How to Ensure Your Tax Extension is Accepted

Filing a tax extension gives you or your business an exemption when you’re unable to file your tax returns by the due date. Typically, it gives you six extra months to do your taxes. However, even after filing your tax extension, you’re still required to pay your taxes by the tax return due date.

Although the IRS accepts most tax extension applications, there are some mistakes you can make that may lead to the rejection of your tax extension. Luckily, you can avoid these mistakes by hiring a San Diego CPA.

With the help of a professional CPA, you can file your business and personal tax returns on time and fill out your tax extension applications correctly.

To ensure your tax extension is accepted, here are three things you should do.

1. File on time

In today’s world, where family, work, and other obligations can take over your life, you may forget to file your tax extension application on time. Unfortunately, this can result in its rejection, costing you thousands of dollars in penalties and fines.

Normally, the due date for your tax extension is the same as Tax Day. As mentioned earlier, it’s wise to hire a CPA to ensure you file your tax extension on time.

2. Report any information changes and check for errors

Before submitting your tax extension application, check for any errors, including your tax return information. Remember, you’ll report on Schedule C for your business taxes, while for an LLC or partnership, you’ll be reporting you taxes as part of your personal return taxes.

An experienced CPA can help you with the filling process to ensure you fill the right forms.

3. Submit the right forms

Small businesses should file Form 4868 when filing their tax extension, while corporations and partnerships should file Form 7004. Additionally, ensure the form is for the current year. For instance, this year, the revision date for Form 7004 must be for 2020.

Get help filing your tax extension

Your best bet at ensuring the IRS accepts your tax extension is by using a San Diego CPA. Contact Abbo Tax CPA today to get help filing your tax extension.