Top 3 reasons to file on-time after filing an extension

I understand the value of a deadline and, in fact, I love the pressure that comes with a deadline.  Seriously, I'm a tax professional.  However, October 17th is one deadline that you don't want to miss and if you do-well, it's gonna cost ya and don't say I didn't warn you.

First let's get this straight!  You already missed the April deadline to file your 2010 taxes and you requested an extension and now it is time to make sure those are filed on time.

Here are three reasons not to miss this deadline:

1.      This article should be titled, "The one reason not to miss this deadline" and this is so you don't incur penalties!  Most people file an extension because they owe the government money and if you miss this deadline then you are going to owe them more money!  That is counterproductive.  You may have to pay a late penalty of 5% for each month that you are late.

2.      You may miss tax deductions and creditsEach year the lawmakers set out to make new laws and quite often they have to do with the taxes that you and I pay.  If you are late filing you may become ineligible for certain tax deductions and credits.

3.      Do you have a refund coming? Not everyone files an extension because they owe the government money.  Some file because they are overseas, serving in the military, or they simply missed didn't get their act together.  If you have a refund coming and you miss this deadline then I'm assuming you are also carrying credit card debt or are missing other bills and their deadlines.  Thus, your refund could come in hand to clean up your personal finances.

If you are having difficulty getting your documents together or have questions regarding your tax extensions, please don't hesitate to contact us with any questions.  We are here to help and know that this time can be stressful.  Let Liberty Tax be your advocate and partner and let's get down to business!

 

David Rocci

 

Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

 

Posted To: Tax Rants by David Rocci By: David Rocci On: Sunday, October 09, 2011
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