FREQUENTLY ASKED QUESTIONS about Extensions
What does an extension accomplish? An extension is for an extension of time to file only, not to pay the taxes. Taxes still must be mailed in by the due date. If we estimate that you owe taxes, we will contact you and advise you of how much is due. You will then bring the check to our office for processing and mailing. The extension moves the filing deadline to October 15th.
Will filing an extension increase my chances of being audited? Absolutely not! This belief is a tax myth perpetuated by folks who are petrified of the IRS. Many taxpayers file extensions every year and are never audited.
If an extension is filed, just when will my taxes be completed? Most all returns extended are completed in May.
Is my signature required on the extension form? No. There is no signature line on the extension form. In addition, most all extensions are now filed electronically by our firm.
Will you send my extension to the IRS for me? Yes. We file the extensions via the IRS’s E-filing System and maintain proof that it was filed timely.
How do you estimate the amount of tax due with the extension? We use current data available to us that you have provided to calculate a rough estimate of the tax due. This may include just your prior tax return. Our estimate will be adjusted to the actual amount due when we file the taxes and at that point you will receive a refund or minor amount due.
Do I have to pay the amount you estimated? No. You are free to adjust the estimate to what you think it should be or not pay it at all. Be aware that if you end up owing taxes when you do file your actual tax return, the IRS will assess taxes and interest.
Will you show me how you arrived at the estimate? Since it is just an estimate, we can provide you, over the phone or email, the basis for our estimate. However, since it is just a rough estimate, going over it in detail during an appointment is futile.