Tax Deadlines Approaching? Here’s Why Filing an Extension Might Make Sense
As the April 15 tax filing deadline approaches, some individuals and businesses may benefit from pressing pause. Filing an extension can buy you extra time to organize documents, explore deductions, or resolve complex tax issues without rushing the process.
But is it the right move for you? Here are a few key pros and cons:
Pros:
- More time, less pressure. An extension gives you until October 15 to file, which can be ideal if you’re still waiting on tax documents or need to sort through complicated finances.
- Improved accuracy. Rushed filings can lead to missed deductions or errors. Extra time can help maximize your refund or minimize what you owe.
- Penalty protection. While an extension doesn’t delay your tax payment, it can help you avoid the late filing penalty if you submit the final return by the extended deadline.
Cons:
- You still have to pay. Extensions give you more time to file, but not more time to pay. Any taxes owed are still due by April 15 to avoid interest and penalties.
- Potential delays in refunds. Filing later means your refund, if you’re expecting one, may also be delayed.
- False sense of security. It’s easy to think an extension means you’re off the hook… but it still requires action and planning.
An extension can be a smart strategic move, not a red flag. If you think it might be right for you, talk with your ShindelRock team soon to weigh your options and file before the deadline.