Navigating The Tax Seas

Our Tax Preparation Services Include:

ElevatedTaxes, LLC. can also help with our extensive tax planning services.

• Individual Tax Preparation

• Business Tax Return Preparation

• Gift & Estate Tax Return Preparation

• Partnership & Corporate Tax Preparation

• Estate and Succession Planning

• Tax & Education Planning

• Out-of-State Returns

• Business Start-Ups

What is a tax extension?

Each tax season, some taxpayers will ask, “How do I get an extension for my taxes?” they might be thinking of the taxes owed and not the tax return itself.

This question calls attention to a key distinction about what a tax extension is — and what it is not. Filing an extension only gives you more time to finish the paperwork, not more time to pay. 

Your tax payment is due on the tax deadline, which typically falls on April 15 or on the next business day if it falls on a weekend or holiday.

• If you know you’ll be getting a refund, you won’t need to worry about paying when you are filing an extension for taxes. The earlier you file your return, the earlier you’ll receive your refund.

• If you think or know you’ll owe, you should estimate what you’ll owe (see below) and pay the amount due when you file Form 4868.

Is there a penalty for filing for a tax extension?

Filing a tax extension is not a bad thing. There is no penalty for filing a tax extension. However, not paying on time or enough, or failing to file altogether, may cost you.

• If you don’t pay the full amount you owe, the IRS will charge you interest on the unpaid balance until you pay the full amount.

• If you don’t pay at least 90% of the amount you owe, you might also be subject to a late payment penalty. The penalty is usually half of 1% of the amount owed for each month, up to a maximum of 25%.

• If you don’t file either your return or Form 4868 by the tax filing deadline for the given taxy year, you’ll be subject to a late filing penalty. The penalty is usually 5% of the amount you owe for each month, up to a maximum of 25%.

After you file the extension, you’ll have until October 15 to gather your documents and finish your filing.  When you complete your return, you should include the amount you’ve already paid in the payments section of your Form 1040.