Happy summer to you! We would like to take a moment to talk about a common myth regarding tax extensions.
Extends Time to File, Not Time to Pay
Sometimes our clients are not able to file by the April 15th deadline. It happens. We get it.
It is easy for us to file an extension on your behalf which creates a new deadline of October 15th for personal returns.
But a common misunderstanding is this extends the timeline if you OWE any amount. Not true. The IRS and applicable state government wants all funds paid by April 15th or they enforce penalties and interest.
We want our clients to continue filing timely!!!
However, if complications arise at tax time and you anticipate a refund, an extension is simple. Should you owe any taxes, we must make payment with the extension or suffer additional penalties. Either way, communication with your GBE advisor along the way is key.