file an extension.” Forms like Schedule K-1, for instance, which shows income from partnerships, are habitually tardy and are becoming more common as more people invest through partnerships. Labant, director of tax advocacy with the American Institute of Certified Public Accountants.
Why ask for extra time? Extensions can be a good idea if taxpayers receive necessary forms late, said Melissa M. An extension grants an extra six months to prepare and file a federal income tax return. The Internal Revenue Service projects that it will receive 13.5 million requests for extensions of time to file this year. So with tax day approaching on Monday, it’s time to think about filing an extension. EVEN though taxpayers have a few extra days this year to file their federal income tax returns, some still won’t make the deadline.
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