“God put me on this earth to accomplish a certain number of things and right now, I am so far behind I shall never die.” -unknown
What does an extension do?
An extension gives you until October 15th to file without paying a penalty for late filing. This penalty only applies if you owe, and it does not give you an extension on paying. Payment is still due by April 15th. If it turns out that you do owe, and did not prepay your taxes, you will incur a late payment interest/penalty but it pales when compared to the late filing penalty. It costs you nothing and is the safe play.
Do I have to extend if I know I am getting refunds in the federal and all the states I file in?
To be honest: No. If you do not owe anyone, why should they worry? After all, they get to keep all your lovely money! You can only get it back if you file. And after 3 years, it is theirs for keeps. (Exception is VT – they take $50 out of your refund if you do not file or do an extension.)
How do the state extensions function?
Each state has its own individual quirks but basically follow the IRS pattern. The failure to file penalty is generally larger and easier to avoid by just sending in an extension.
How do I find out about my individual state requirements?
Google. But that is also what we are here for. If your state requires an extension, we will send it in for you if we have your information inhouse for each state you worked in. 😀
I usually get a federal refund, but owe my home state, should I be concerned with sending in an estimated payment by April 15th?
We can only answer this based on what most of our clients do. Most will file the extension to avoid the larger penalty, but not sweat the smaller stuff of the failure to pay penalty. For most clients, these individual state penalties average $20-60 but can be as high as $100 or more.
What is the IRS Failure to File penalty?
This is the penalty for not filing your return by the due date (April 15 or October 15 with an extension filed). It is only applied if there is a balance due on your return. The penalty is 5% on the balance that you still owe, calculated per month, but maxed at 25%.
What is the IRS Late Payment penalty?
Think of this as a late payment fee. It is a penalty ranging from ½ to 1% of your unpaid taxes, calculated monthly. It is also maxed out at 25%.
Why do I pay interest on top of the late payment fee?
There are a few variables that take too long to explain here, but basically: The governments expect their money to be sent to them throughout the year (by quarterly estimated payments or paycheck withholding). When you don’t pay on time, the government is loaning you the money, so you get to pay the interest. Penalties are imposed to encourage compliance.
While we sympathize with you over the frustrations of not being able to get everything done and completed on time, we would like to encourage you to still extend with us, rather than go off and find any willing body to prepare your taxes. Joe’s saying is always: “Better to do your taxes late and right, rather than in a rush and wrong. There is another advantage to extensions. You get to talk with us after April 15th when we have more time to answer all your questions, not just the 30 minutes we allow for before April 15th.
We do hundreds of extensions each year, so you are not alone. Many of our clients travel or are from other countries, gathering all the documents is difficult. After tax season, we will take a day or two break, and then pick up where we left off. Those who send in their completed workbook and other information will be put in a queue and kept in order, so still send us your information ASAP.
Basic Extensions are FREE (filing the form 4868 without a tentative screening). If we have all your tax documents inhouse before midnight on March 15th, we will also do a free tentative screening to see if you may owe anything. If you do, we will provide vouchers for Federal and state only.
We submit the extension form 4868 for free for our clients (and state extensions if required – If we know which states you worked in). However, if you want a tentative screening with vouchers sent to you if you owe, you need to click the link and follow the steps for the extension with tentative screening. We do charge $25 to do the tentative screening if you have not sent all your tax documents to us by March 15 but we will issue a $25 credit off your tax consult invoice when we complete your taxes. Just think of it as pre-paying the $25 for your consult. This is non-refundable if you do not complete your return with us.
Our extension policy:
If you have all your forms uploaded to our office by March 15th, 2020 (and we are unable to fit you in for a tax consult before April 15th ) we will do an extension for you with a tentative screening to see if you may owe. (An extension agreement form will be emailed to you to confirm this.) If we do not have all your forms in house by March 15th, you need to fill out an extension request on our website. ( See link provided)
PA, OH, IN, MO state residents: We do not file municipal extensions. Please check with your local taxing authority to see what you need to do. If you need a copy of the Federal 4868, email us, and we will forward it to you.
We love emails. They can be answered at any time, day or night. :D
Please note: Your inquiry is private. We do not share your information, nor directly solicit, message or “friend” you through social media unless initiated/requested by you.
We are unable to answer questions related to the use of tax software programs.
If you haven’t heard from us within 48 hours, please email us directly at firstname.lastname@example.org
The most secure way to send us your documents is to utilize this link that will allow you to select your saved files and upload them via our encrypted site.
Documents are processed within 24 hours EXCEPT ANY DOCUMENTS SENT ON WEEKENDS; they will be processed Monday or Tuesday at the latest.
Mail: 46 St. Mark Rd., Taylors, SC 29687
You will be directed to a separate PayPal portal page to complete the transaction. A PayPal account is not required.
Taxpayers can make electronic debit or credit card payments through our official IRS payment website, Drake e-Payment center, at 1040paytax.com. Convenience fees for credit cards (1.97%) or debit cards ($2.58) will be applied at the time of payment. Use this link to make your payment.