Filing for a Tax Extension isn't Without Perils
Yes, the federal income tax filing deadline is slightly later than usual this year – April 18 — but it’s now nearly upon us. So, if you haven’t filed your federal income tax return yet, you may be thinking about an extension.
When are the tax extension deadlines?
Filing for a tax extension allows you to delay filing your federal income tax return until the applicable extension deadline:
- Individuals — October 17, 2016
- Trusts and estates — September 15, 2016
What are the perils of a tax extension?
While filing for an extension can provide relief from the stress of the April 18 deadline, it’s important to consider:
- If you expect to owe tax, keep in mind that, to avoid potential interest and penalties, you still must (with a few exceptions) pay any tax due by April 18.
- If you expect a refund, remember that you’re simply extending the amount of time your money is in the government’s pockets rather than your own.
Is a tax extension a smart move?
Filing for an extension can still be tax-smart if you’re missing critical documents, or you face unexpected life events that prevent you from devoting sufficient time to completing your income return right now.
Please contact Miller Kaplan today if you need help filing for a tax extension, or have questions about avoiding interest and penalties.