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

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