With tax season upon us and April 17th just around the corner… we want to make sure we debunk any tax extension myths that may be floating around the water cooler.
Fiction: “If I file an extension, I do not need to pay the IRS until my return is filed to pay”
FACT: Even though you have extra time to file, you do not have extra time to pay.
That means that even if you file an extension, you still need to pay by April 17th. If you do not pay by this date, you may also have penalties to pay – and no one wants that! So even if you need your #GoldenGirls to file an extension for you, we still want you to be well informed that you will still need to pay the IRS.
Fiction: “If I file an extension, I will be more prone to get audited”
FACT: Your chances of audit are not based on timing.
What really determines audits is the rating scale. When the score shows potential red flags, an audit may be necessary.
Fiction: “Filing an extension is expensive”
FACT: An amended return will not be necessary.
The return may even more accurate because it reflects up-to-date information. You may actually save some money by allowing some time to see if any deductions may be filed.
