What is a tax extension and why would you need one?
Every year, your federal individual tax returns are due on April 15th or the first business day thereafter. However, The IRS will grant an automatic six month extension to individuals that completes form 4868 (reference image below). There are different forms and submission deadline for business extensions, these forms depend on the type of business you own. The good news is, if needed, we will file your required business and personal extensions on your behalf! No need to scramble and stress to get everything prepared, filing an extension will give you plenty of additional time to gather and submit all necessary tax documents to ensure that you file a complete and accurate return.
What do I have to do?
Absolutely nothing! Our office took the guesswork out of tax extensions by taking care of the paperwork and filing for you.
How much does it cost?
Here at Professional Tax & Accounting, we do not charge you to file your extension. However, it is important to note that any tax you owe will still be due by the original April 15th deadline. We will review our prior year records and determine if a payment should be made with your extension. We will contact you if you have a high tax liability from a business or if you made a payment with your tax return in the prior year. To avoid penalties, we suggest you pay 100% of prior year's tax liability. If you have made estimated payments for the prior year, you may not need to pay with an extension. Any unpaid balance after the April 15th deadline will accrue a penalty of 0.5% per month (or part of a month)
What if I receive a notice for failure to file/late filing penalty notice?
If you receive a notice from the IRS, DO NOT PAY without contacting our office first. The IRS often sends out these notices before they process the extension applications, so give us a call and send us the notice. We will respond to the notice on your behalf and send you a copy of our correspondence with the IRS.