The mystery of tax extensions

It is now heading to the middle of July of 2014, and summer is the high with nice warm (even hot weather) kids are out of school, time for holidays and relaxation. But you may have forgotten, or maybe not forgotten but postponed, the filing of your 2013 tax returns. Hopefully, an extension was filed back on or by April 15, 2014 (March 15, 2014 for most business tax returns). If not you are already facing a failure-to-file penalty with the Internal Revenue Service, if you are going to have a balance due of your tax 2013 tax returns. This penalty is imposed if you did not file a tax return by its due date. A tax return is due annually on or by April 15 (or by the 15th day of the fourth month after the close of your fiscal year) for individuals, and for most business (e.g. corporations), a tax return is due on or by March 15 (or by the 15th day of the third month after the close of the business’s fiscal year). Once an extension is filed, you have just postponed the filing date for 6 months, which is October 15 (or by the 15th day of the tenth month after the close of your fiscal year) for individuals, and for businesses the extension due date is September 15 (or by the 15th day of the ninth month after the close of the business’s fiscal year). So, being it is mid-July, we do have a few months left before these extension due dates. So, gather and organize your materials (especially while on holiday) so you can have your tax returns filed in a timely manner. And of course like many thing we can help you with this and much more. For a slightly longer list It is now heading to the middle of July of 2014, and summer is the high with nice warm (even hot weather) kids are out of school, time for holidays and relaxation. But you may have forgotten, or maybe not forgotten but postponed, the filing of your 2013 tax returns. Hopefully, an extension was filed back on or by April 15, 2014 (March 15, 2014 for most business tax returns). If not you are already facing a failure-to-file penalty with the Internal Revenue Service, if you are going to have a balance due of your tax 2013 tax returns. This penalty is imposed if you did not file a tax return by its due date. A tax return is due annually on or by April 15 (or by the 15th day of the fourth month after the close of your fiscal year) for individuals, and for most business (e.g. corporations), a tax return is due on or by March 15 (or by the 15th day of the third month after the close of the business’s fiscal year). Once an extension is filed, you have just postponed the filing date for 6 months, which is October 15 (or by the 15th day of the tenth month after the close of your fiscal year) for individuals, and for businesses the extension due date is September 15 (or by the 15th day of the ninth month after the close of the business’s fiscal year). So, being it is mid-July, we do have a few months left before these extension due dates. So, gather and organize your materials (especially while on holiday) so you can have your tax returns filed in a timely manner. And of course like many thing we can help you with this and much more. For a slightly longer list http://www.kayatax.com/irvine-tax-services

Another element of extension, which most people forget is that, an extension filing, again simply postpones the filing deadline by 6 months, as discussed before. If you expect to have a balance due on your tax return, then it is advisable that you should have made a reasonably estimated extension payment to cover what your expected balance due is going to be, because once you file your tax return, while being extended, you will face a failure-to-pay-penalty by the Internal Revenue Service, as well as you have to pay interest, which is compounded on a daily basis. This failure-to-pay-penalty and interest is imposed after the April 15 (March 15 for businesses) due dates, even with an extension filed. Thusly, and extension does NOT extended the due date to pay any balance dues, which is once again April 15 (March 15 for businesses).

So if you are not organized yet to meet your extended deadline, and need help, you can contact us anytime http://www.kayatax.com/contact-us , after all once summer ends, the extended deadlines would be just around the corner!!!