Have you heard your Accountant mention requesting a Tax Filing Extension for your business? Do you know what this means and what happens when filing for this Extension?
First off, a Tax Filing Extension is a useful tool the IRS has provided to business owners which allows you some additional time to get your bookkeeping in order for tax filing The extension period is 6 months – from April 15th to October 15th
There are various reasons why you may need to file for an Extension, one reason could be that your bookkeeper is not done reconciling your books, you are waiting for some documents such as corrected 1099s. etc.. If you need more time to get your documents in order for your CPA then filing for a Tax Filing Extension will benefit you greatly and allow you more time to get things in order.
The good news is that requesting an extension does not increase the chances of you being audited and the request is automatically granted by the IRS.
It is important to know and understand however that requesting an extension does not mean you can delay to pay any income taxes on April 15th, therefore it is important to provide some documentation to your Accountant to be able to generate an estimated tax payment. To avoid situations like these it is important to have a streamlined Accounting System in place which allows you to maintain your Bookkeeping Organized for year end.
If you are having problems organizing your books to file taxes on time and need assistance or want to save as much money possible during Tax Season, give us a call, our team will gladly assist you and guide you on how to stay up to date and never miss IRS deadlines. Our number 866-364-2228