“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
EXTENSIONS: WHAT YOU NEED TO KNOW!!!!!
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 pre-pay your taxes, you will incur a late payment interest/penalty, but is 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.
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 and extension, we will send it in for you. 😀
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 (including extensions). It is only applied if there is a balance due on your return. The penalty is a 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 are other advantages: You get to talk with us after tax season, when we have all of the time in the world to chat, rather than being squeezed into 30 min time increments while being sleep deprived from working 70-80 hrs a week.
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.
Extensions are FREE! We don’t have the heart to charge for them. Fill in an submit the form at the bottom of the page and you are done. If there are any issues, we will contact you via phone or email.
PA – OH – IN – MO 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.
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.
Mail: 46 St. Mark Rd., Taylors, SC 29687
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