Now that the April 15 deadline has passed, your tax return preparation work for 2018 is most likely complete. However, it isn’t too early to start thinking about your options for next year. If you felt tight on time last month, you may want to consider filing for an extension next year. A tax extension can be a massive source of relief, especially if you’re constantly busy. If you’re uncertain about how a tax extension can help you, see the overview below.
More Time Means Improved Accuracy
A tax extension moves your filing deadline to October 15. These extra six months will give you invaluable time for tax return preparation. This is highly beneficial to people with more complex tax situations, such as business owners. It also ensures any deductions or credits you’re claiming are accurate. This area of tax law can be confusing, and if you make a mistake you run the risk of being audited.
You’ll Avoid Late Fees
If you don’t complete your tax return preparation by April 15 and fail to file an extension, you’ll be privy to late fees. These late fees are based on the total amount you owe, so they can become quite expensive quite quickly. An extension helps you avoid all late fees, provided you file your tax return by October 15.
You May Save Money on Tax Return Preparation
Many accountants charge more during tax season to deal with the increased volume of business. If you plan on securing professional help for your tax return preparation, you may be privy to lower rates when making an appointment during the offseason. You’ll also find it easier to schedule an appointment since the accountant you choose will have a more flexible schedule. In this sense, an extension also offers increased convenience.
If you still have questions about filing an extension, Banyan Accounting is here to provide answers. Located in Kailua, HI, these accountants will help you with tax return preparation to ensure you’re getting the most out of the credits and deductions available to you. They also offer many other essential accounting services, such as bookkeeping, financial analysis, QuickBooks creation, bank reconciliation, and crypto-currency filings. Schedule a consultation today by calling (808) 200-1040. If you’d like more information on services, visit them online.