Extension Considerations

One of the most overlooked privileges in our tax system is the “statutory” right to file for an automatic extension to April 15^th deadline to August 15^th.

Please Note:

  1.   An extension to file does NOT extend the payment due date on any   
          balance owed – balance owed is due by the 15th of April.

2. The extension must be prepared based on “product” facts or estimates.

3. No description needs to be provided or explained, it is simply your privilege.

4. Extensions do not extend the time to pay your IRA contributions – contributions must be paid by April 15^th. However SEP and profit sharing dates are extended.

5. If you still need additional time before the first extension expires on August 15^th you may request second extension, but you must provide the reasons, which caused you to request the second extension (could be extended up to October 15^th).

Simply stated, extensions are your first line of defense against the so-called “grey areas.”