Sometimes the Best Practice is Filing an Extension

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IRS says it is OK to file an extension

Basics about extending your tax return bad and good

This year, federal income tax returns are due by April 15 for most people. However, if you cannot file your return by the deadline for whatever reason, it’s fairly easy to get the due date extended to October 15. All you have to do is request a tax extension by filing a simple IRS form or paying your taxes electronically. Make sure you act before the original tax deadline, though.

Filing an extension is normal and does not increase your audit risk. It gives you extra time to file, not to pay what you owe. The IRS audits based on red flags, like missing income, unusual deductions, or math errors, not because you requested a few extra months.

When considering an extension, weigh the pros and cons based on your personal situation and preferences. If you can’t file your return by the April 15 deadline, then by all means get a tax extension.

 Extending My Tax Return Does It Really Matter?

As tax season approaches, many people face the same question: Should I file my tax return now, or request an extension? For many households especially those with investments, businesses, or more complex finances, filing a tax extension isn’t a red flag. In fact, it can be a thoughtful and responsible choice.

What really is a “tax extension”? A tax extension simply gives you more time to file your return, typically until October 15. It does not give you more time to pay taxes owed. Any taxes due are still expected by the April deadline.

Extensions are common among individuals with:

  • Investment accounts that issue K-1s or corrected 1099s
  • Business ownership, real estate, or trust income
  • Complex tax situations that require additional review
  • Major life events such as selling a business, relocating, or receiving an inheritance.

In these cases, filing early can sometimes mean filing incorrectly. An extension allows time for all documents to arrive and for returns to be prepared accurately.

It’s important to clear up a few common misconceptions:

  • An extension does not reduce the amount of tax you owe
  • It does not delay interest or penalties on unpaid taxes
  • It does not increase your chances of an audit

The IRS views extensions as routine and widely used particularly by high-income and high-complexity taxpayers.

Filing a tax extension isn’t about procrastination, it’s about getting it right. For individuals with complex finances, an extension can be a prudent tool when paired with proper tax planning and timely payments. If you’re unsure whether an extension makes sense for your situation, a coordinated conversation between your tax professional and financial advisor can help ensure everything aligns smoothly.