Please note, extensions cannot be filed after the tax filing deadline.
Perhaps you have someone who is missing documents or are still not quite ready to file their taxes by the end of tax-season, they can file an Application for an Extension, which can extend their filing deadline until October 15th.
But, what is an extension? An extension gives a person an extra 6 months to FILE a completed tax return. For people who owe taxes, the failure to file on-time penalty is usually charged if your return is filed after the due date and is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25% of balance due. If your return is more than 60 days late, the minimum penalty is $450 (adjusted for inflation) or the balance of the tax due on your return, whichever is smaller. (that would stink to have to pay that on TOP of any balance due!
· Who should file an extension? Anyone who knows or thinks they might owe money on their return but isn’t ready to file.
· Who does not have to file an extension (but can if they want)? Anyone who knows they will get a refund but isnt ready to file their taxes by the end of tax season doesn't need to file an extension because there is no penalty for filing late if you do not owe.
· If in doubt, file an extension—can’t hurt.
What an extension does not do: It DOES NOT give the taxpayer extra time to pay any balance due. All tax liability is due by the tax season deadline (generally April 15th) whether or not an extension is filed. We live in a pay-as-you society not pay when you feel like it society.
Click on image to download How-to PDF about Extensions and learn more!
Perhaps you have someone who is missing documents or are still not quite ready to file their taxes by the end of tax-season, they can file an Application for an Extension, which can extend their filing deadline until October 15th.
But, what is an extension? An extension gives a person an extra 6 months to FILE a completed tax return. For people who owe taxes, the failure to file on-time penalty is usually charged if your return is filed after the due date and is usually 5% of the amount due for each month or part of a month your return is late. The maximum penalty is 25% of balance due. If your return is more than 60 days late, the minimum penalty is $450 (adjusted for inflation) or the balance of the tax due on your return, whichever is smaller. (that would stink to have to pay that on TOP of any balance due!
· Who should file an extension? Anyone who knows or thinks they might owe money on their return but isn’t ready to file.
· Who does not have to file an extension (but can if they want)? Anyone who knows they will get a refund but isnt ready to file their taxes by the end of tax season doesn't need to file an extension because there is no penalty for filing late if you do not owe.
· If in doubt, file an extension—can’t hurt.
What an extension does not do: It DOES NOT give the taxpayer extra time to pay any balance due. All tax liability is due by the tax season deadline (generally April 15th) whether or not an extension is filed. We live in a pay-as-you society not pay when you feel like it society.
Click on image to download How-to PDF about Extensions and learn more!
