I filed a tax extension – what now?

by | May 12, 2023 | Business Taxes

tax extension

Three tips on what to do after filing a tax extension

If you weren’t done with your tax return in time to file by April 18, filing for a tax extension was a smart move.

When you complete Form 4868, Application for Automatic Extension of Time to File, you get an extra six months to file your tax return. That probably sounded terrific when you were under the gun trying to get everything done, but now that April 18th has come and gone, it’s important not to let those six months go by without finalizing everything related to your tax return. 

Oct. 16, 2023 is your new deadline, and it will be here before you know it.

Three expert tips to keep your tax return on track after filing an extension

  • Do as much as you can on your return. If you haven’t already completed your return, do as much as you can now. If you’re waiting for information or documentation from someone else, estimate that amount and keep going, but be sure to mark or highlight where you’ve made the estimate so that you will remember to come back and fill in the proper amount later. 
  • Keep good notes and stay organized. While working on your return, keep notes on any outstanding items or questions you have. Create a checklist, and as you move through the return and complete each section, cross that information off of your list. If you make any calculations or use supplemental information (square footage of properties, days spent at a vacation home, etc.), keep notes on that as well. This will enable you to answer quickly if the IRS asks any questions about your return. Keeping your documents organized in one place will help save time later.
  • Finish up quickly – don’t wait until October 16. It may seem tempting to procrastinate, but it’s always better to go ahead and get that return finished and sent to the IRS. This is extra important if you think you owe the IRS money. Filing for an extension doesn’t give you an extension on payments, so the IRS will start charging you interest and penalties if you don’t pay the estimated amount due.

Let the experts help you file your tax return

If you’re feeling overwhelmed by the idea of getting your tax return done after filing for an extension, don’t fret. The experts at Prime Corporate Services are here to help. Schedule a free consultation today and take that weight off your shoulders!