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Reasons to extend your income tax return |
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| There is nothing to fear about the IRS and extending. If you owe, underpayment penalty and interest do start on
April 15, so sending money with the extension might be a good idea. |
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If you have an Offer In Compromise or a bankruptcy in process, then you may not want to extend. |
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We can estimate your tax liability (if any) and send money with the extension. Any overpayment can be applied to the next year or refunded. |
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There are new tax laws each year that may have little guidance available early in the year |
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There are new software enhancements for new tax laws and other improvements that must be mastered |
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Your CPA is in maximum stress mode from Feb 15 to April 15. |
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After April 15, your CPA can devote their best attention to complicated tax matters. |
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Taxpayers with multiple tax returns should have everything drafted and integrated before filing any returns. |
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Many brokerages, partnerships and other institutions issue revised forms. |
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Many taxpayers get a refund on their prior years 401K overcontribution which often creates the need to amend. |
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Extending allows you more time to fully fund your SEP Retirement Plan. |
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As time passes, you may learn or discover additional information about the details of the tax year. |
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Many taxpayers receive K-1's after April 15 from third parties that utilize the extension strategy. |
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Again, the IRS wants money by April 15, not the tax return, we should estimate if you might owe. If nabbing a refund ASAP is important, then we file and amend later, if necessary. |
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Copyright © Mark Taylor, CPA 2023 |
