April 15th is approaching fast, and if you’re not going to get your taxes finished by then, you need to file an tax extension. The IRS allows a six-month tax extension; as long as you file for it, you will not be socked with any fees for not filing on time.
Now before you go and file an extension there are a few things you will want to know:
- Filing an extension will not give you extra time to pay. If you are purposefully filing a tax extension so you don’t have to pay the taxes you expect to owe, that will not work. Or, if you know that you are going to owe taxes, you must still determine an estimate on what you owe and pay it. Also if you don’t do this, you may get hit with a penalty for not paying on time.
- You may not be eligible for a tax extension. There may be a chance that you do not qualify for a tax extension. Contact A.Mazzo Accounting Services today to find out.
- Extension doesn’t give you extra time to fund your IRA. You have until July 15th (typically April 15th) to contribute to your IRA and have it count for last year. This is regardless of if you file a tax extension or not.
There are a few benefits to filing a tax extension, and if you qualify to file, here are a few of the benefits.
- Extra Time To File. If you ran out of time, filing an extension will give you that extra time you need to file. Keep in mind that even though you have until October 15th, do not procrastinate!
- Reduces Some Penalties. If you file for an extension, you will not get hit with the late filing penalty. You must file your taxes by October 15th to insure you will avoid having to pay it as well. If you file after October 15th there will be a penalty you will have to pay.
- Improve Accuracy on Return. If you chose to wait until the last minute to do your taxes, then you also will most likely rush through them, if you do them yourself. By filing for a tax extension you will have more time to make sure they are accurate!
If you think you need to file a tax extension, contact us today and we can assist you through the process. As always, should you need help with having your tax returns completed, contact A. Mazzo Accounting today. We can assist with your individual and business tax returns.
A Mazzo Accounting provides a variety of tax and accounting services to individuals and businesses in the Wyomissing, Reading, West Reading, Sinking Spring and Kenhorst areas, as well as towns and villages around the Greater Reading area. Our services for small to mid-size businesses include taxes, payroll services, accounting services, and bookkeeping services. We also provide a variety of services for individuals including tax return preparation as well as some accounting assistance.