deadline-approaching-sticky-noteThe April 15 deadline for filing your individual tax return is almost upon us. Have you considered filing an extension?

Why File An Extension?

Here are some reasons for filing an extension:
1) You need more time to gather documents and support to ensure that your tax return is accurate.

2) You intentionally want to delay your return in order to allow for the possibility that Congress or the IRS will provide more guidance on the recently passed Tax Reform Act.

3) You have had a major life-changing event, such as the death of a loved one or a divorce, and you simply need more time to file your tax return.

4) You are waiting for a key piece of information from another party, such as a partnership in which you are an investor, and they have not yet issued your reportable earnings and deductions.

How Long of an Extension Do I Get?

An individual tax return can be extended from April 15 to October 15. Remember though, the extension is only for the tax return – not for the payment due. Therefore, you must estimate and pay the amount of tax you owe to avoid a significant penalty.

If you think you need more time to file your tax return, consider filing an extension. Contact your CPA to discuss your situation so that he or she can assist you in making your decision, and in computing any required federal and state tax payments due by April 15.