An extension is a form filed with the IRS to request additional time to file your federal tax return. The extension period is six months, which extends the due date for submitting your personal tax returns, and C Corporation returns (if applicable), from April 15 to Oct. 15. If you are a S Corporation or Partnership, an extension extends the government filing deadline to Sept. 15!
Filing an extension grants you additional time to submit your return, but you still need to estimate whether you will owe any taxes and pay that estimated balance by April 15. Your Tax Advisor can provide you more information regarding estimations.
Filing an extension come with a number of benefits:
1. Filing an extension provides you with additional time to file returns without penalty (assuming you are caught up with your estimates) when you are waiting for missing information or tax documents (such as 1099s).
2. It provides you with additional time to update your books and gather your expenses. It is not uncommon for a small business owner to forget declaring a business expense; additional time allows you to make sure you declare all your business expenses, and thereby potentially maximize your deductions.
3. You may qualify for additional retirement planning opportunities or additional time to fund certain types of retirement plans (e.g. SEP IRA).
Should you like to know more, please feel free to reach out to us.
The 1-800Accountant Team