Tax filing, Tax refunds, tax due. Should I Extend instead of filing on April 15th on time??

Taxes due! Should I Extend instead of file on April 15th on time?

By Jeffrey Brooks, CPA, CFP, MBA for Jbrooks Wealth Advisors, PC, a Professional CPA and CFP Firm  jeff@jbrookswa.com  602-292-2009  Please consult with your professional tax CPA regarding your specific circumstances!

 

Many people think they can just extend their tax returns and everything will be  O.K. That is a dangerous assumption.

Remember if you owe tax, the extension is worthless unless you pay the tax! 

 

In addition There is a 5% per month underpayment penalty for federal tax up to 25% on the underpayment. There is also an interest on the underpayment as well.

 

Now, let us assume that you have paid all your tax and have a refund coming back. Congratulations! So, should you file on April 15th to get your money?

 

Although everyone in the world will be at post offices and online to get their tax returns done and you will have to stand in line, there is another good reason to not file on April 15th.

I recommend NOT filing on April 15th but extending by paying the extension amounts and mailing the extensions in by April 15th and then sending proof of payment to me.

 

If you do not have the money that you owe, you will need to file on April 15th to avoid the late filing penalty!!  Of course, when you cannot pay all of the tax owed on April 15th, underpayment of the tax penalty and interest starts accruing!

 

I recommend extending since we are so close to the deadline and my experience has been that a larger percentage of audits are pulled from returns filed on or around the date of the due date because the error rate skyrockets with the last minute rush!

 

We need to get the signed 8879s for Federal and AZ back by Monday A.M. or sooner.  You need to get the extensions with payment out by Monday a.m.

 

Please mail certified mail or FedEx tracking the extensions with payment.  If you cannot prove that you sent the extension, the tax return or your money, you will be assessed penalties and interest.

 

Please make sure to give us a copy of proof that you paid the federal and state extension amounts by Monday.

 

 

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com