What It Means to File a Tax Extension for Your Personal Return
- Zachary Kamish
- Apr 2
- 2 min read
As tax season approaches, many individuals find themselves scrambling to gather documents and complete their returns before the IRS deadline. If you’re feeling pressed for time, you may be considering filing a tax extension. But what does this mean for you, and how does it impact your tax obligations? Kamish & Associates is here to guide you through the essentials of filing a tax extension for your personal return.
What Is a Tax Extension?
A tax extension grants you additional time to file your federal tax return. The IRS allows taxpayers to request an automatic six-month extension, pushing the typical April deadline to October. However, it’s important to understand that this extension applies only to the filing of your return, not the payment of any taxes owed. If you owe taxes, you’re still required to estimate and pay the amount due by the original deadline to avoid penalties and interest.
How to File for a Tax Extension
Filing for an extension is a straightforward process. You can request an extension by:
Submitting IRS Form 4868 electronically or by mail before the filing deadline.
Using tax software that supports extension filing.
Working with a tax professional like Kamish & Associates to ensure accuracy.
Pros of Filing a Tax Extension
More Time to Prepare: If you’re waiting for important financial documents or need extra time to ensure accuracy, an extension prevents the need to rush.
Avoiding Late Filing Penalties: Filing late without an extension can result in penalties of up to 5% of unpaid taxes per month. An extension helps you sidestep this issue.
Reducing the Risk of Errors: Rushing to file can lead to mistakes. An extension allows for a more thorough review of your return.
Cons to Consider
Tax Payment Deadline Still Applies: If you owe taxes and fail to pay by the April deadline, you could incur penalties and interest.
Not an Extension for IRA Contributions: If you were planning to contribute to an IRA to reduce taxable income, the deadline remains April 15.
Potential for Delayed Refunds: If you’re expecting a refund, waiting to file means you’ll also wait longer to receive your money.
Is a Tax Extension Right for You?
Filing an extension can be a smart choice for those who need additional time to gather accurate financial details, avoid errors, or work through complicated tax situations. However, if you owe money, it’s crucial to make an estimated payment by the original deadline to minimize financial consequences.
At Kamish & Associates, we assist clients in making informed decisions about tax extensions and provide expert tax planning services to ensure compliance while minimizing liability. If you have questions about filing an extension or need help preparing your return, don’t hesitate to reach out.
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