| A tax extension is simple a process that gives you an | | | | owe. Filing it does not alter that integral fact. When you |
| additional six months to file your tax reporting forms. | | | | file your extension, you must send a check for at least |
| For some taxpayers, a tax extension can be a good | | | | ninety percent of what you owe or you will be in |
| idea, and for others it may not be a good idea at all. | | | | arrears and interest, penalties, and fines will begin to |
| Let's have a look at the pros and cons of filing it in | | | | accrue. |
| order to help you reach the best determination for | | | | If you file it, you will not be able to file electronically. All |
| yourself. | | | | filing after April 15 must be done through the standard |
| PROS | | | | postal service and cannot be done electronically. |
| A tax extension gives you an extra six months time to | | | | The Internal Revenue Service will most likely not notify |
| file your return. When you know that you cannot have | | | | you that they have received your extension. You will |
| your taxes done in time, for whatever reason, it is a | | | | need to contact them if you wish to receive |
| good option. It is always better to get an extension | | | | acknowledgment that your extension filing was |
| than to file an incomplete return. | | | | received. |
| A tax extension does not raise the likelihood of an | | | | Delaying the inevitable is not always a good idea. If you |
| audit. Some people, incorrectly, believe that a tax | | | | are the kind of personality type who tends to put |
| extension is a red flag for the auditors. | | | | things off, it might be better just to file on April 15 with |
| There are no fees, penalties, or interest associated | | | | the rest of us. You are going to have to deal with it by |
| with a tax extension. | | | | October anyway, and you cannot put it off again |
| There is no final moment rushing to file your return. For | | | | unless you want to get in serious back tax trouble with |
| many taxpayers, getting the income tax return filed in | | | | the Internal Revenue Service. |
| time becomes very stressful. Why not lower your | | | | Let's say it once more. You still must pay your taxes |
| stress level and file an extension? Then, you won't | | | | by April 15, extension or not! Too many people make |
| have to worry about rushing around to get your | | | | this mistake and find themselves owing much more to |
| income tax return in on time. | | | | the IRS than their initial liability. You have got to send a |
| CONS | | | | tax payment check with your extension. The |
| Filing an income tax extension does give you more | | | | extension delays the due date of the paperwork for |
| time to get your paperwork in, but it does not buy you | | | | six months. Your payment obligation is not extended. |
| time to pay. Your taxes are still due by April 15, if you | | | | |