Why Doing Taxes is not the Best Part of Tax Season

For many, the endless responsibilities of daily tasks get in the way of prioritizing tax returns preparation. It is during the short tax season that stress peaks and failure to make the right moves can mean paying more than you should. How you handle your tax return during the regular filing season impacts whether you pay penalties and interest.

Far too many people miss the opportunity to avoid late tax returns filing penalties but submitting a timely extension is one way to keep more of the money you make.

What is an extension?

An extension is anappeal for additional time to submit an income tax return.This applies to individual and business income tax returns that will not be in by the tax filing due to date.

When to use an extension?

It is best to request additional time to submit your taxes when you do not have all of the expenses documents that you need to file an accurate return. For example, if you own business but cannot locate bank or credit card statements to update the accounting, use a tax returns extension to get additional time while you request copies of missing documents.

Other instances where extensions are handy are when you need to replace missing W-2s, 1099s, or receipts for tax deductible expenses.

How does an extension work?

To qualify for an extension, the request must be submitted by the original due date of your income tax return. There are different forms required for individual, corporate, partnership, REMICs and Trusts. You can find the right form at the Internal Revenue Service’s website. The extension request can be submitted electronically, by paying part or your estimated tax due, or with a request by mail.

What to expect after you get a tax extension?

When the IRS grants an income tax extension, you should continue the process of completing and sending in the income tax return. Two things occur as a result of having a request accepted.

  • First, for taxpayers who are granted the request, the IRS will waive late filing penalties that would normally apply for filing a late income tax return. However, it is important that you get the return in by the extension due date. Otherwise, penalties will apply after that time.
  • Additionally, if you will have a tax due, the interest on your balance will accrue from the date of your original filing. So if your normal tax due date is April 15th, interest begins to accrue on balance for any date after that.

If you have received a bill from the tax collector, then you have noticed that it comes with a cost. Pay up or pay more is the mantra behind the friendly reminder. Not paying what you owe is the last thing that you should do if you can afford it. What’s even better? Keep the government from sending you a bill in the first place. Here are five ways to avoid fees for filing late.

There are no shortcuts for filing taxes, but you can stay ahead of the game and on time with good record-keeping. Download a free tax organizer to help you prepare for tax season here or check with :{www.taxreturn247.com.au}.