The tax deadline is almost here and with the final tax deadline (April 17th) comes tax procrastination and common misconceptions about filing extensions. Although taxpayers still have two extra days to file this year, some of them will still wait until 11:59 AM on Tuesday and throw in the towel, file an extension, and miss out on possible tax refunds.
The reasons taxpayers file extensions vary, but one of the common misconceptions regarding extensions is that they are extensions to pay tax liability. If you are planning to file an extension because you owe money (or think you do), think again. Filing an extension won’t help you forgo those extra penalties and interest, because an extension is an extension of time to file and not an extension to pay. If you file an extension, you still need to pay (within 90 percent accuracy) by April 17 to avoid late penalties.
File by the Deadline
Even if you owe money and are unable to pay your liability, file your taxes on time since an extension will not rescue you from any additional penalties and interest. If possible pay as much as you can with your tax return and then you can apply online for an online payment agreement or send an Installment Agreement Request, with your tax return for the balance.
QBE makes it easy for you to quickly file your tax return and if you still have questions you can get them answered from our experienced tax experts for free so you can accurately finish your tax return by the April 17th deadline. And who knows? Once you take advantage of all those tax deductions and credits, you may be getting a tax refund instead of owing money.
Still Need More Time?
If you just have to file an extension, you will get an extra 6 months to file your taxes, but not pay your tax liability. Keep in mind you still have to estimate your tax liability to enter on the form and include any taxes you already paid.
So what are you waiting for? You don’t want to delay filing your taxes since an extension won’t extend your time to pay any tax liability and you may even get a tax refund. Plus you can quickly and easily file your taxes before the tax deadline so you can possibly enjoy the extra days given to file taxes doing something else.