Tax Extension FAQs

March 14, 2024

Tax Day is right around the corner – and it can sneak up on you quickly. Don’t get caught off guard this tax season! Filing for a tax extension can buy you some time to thoroughly review your taxes and file with complete accuracy without being in a rush. Here are some frequently asked questions regarding tax extensions:

1. What exactly is a tax extension?

Filing for a tax extension means you are requesting extra time to file your tax return to the IRS—but you are still required to pay your taxes by Tax Day, April 15th. To file for an extension, submit Form 4868 to the IRS by April 15th. If your extension is approved, your new tax filing date is October 15th.

2. Pros of tax extensions?

Filing for a tax extension can benefit you in many ways. First, simply having more time to go through your documents and accurately providing your tax information is an advantage. Also, you can avoid paying late filing fees, save on tax prep fees, and you’ll likely have more time to seek a potential refund. If you can’t file your taxes on time, it is best to file for an extension.

3. Cons of tax extensions?

There are a few “cons” that come with filing for a tax extension. Taking longer to file your taxes means you must continue stressing about filing them until it gets done. If you are filing for a tax extension – you still must pay off your taxes by April 15th. If you are looking for an extension on paying your taxes, the IRS offers payment plans.

4. What are some reasons to file a tax extension?

There are many reasons to file for a tax extension. Maybe you don’t have all the records and documents you need to file by April 15th. Or maybe you are working on changing your retirement plan? You may even have an emergency in your life that prevents you from filing on time. Whatever the case may be, filing an extension allows you more time to file your taxes.

5. Is filing for a tax extension “bad”?

Filing for a tax extension is not considered a bad thing. A crucial part of filing taxes is providing correct and accurate information to the IRS. Filing for an extension allows you to prepare your taxes and information correctly, and despite what many people believe, filing for an extension does not increase the odds of you getting audited.

It can be a great way to save yourself from stress and ensure you are providing correct information to the IRS. Tax season can be chaotic, demanding, and tense. If you are still struggling to decide whether you should file for an extension, contact Warren Accounting. We can help with individual or business tax preparation and provide you peace of mind.