Instructions for Personal Extensions

Here is what you need to know about your extension: 

The extension extends the time to file your return, but NOT THE TIME to pay your taxes. We will file  an electronic extension on your behalf, but the interest still accrues on any unpaid taxes as of April 15th. 

You can make an online payment at https://www.irs.gov/payments 

Not sure how much to you should pay? 

Let’s review your options:  

• If you normally get a refund and nothing has changed with your income, deductions or tax  payments, you are probably fine. When your taxes are ready to file, you will receive your refund  just like you have in prior years.  
• If you normally owe taxes and nothing has changed with your income, deductions or tax  payments, you need to make a payment before April 15th similar to the amount that you owed last  year (maybe round the payment up just to be safe). The best way to make tax payments now is to  submit the payment electronically by going to https://www.irs.gov/payments Checks mailed to the  IRS have been getting lost lately so paying online gives you a receipt that proves you made the  payment on time.  
• If your income, deductions or tax payments are significantly different from last years, then we  recommend sending in the largest payment that you can comfortably afford. Remember, this  payment is just an estimate so if you overpay your taxes, you will be refunded the difference.  However, if you underpay, you will be charged interest and penalties for the underpaid amount.  So, you are better to send in more than less. Think of it as penalty insurance.

   

Regardless of the option you choose, we need a copy of any payments made so that we can properly  credit your account on the tax return. 

A couple of additional points to consider:  

• If you normally make estimated quarterly payments, your first quarter estimate for next year taxes is also due April 15th. You will need to make both your estimated tax payment and first  quarter estimate at the same time. Your first quarter estimate for taxes should be the same as your  1st quarter estimate payment from last year. For added security, we recommend combining both  payments together and applying both to your tax return. That way if you are short on your  payments, the Q1 payment will reduce penalties assessed. Any amount of the Q1 payment not  needed for this years taxes can be applied to next year (which then effectively becomes your Q1  estimated payment for next year)  
• If you know that you owe taxes but don’t have the money to pay those taxes, send in a payment  for whatever you can. Even if it only a few hundred bucks. Then while you are waiting for your  taxes to be finalized, continue to make payments to the IRS each month to reduce the penalties  that you will be charged. Just make sure that you give us a record of those payments so that we  can properly credit them to your tax return.  
• If you plan to make a contribution to an IRA (and are eligible), DO IT NOW! After April 15th,  you can no longer make a contribution for this year. 
• We continue to work on tax returns after tax season in the order that we receive documents from  clients. We anticipate that our staff will take the two weeks off after the deadline to recharge  after a long tax season. That means we probably won’t start working on tax returns again until  the beginning of May. We will be extending over 300 returns this year so depending on when you  drop off your information, it could be several weeks after that before we can start your return. 
  
  

If you have any questions about your extension, please feel free to contact our office by calling  (702) 368-1120