OCTOBER 15 IS ON ITS WAY! STAY ON TOP OF YOUR EXTENDED TAX FILING
Ernie Neve, CPA
August 21, 2019
As you know the extension deadline is October 16 and it’s coming up faster than you might expect. As it approaches, we should have a discussion about the reasons to extend filing and whether those reasons indicate something larger needs to be worked on.
Many people are in the habit to automatically extend their taxes. If that’s the case, it’s a habit we should break next year. Solid tax planning and a close working relationship with your tax advisor will ensure your taxes are filed on time every year. Our firm is more than happy to take over these aspects of your workload, allowing you to focus on the things that need your attention, instead of the information required to prepare your taxes. Filing your taxes by the original deadline is of great benefit to you. It allows us to focus on proactive tax planning for earlier in the current year. This is how we help you keep more of what you earn by paying less in taxes.
Similarly, if you didn't get us your tax information before March 25, odds were 50-50 that you were going to be put on extension, because the high volume of tax work we have between the end of march and Tax Day in April. Again, tax planning is key here. If we get your tax information as soon as you do, we’ll be in good shape to file your taxes without going on extension.
Either way, if you’re on extension, it’s time to get off the treadmill and make real progress on your 2018 taxes. In the old days, the automatic extension deadline was August 15, and if you didn’t make that deadline then the IRS had to approve extending again to later in the year. They changed it in recent years, figuring that if you extended once, you’d probably extend again. They figured it was better to have one deadline, October 16. Although that gives us more time than August 15, the current extension deadline is a drop-dead date. If you haven’t filed by then, you are late, and that means trouble.
You can—and should—file much sooner than October 16. Similar to getting lots of work between March 25 and Tax Day in April, we will also get lots of work around this time. If you’re on extension, send us everything we need to finish your 2018 tax returns now. If you don’t know what tax information, we need from you, contact us today to find out. We look forward to moving ahead productively on all of your tax filing and tax preparing requirements.