With only a few weeks to go until the April 15 tax deadline, procrastinators might be starting to feel a little anxious about their taxes. If this sounds like you, then filing for an extension might be just what you need.

Each year nearly eight million Americans file for an extension on their taxes. This represents nearly eight percent of all taxpayers in the United States. It’s important to remember that just because you file a six-month extension it doesn’t mean you have an extension on paying any taxes that you owe. You’ll need to pay the estimated amount of taxes you owe no later than April 15 to avoid penalties.

Filing a Tax Extension

 

What happens after the extension is filed?

Once you have filed your extension you will have until October 15, 2020 to file your actual return. At ATBS, we begin working on tax returns in the order that we receive completed tax organizers from clients. We are dedicated to completing your taxes as quickly and accurately as possible.

For those who want to file their own tax extension, download form 4868 from the IRS website. Simply fill it out, send it in, and make sure you have paid the estimated amount that you owe for the first quarter of 2020.

 

Are my chances of a tax audit higher?

There are a lot of rumors out there about what can trigger a tax audit. Some people you talk to claim that filing an extension is one of those triggers. That is not the case. The reality is that the IRS is pretty tight-lipped about what they are looking for when they decide to audit an individual.

On the other end of the spectrum, some people believe that if you file an extension you have a lower chance of being audited by the IRS. By the time the October 15 deadline approaches they have already reached their yearly quota for audits. Is that a true statement? No one is really sure since it’s purely speculation.

What we do know is that each year 1 in 100 taxpayers will be audited by the IRS. The odds go down to 1 in 250 if you earn less than $200,000.

Just remember that as we get closer to the tax deadline, ATBS is here to help you through the process. If you have any questions make sure you to give us a call at 888-640-4829.

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