Extension of Time Tax Myths Busted: Stop Procrastinating

The final day to file your income tax return for 2015 is April 18, 2016. Emancipation Day falls on the 15^th of April this year, which means tax day was moved back to the following business day. However, despite the fact that people are given a few additional days to file their income tax returns this year, many are still procrastinating and have yet to file. If you’re a last minute filer who will have your income taxes filed before the day they are due, this does not pertain to you. However, if you are someone who will not have your tax information together enough to file your return by the deadline, perhaps you need to read on.

It’s perfectly acceptable to file an extension of time with the government to allow yourself an additional six months to file. Some people live with the misconception that not filing your return and instead filing for an extension also provides you with an additional six months to pay; this is not the truth. If you owe taxes, you need to pay at least the same amount you paid in last year so that you can avoid tax penalties. This amount needs to be paid along with your extension of time prior to the tax day deadline if you want to avoid penalties. If you are owed a refund and you choose not to file your taxes on time or you choose not to file an extension, you will not be charged any penalties.

Additionally, there is another misconception that you do not have to file an extension if you pay in. You do; even if you send money before the deadline, you still have to file an extension if you pay taxes. What we are trying to say is take the extra five minutes to file an extension of time and be sure you’re doing the right thing.

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