You’re not ready? No problem! You can file an extension. Many people think that filing an extension is a bad thing, but we think it is a GREAT thing! My husband and I always file one, because there are lots of benefits:
- You get an additional 6 months to file your taxes!
- Have you ever received a tax form after you filed your taxes? Then you have to file an amendment to your original return. Filing an extension can help avoid the issue of missing or inaccurate information on your tax documents.
- Some tax professionals theorize that filing an extension will decrease your odds of being audited, since IRS auditors must meet quotas and try to do so early in the year.
- You have until your extension deadline to fund your SEP! This extends your ability to fund your retirement.
- Not filing an extension can cost you extra money – if you miss the April 15th deadline and don’t file an extension, failure to file penalties can add up. When filing an extension you avoid these penalties.
Note: The extension deadline for individuals and partnerships is October 15th, and for S-Corps it is September 15th.