No one intentionally misses the tax filing deadline, but accidents happen. Fortunately, if you didn’t get your tax return preparation done on time, the IRS will let you file an extension, giving you a few more months and reducing potential penalties. Below are answers to questions many have about filing tax extensions.

4 FAQ About Filing a Tax Extension

If I request an extension, how long will I have to file?

Taxpayers who request an extension will have until October 15, 2019, for tax return preparation. This will give you time to find any missing documents. It is also a chance to consult with a professional if your finances last year were more complicated than normal.

Do I have to pay before the extension deadline?

The extension only applies to filing your actual returns, not paying any taxes you owe. While you won’t be charged a penalty for late filing, you may be assessed a penalty for late payment; this fee is usually 5% of the total amount owed.

Are there fees for filing an extension?

The Internal Revenue Service (IRS) does not charge a fee for requesting an extension. In fact, if you get your tax return preparation done before the new deadline, getting an extension could save you hundreds of dollars. At the least, it will give you time to save up before having to pay. 

Does filing an extension increase my chances of an audit?

The IRS chooses returns for an audit based on a wide variety of factors, but requesting an extension isn’t one of them. Extending the deadline gives you time to ensure your returns are accurate before filing. This could actually decrease the chances of an audit.

Missed the tax filing deadline? Balanced Bookkeeping & Tax Services in Lincoln, NE, can guide you through the process of filing an extension and finishing your returns. No matter how simple or complex your finances may be, their tax return preparation professionals can help eliminate the stress and provide the answers you need. Visit their website for more on their tax services, follow their Facebook for more tips and advice, or call (402) 466-4272 to make an appointment today.