FAQs: Understanding Tax Extensions
What does it mean when I file an extension?
Imagine you’re asking the IRS for a little more time to make sure everything on your tax return is just right.
By filing an extension, you get six extra months to gather your papers and make sure you don’t miss out on any tax breaks. This moves your due date for filing your returns to October 15th.
But remember, if you owe any taxes, you still need to pay what you owe by April 15th!
Why would my CPA say it’s a good idea to ask for more time?
Sometimes there's a lot of information to sort through or maybe some important paperwork hasn't arrived yet. By getting an extension, we have more time to carefully check over everything. It's like making sure all the puzzle pieces fit perfectly before we show the finished picture to the IRS.
Does getting more time mean I’m more likely to get a visit from the IRS?
Nope! Filing for more time doesn’t make the IRS more likely to knock on your door.
What’s so good about taking extra time?
Besides giving us more time to double-check your return, you might even find some extra chances to save money on your taxes. And it’s usually better to wait and file everything correctly than to rush and have to fix mistakes later.
Is there anything special I should do if I’m getting more time?
If you think you owe taxes, you should still pay what you guess you owe by April 15th. It's like putting down a deposit. If you pay more than you end up owing, you can claim a refund to get the overpayment back.
If I’m pretty sure I’ll need more time, what should I do now?
Just keep sending in your info as you get it, and talk to your CPA about it. They can help make sure everything's on track and possibly avoid needing an extension.
Are the due dates the same this year?
Yes, for 2024, the dates haven't changed. April 15th is the main date to remember for individual returns (Form 1040), and October 15th is the extended due date.
Filing an extension is a common practice and can be a smart move to ensure your taxes are done right. Take the extra time if you need it, so you can rest easy knowing your tax returns accurately reflect your situation.
