Time of an Extension?

published March, 2015

Speaking of tax deadlines, the corporate tax return deadline is March 15th, which is a Sunday, so Monday March 16th

I charge an extension fee of $100.

IF I DON’T RECEIVE YOUR EXTENSION FEE, I WON’T PUT YOU ON EXTENSION.

Why so harsh? What’s the big deal about filing an extension? It’s just a one page form, right? WRONG! Yes, it’s one page, but to properly extend your return, it is required to estimate the amount of tax due, which basically means doing the tax return before doing the real tax return. There is no extension for payment of the tax; if you pay late there will be penalties and interest. There is a separate penalty for filing late, and throwing together a last-second extension or putting “$0 due” (without at least believing it is true) is a good way to have IRS invalidate the extension, and that can subject you to some very nasty penalties for filing late. That’s bad for you. Ultimately, I’m trying to protect you from paying substantially more in penalties and interest for not filing on time.

The IRS offers a six-month extension, but it is best if you still file as soon as possible within those six months. If you wait until the last minute, your returns may not get finished on time. If your return is not filed by the extension deadline, the government computes late filing penalties from the original due date and disregards the extension.

Don’t have the extension fee together at extension time? In addition to cash, check and PayPal, I also accept MasterCard and Visa.

You may also put yourself on extension. Be warned that some states do not accept the federal extension as having simultaneously extended the state return, and also that the “extension” is an extension to file, not an extension to pay. I file extensions electronically, so I get an electronic confirmation. If you file one for yourself, I suggest certified mail with return receipt service for confirmation. No, I cannot “just answer a few quick questions” about your extension if you haven’t paid me to prepare it; it’s not fair to the other people for whom this policy applies.

Note that the extension payment policy only applies if you miss the deadlines. If you have questions about this policy, please call me to discuss them.

Thanks for using our services for the 2014 tax year.