Millions of Americans file tax extensions every year. Contrary to popular belief, filing an extension will not trigger an IRS audit. There are a number of legitimate reasons for requiring additional time to file your returns. Some of those reasons include:
- Income from a pass-through entity
- Beneficiary of a Trust
- Tax forms provided late
The reason you file an extension is not important, the IRS doesn’t ask, but what is important is ensuring that you either file a completed return or an extension by the tax deadline.
To file an extension, you’ll need:
- Your name (and spouse’s name if you’re filing jointly) and address;
- Your Social Security number (and spouse’s Social Security number if you’re filing jointly);
- An estimate of total tax liability for the tax year you are extending;
- Any withholding and/or estimated payments made during the tax year
- The amount you’re paying with your extension (if applicable).
The regular “mailbox” rules apply – so ensure your extension is postmarked or e-file accepted by the end of the day on tax day.
Remember that a tax extension is only an extension of time to file, not an extension of time to pay your balance due. If you expect to owe additional taxes and you’re filing for extension, you should include a payment with your extension request to avoid interest and penalties.
Do you need help filing your extension? Contact us, we can help!