April 15th countdown⏱️: It’s Better & Cheaper 💰💲💲to Extend 🫷🏻than Amend ☺️
Here’s a life lesson; a life take-away (way more valuable than a weekly take-away): It’s Better & Cheaper 💰💲💲to Extend 🫷🏻than Amend ☺️
The myths and truths about income tax extensions:
- Myth: a tax extension enables you to file AND pay the balance due later.(with no consequences)
- Truth: While a tax extension gives you more time to file your taxes, it does not extend the deadline for paying any tax due. When you submit your request for extension of time to file, make sure you submit your best estimate of your balance due as well.
- Myth: filing a tax extension puts you on the radar of the IRS for an audit
- Truth: the IRS is too busy running their operation to “red flag” your extended tax return
- Myth: My tax professional prefers that I send them my last missing document even at the “last minute”, so we don’t have to file an extension.
- Truth: Your accountant counts to 10 and then says “thanks so much for getting me this last piece of information. We did a great job estimating when we prepared your extension and once we finalize you may get a refund”.
Bottom line: please take your time preparing your paperwork and send your documents into your tax professional as soon as your “package” is complete. In addition, although we are aware that most people prefer to file by April 15th we will not jeopardize the accuracy or the tax results if that means rushing it out. Please be reminded that filing an extension does NOT open you to audit and actually is the best way we know of assuring your returns are correct and complete. Preparing an extension allows us all to make sure our clients are paying in the least tax possible in their situation. It also gives certain taxpayers more time to make the SEP/IRA payments that will reduce their overall tax liability AND to check with venders for potential “straggler tax documents”.
Feel free to search our website for some of our complementary resources or get in touch: Contact us if you have tax concerns, tax minimization questions or want to discuss the next steps for your business success and financial goals. Here is the link to read our blog posts; use our search box 🔍for those posts specific to tax minimization, business planning, business best practices, casualty losses, etc. and see what “pop’s” up.