To Extend or Not to Extend, That Is the Question?

Have you looked at your calendar yet today? Have you noticed that April 15 has already come and gone? Of course, it’s pretty hard to miss tax day, but some people actually do. So should you file an extension now if you didn’t make it on time? Some people believe filing an extension is a good way to get the IRS’s attention and thus increase the likelihood of an audit. Others think the exact opposite is true. So what should you do if you’re late: extend or not? It depends.

In some cases, it might just be best to file your taxes now and pay a small late penalty. That can put the problem to rest and as long as you don’t get selected for an audit, then the case is closed. However, in other cases, filing an extension is a better option.

For example, if you are already being audited, then file an extension. This will prevent the IRS from including the current return in the audit. In addition, the audit could affect your current return; so waiting to see how it plays out could be wiser. Another good reason file for an extension is if you don’t have everything you need to file an accurate return. It’s better to get the return completely right and get it in late than to send it in promptly with incorrect information.

Turning in an incorrect return could lead to having to file and amended return and those are more likely to be audited. No matter what you choose to do, you should also be aware that filing for an extension does not mean you have more time to pay off your tax bill if you are going to end up owing money. You are still required to pay the amount you think you will owe, on time. If you overpay, then you will get a refund when you do finally file your return. But keep in mind that you might still pay a late penalty if you file for an extension after the deadline and you owe taxes.

 

Posted in
Omni Channel Entrepreneurship | Alexandra Mysoor

Omni Channel Entrepreneurship | Alexandra Mysoor

Episode Transcript of: Omni Channel Entrepreneurship | Alexandra Mysoor Alexandra Mysoor What omni channel really means is taking a holistic approach to your brand. It’s not being channel agnostic. It’s not just being an ecommerce distribution platform or bricks and mortar or even in some cases catalog Believe it or not, it’s still a very…

Stanford University-School Of Engineering | Richard Dasher

Stanford University-School Of Engineering | Richard Dasher

Stanford University-School Of Engineering | Richard Dasher   Alan Welcome back. I’m here today with Richard Dasher. He’s a PhD from Stanford University where he serves the roles of director of the US Asia Technology Management Center. And he’s also the executive director at the Center for Integrated Systems and consulting. Welcome to the show.…

Situational Leadership | Tim Kearin

Situational Leadership | Tim Kearin

Episode Transcript of: Situational Leadership | Tim Kearin Alan In the book, you turn you talk about learning to apply situational leadership. Now, my understanding is that as you and can begin working together with all the leadership books that he wrote, you didn’t really realize what this was about. Can you expand on that?…

Ken Epstein; Doing Business In China | Kenneth Epstein

Doing Business In China | Kenneth Epstein

  Episode transcript of: Doing Business In China | Kenneth Epstein Alan Olsen: Entrepreneurs that are wanting to do business in China, if they are bringing intellectual property, I’ve heard mixed stories here, what is your take on bringing your intellectual property into China? Kenneth Epstein: Well, its a challenge but it can be done, and…