Monday, January 12, 2015

Why file for an extension

Why file for an extension

1.       Filing a tax extension (Form 4868 for individuals, or Form 7004 for businesses) is easy.
2.       Tax extensions are automatic and you don't need a reason to get one ― the IRS doesn’t ask.
3.       A tax extension gives you 6 more months to file your tax return.
4.       There's no penalty to filing a tax extension.
5.       You like having options and a tax extension means you have the option to file later. You also don't   
       necessarily have to wait until October to file your return.
6.       Tax extensions are inexpensive, especially compared to the penalties and interest incurred if you fail to 
       request an extension.
7.       You're missing an important tax form.
8.       Avoid the long, annoying lines at the Post Office every tax season.
9.       You have unresolved tax issues from previous years.
10.    Most importantly filing an extension is FREE

The only thing that you need to remember is that filing an extension is only to file your tax return not to an extension to pay your taxes. You would still have to pay your taxes before April 15 in order to avoid the penalty and interest for under payment of taxes. This is very important to remember

Compliments of VXL Services, a Business Consulting Services Company that provides Tax Planning and Tax return preparation to Individuals across US. Please contact Prakash Iyer CPA

We also provide Accounting, Tax, Payroll, Consulting and Company Incorporation Services to Start ups, Small and Medium Sized companies across US. 

If you have any questions please contact us at (732) 983 – 4150 or visit us at www.vxlservices.com


Five Good Reasons to E-file Your Tax Return

Five Good Reasons to E-file Your Tax Return
Courtesy: IRS web site
If you haven’t tried IRS e-file before, now is the time. Most taxpayers – more than 80 percent – file electronically. The IRS has processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990. Fewer people file a paper tax return every year. Here are five good reasons to e-file your tax return:
1. Accurate and complete. E-file is the best way to file an accurate and complete tax return. Tax returns that are incomplete or include errors take longer to process.
2. Safe and secure. Tax preparers and software companies who e-file must meet strict guidelines and provide the best in encryption technology. You receive an acknowledgement within 48 hours that the IRS received your tax return. If the IRS does not accept your tax return, you will receive notification and can quickly correct your return and resubmit it.
3. Faster refunds. An e-filed tax return usually means a faster refund compared to a paper return. The IRS issues most refunds in less than 21 days. If you choose direct deposit, your refund goes directly into your bank account. Combining e-file with direct deposit is the fastest way to get your refund. About three out of four taxpayers who file receive a tax refund. Last year the average refund was about $2,700.
4. Payment options. If you owe tax, you can e-file early and set an automatic payment date anytime on or before the April 15 due date. You can pay by check or money order, by debit or credit card, or by transferring funds electronically from your bank account.
5. it’s easy. You can e-file on your own through IRS Free File, the free tax preparation and e-filing service available exclusively at IRS.gov. You can also use commercial tax preparation software or ask your tax preparer to e-file your return. And, if you qualify, IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly partners will e-file your return for free.
Compliments of VXL Services, a Business Consulting Services Company that provides Tax Planning and Tax return preparation to Individuals across US. Please contact Prakash Iyer CPA

We also provide Accounting, Tax, Payroll, Consulting and Company Incorporation Services to Start ups, Small and Medium Sized companies across US. If you have any questions please contact us at (732) 983 – 4150 or visit us at www.vxlservices.com for all the various Business Packages that we have to offer.