With this year’s April 15 tax deadline around the corner, it may be time to explore alternative filing options if you have yet to start your tax return preparation. Although it’s important to make every effort to submit your taxes on time, fortunately, the IRS offers the opportunity to file an extension if necessary. Doing so will allow you to remain in good standing with the government and provide extra time to complete your return. Here is what you should know before making this request.

Understanding Tax Extensions

How an Extension Works 

If you require more time to work on your tax return preparation, you may file a form asking the IRS to extend your due date. If approved, you will receive six additional months to submit your taxes without incurring a late penalty. This will make your new deadline Oct. 15. However, while an extension will give you more time to file, it doesn’t provide more time to pay any taxes you owe. You will still need to take care of your tax bill by the original deadline of April 15 or risk facing substantial penalties.  

Reasons for Needing an Extension 

Procrastination is not the only reason to request a personal or business tax extension. There are a variety of circumstances that might make it difficult to get your tax return preparation done on time. For example, you may not have all the documentation you need to file a complete return, or you might experience a serious illness, death in the family, or natural disaster. Additionally, you might find that waiting to file will give you the chance to acquire more deductions and reduce your tax obligations.

How to Decide if You Should File an Extension 

Consulting with an accountant will help you decide if filing an extension is the best option for your situation. They will carefully assess your finances and tax position to determine if an extension will allow you to benefit from new tax laws, take advantage of extra credits and deductions, or submit a more accurate return to avoid an audit.  

If you think you are going to need an extension on your taxes, contact the professionals at Gillette & Associates LLC CPA for assistance with the filing process. Backed by more than 20 years of experience, they have earned a solid reputation for providing the La Crosse, WI, community with an array of high-quality accounting services. They offer both individuals and business owners expert tax return preparation and strategic planning to minimize liabilities while maximizing refunds. Call (608) 784-8355 to schedule an appointment, or visit them online for more information on how they can help you accomplish a successful tax season.