It’s everyone’s favorite day of the year...TAX DAY!!!
Ehh, not so much….
For all of you stressing over this day, Marketwatch has some great advice. File an extension!! In an article posted by the news source, there are 7 excellent reasons why many people should consider an extension. And contrary to popular belief, filling an extension doesn't automatically raise red flags at the IRS. So if you need the time, or have any one of the following situations present, do yourself a favor and file an extension and give yourself until October 15, 2016 to file.
7 Excellent Reasons to File a Tax Extension:
1.) You have a balance due and need more time to save up money to cover it. Give yourself that extra 6 months.
2.) Made charitable donations over $250 to one or more charities and don’t have the proper receipts (which must include the name of the charity, address, taxpayer ID number, and a statement that you did not receive any benefits or items of value for your donation) to submit with your taxes? The IRS is very strict on submitting the required documentation so an extension would give you an extra 6 months to get everything in order.
3.) Have you recently moved homes? Or are you planning to move within the next few months? If yes, it benefits you to submit an extension because the IRS may need to follow up with you on your taxes and they send all correspondence to the address you have on file.
4.) If you are waiting for K-1 forms from partnership entities, S-Corps, estates, or trusts you should file an extension.
5.) Sometimes rushing through your personal or business bookkeeping can cause sloppy or incorrect taxes. Don’t rush and do it right. File an extension to give you that extra time.
6.) Have a large balance this year? Making contributions to your 2015 retirement plan can help reduce that balance. File an extension if you would like to benefit from this. You have until October 15th to open or add to your retirement fund.
7.) And finally…. You still have questions regarding your taxes that you have not had answered. Give yourself some time to get everything settled.
Best of luck this tax season!
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