April has come and gone, but for some of us, the dread of filing our annual tax return still lingers. If you recognized that you needed more time to finish and you filed an extension request, you did the right thing. But now that you’ve filed, what comes next?
At Hacker Accounting, we frequently help clients who have filed an extension request and need guidance in taking the next step toward finishing their taxes. If this sounds like you, we’re here to help.
1. Check Your Status
Even though you filed an extension request, there’s still a chance that it could be rejected. If you used an electronic filing service, you should know within 48 hours if your extension request was accepted. If you filed by mail, you’ll need to call the IRS to check the status of your extension request. These are usually accepted, but may be rejected for minor things like out-of-date information, misspellings, or other small errors.
2. Pay Due Taxes
An extension grants you a longer deadline to file your return … NOT a longer deadline to pay taxes that you owe. Any delay in payment results in a 0.5% interest of the due amount per month, as well as penalties and fines. If you are not sure how much tax you owe, an accountant can help you figure this out.
3. Finish Filing Your Return
You may have filed an extension for any number of reasons — perhaps you were missing some necessary documents needed to file your return on time, or maybe life just got in the way and you couldn’t meet the deadline on time. But with an extension filed, it’s time to jump back in and finish strong. Extensions only last for 6 months, and you don’t want to be up against a deadline again in October. Finish filing now while you have the time, and you’ll save yourself a lot of stress later.
Bonus: What Receipts Should I Save?
Have you filed an extension and need help finishing your tax return? Hacker Accounting can help. Our team of certified accountants and bookkeepers can get you back on track and help you avoid paying interest and penalties. Give us a call at 602-375-5251 to get started.