This year’s April deadline gives all taxpayers a set date to complete their tax return, but even with that extra time, not everyone’s going to be able to file. There are many reasons why individuals and businesses need the additional 6 months that filing a tax extension provides. Many will get important documents late, incorrect forms need to be reissued, tax preparers are too busy, bookkeeping and financials are incomplete, or life throws a curve ball. No matter the circumstances a tax extension can relieve the stress at tax time.
Anyone can file an extension.
The IRS allows any taxpayer to get a six-month extension. All you must do is file the tax extension on time (by the original IRS deadline in April).
Failure to file an extension will cost big time if you owe.
The penalty for failing to file an extension If you owe money is 5 percent of your tax bill per month up to 25 percent of the balance. In addition, a business can be assessed this fee multiplied by the number of owners/shareholders.