It’s tax season! Are you one of those types of people who obsess until your tax return is completed? Or, are you the type who puts everything off with an “out of sight, out of mind” attitude? Or, maybe you’re an accountant’s dream client and fall right in between.
Here are four reasons why you might want to consider filing for an extension on your tax return.
Your individual and partnership returns are due on 4/15 and can be extended to 10/15. Your corporate returns are due 2 ½ months after the year and can also be extended for 6 months. If the corporation has a year-end of 12/31, that means it will be due 3/15 and can be extended to 9/15.
Here are four reasons why you might want to make that extension:
(1) Funding pension plans. You have until the filing date of the return to fund most pension plans. That can buy you a lot of time after the year end.
(2) If there are tax law changes for the year, you might find that you want to change how you handle something on the previous year tax return.
(3) Your CPA is fresher. Face it, CPAs typically work a lot of hours in tax season. Do you really want a burned out CPA preparing your tax return?
(4) Although the IRS doesn’t admit it, there is some evidence that the later you file your return, the lower your chance of IRS audit.