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Tax time is here and you’re ready to get your taxes filed. Or are you?
You may find that you’re missing papers such as 1099s for investments or an inheritance that you received and they’re not showing up in time for the annual tax filing deadline. Don’t panic! You’re not going to get into trouble with the IRS as long as you take advantage of the six-month extension. The IRS makes it easy to get an automatic six-month extension to get your papers in. Following are reasons why you should file an extension and how to get it done.
Signs You Should File for an Extension
You need all of the appropriate paperwork to file your taxes every year or you won’t be able to create an accurate picture of your finances. The IRS requires you to supply all of your financial documentation when you submit your return as well. While you don’t have to provide paper copies by and large if you’re filing electronically, you do need to provide information found on the forms that report your income. These include any 1099s you receive. In the event you don’t have all of your forms at the time your taxes are due, you can’t create an accurate picture of your financial life in Cabarrus County NC.
This is a sign you need to file an extension.
Another issue is if you’re going to be out of town during tax time. You may be working with a CPA to get your returns finished, but there are problems that can come up that require your personal attention. If you know you’re going to be on vacation or away for work, you need to file an extension.
And sometimes life simply gets in the way of good intentions. Spring is a busy time for many industries as they gear up for the upcoming warm months and there’s simply no time to get taxes ready. Maybe you’re busy with work and the demands of daily life which leaves you with no spare time for you to get your financial information together. When life gets too hectic, you need to find yourself some time. File an extension to get some breathing room and make it a point to get your papers together long before the extension is up. You may want to work with a CPA in Concord NC who understands what life is like in the area but can help you stay on track with filing an extension and what comes after.
When an Extension Won’t Help
If you owe taxes, you won’t be able to put off paying them with an extension. You have to pay them now and finish off the return later. If you’re uncertain of how much you’re going to owe, work with a CPA in Concord NC to get help. A CPA can help you make the decisions that are appropriate for your particular problems and keep you out of trouble with the IRS.
What you should do, no matter how much you owe, is file a tax return or extension even if you don’t think it’s the right thing to do. The IRS wants you to file a return and won’t penalize you if you need an extension. It’s far worse if you don’t file anything at all and the IRS catches up with you.
How to File an Extension
If you’re an individual looking to file an extension, you need to use Form 4868 known as the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The IRS supplies the link to the PDF on its website and allows taxpayers to file online for free using Free File. If you don’t want to e-file, you can print the form, fill it out, and mail it into the address provided on the instructions that come with the form.
It’s normal to feel uncertain about filing an extension and doing it correctly. If you feel you need help, contact your Cabarrus County NC CPA to get assistance. Giving the work to a professional who can take care of it for you can take a load off your mind.[/vc_column_text][/vc_column][/vc_row]