Extensions

What is a Filing Extension?

Filing an extension moves the due date of the tax return you are extending later in the year. Individual tax returns and business tax returns can be extended by individuals or business who are unable to file a tax return by the normal due date. Most extensions are for six months- so when an individual income tax return (normally due April 15th) is extended the new due date is October 15th. When our office files extensions it is usually because we are either missing tax documents from our clients or received documents too late to complete the returns by the filing deadline. Please note: if you extend a return it is to your advantage to file the actual return as soon as possible, interest on any underpayment (see below) begins accruing the day the return was originally due. So, waiting until the last minute of the extended deadline (October 15th for individual income tax returns) increases the amount you’ll pay in interest/penalties.

Important:

A filing extension is an extension of time to file taxes, not an extension of time to pay. Payments are still due by Tax Day.

How do you make a payment if you don’t know how much you owe? You make an estimated payment with your extension. Your accountant can advise you on how large a payment to make with your extension, but it’s important to understand that any recommendation will be a best guess given the information of the moment. The fact that you’re extending means your accountant doesn’t have enough information to file your return. For that same reason, they don’t have enough information to tell you what you’ll owe with certainty.

If you extend and owe more taxes than your estimate (or if you didn't make an estimated payment at all), you will also owe interest on those taxes and, sometimes, penalties. This is a good reason not to extend or wait until the last minute to provide important tax documents to your accountant.