The Truth Behind Extending.

now-laterMost people have the following beliefs about extending the due date for their tax return:

  • The IRS puts people who extend on a list of “people to watch”.
  • Extending is a “red flag” for the IRS.
  • Extending creates a higher risk of an audit.
  • Extending is a bad and scary idea.
  • You must pay a penalty for extending.
  • It is better to file on time with inaccurate or incomplete information and then amend later.

All of these beliefs are false.

The truth is…

  • It is better to extend your tax return than to amend it later, especially if you are getting a refund.
  • Filing your tax return when you do not have all of the information needed and then amending later IS a red flag and puts your under closer scrutiny than if you were to extend.
  • There is no penalty for extending, although there is a penalty for paying late. If you think (or know) that you are going to owe, we can do a calculation for the tax due and you can make an extension payment to mitigate any interest that will occur between April 15th and when you are able to file your return.

If you would like to extend your tax return or you have any questions about extending, please give us a call at 314-993-4285 or email us at office@hkaglobal.com.

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