There are people who are scared silly of not filing their taxes by the April 15th (Actually April 18th in 2022) deadline and as a tax expert who spent over 20 years owning a successful tax business, I can tell you there is absolutely no reason to raise your blood pressure about April 18th!
In fact, there may be valid reasons to adopt a new point of view.
Tom Wheelwright, CEO, and founder of the CPA firm ProVision, was quoted:
“You may have a lower chance of being audited if you file an extension.”
Some benefits of filing an extension are:
- If you are rushed, an extension gives you more time to put together the most accurate tax information and document all your expenses properly to reduce your tax liability to the lowest amount legally allowed.
- For the self-employed, an extension gives you more time to make a retirement contribution that could reduce your tax liability as you are preparing for your future.
- If you are using an accountant, an extension will allow you to have him work on your return when he is not so rushed, which will seriously reduce his chance of making an error.
But, HOW DO YOU FILE AN EXTENSION?
There are many ways of which I will outline in the graphic below:
And you should always remember that no matter which way you select, YOU MUST retain proof of filing. Make sure you have some form of return receipt or tracking if email and retain confirmation if electronic.
A word of caution, remember – it is an extension to file, not an extension to pay! Be sure you have paid in what you estimate you owe to avoid underpayment penalties and interest.
If you need more tips on how to make your business more efficient and less TAX-ing, contact us at Business Untangled today!
Wishing you many happy returns!
