Tax Filing Extensions
It’s hard to know when a return will be finished. Many factors such as tax law, client questions and missing documents can slow down the process. If you were to send in all your docs at the beginning of the year the turnaround time is quite rapid. Later in the tax season, however, the turnaround time grows quickly. We work on returns on a first come, first serve basis.
IMPORTANT NOTE: Submissions that arrive later than March 15th, may need to be extended unless you have a reservation.
This is why the IRS allows for a free 6-month extension to file with a very, very low penalty on any taxes owed (there is no penalty if you receive a refund). We here at ProFiler want your return to be filed correctly, and with that, rushing to meet a deadline is not advisable.
We can file an extension for you at no charge. If we already have your taxes and we get close to the deadline we will file an extension for you automatically if it looks like we will not be able to file by the default deadline.
An extension does NOT increase your odds of an audit. We file hundreds of extensions each year and audit rates are just as low (if not lower) than returns that are not extended.
We will only file an extension if a client has sent us their documents. If you have yet to send us anything, please request an extension before April 15th. https://profilerconsulting.com/extension
Penalties
Extensions save you from paying Late Filing Penalties. It does not void the penalty for Late Payment penalties. If you owe taxes for a given year, you will be assessed a late payment penalty of 0.5% (that’s half a percent) per month that you are past April 15th. In addition, you’ll pay .25% (a quarter percent) in interest per month.
Federal Example: If you owe $2,000, the assessed late payment penalty to the federal government is $10 if filed by June 15th. In addition, you’d pay $5 for interest. For a federal total of $15.
State Example: If you owe $500 to your state, that assessed fee would be ($2.5 penalty + $1.25 interest) $3.75.