With only a few days to go until the May 17 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 May 17 to avoid penalties.
It is important to get your tax return in by the IRS’ May 17th deadline. But what happens when meeting that deadline is just not possible? Filing an extension is a great option to avoid penalties and late fees. Even if you missed ATBS’ February 26th deadline for submitting your tax organizer to us, it is still possible to file an extension with the IRS.
Here are some things you should know about working with ATBS to file an extension:
Extensions for individual returns MUST be filed by May 17th.
If your completed tax organizer gets to us after the 26th of February, it is likely that ATBS will file an extension on your behalf to avoid the penalties and fees associated with late returns.
If you are currently utilizing our monthly business services and are in need of an extension, we will automatically file your extension on May 17th, whether you request one or not, at no additional charge to you.
Not using our monthly services? Just call and talk to us about filing an extension. It only takes about five minutes and costs $50. While the $50 is not refundable, we will apply it to your tax preparation fees.
When will your tax return be done? While the IRS extension period lasts until October 15, ATBS is dedicated to completing your return as quickly as possible. We complete each return in the order it was received.
What if you want your tax return completed faster? Alternately, you have the option of paying an additional charge to have your taxes done faster. We can expedite your taxes for just $125 and have your return filed within just five to seven business days as long as your tax organizer is completed and on file.
No matter when you file your taxes you should know that:
Owner-operators have an obligation to pay quarterly taxes. If you did not pay your estimated quarterly taxes this past year, it is doubtful that you will receive a refund. However, if you provided timely and accurate information to ATBS throughout the year and paid the recommended estimates in each quarter, you will have most likely paid close to what your required annual payment will be. This means you likely will avoid penalties for underpayment of estimates.
Company drivers’ employers withhold taxes for them throughout the year. For many drivers, this will result in a refund each year if you are having the proper amount of taxes withheld. If you are due a refund, the IRS will not penalize you for filing your return after the May 17th deadline.
If you expect to owe taxes, an extension of time to file your return is NOT an extension of time to pay. You are still required to pay your tax liability by May 17th.
How do I send payment to the IRS with my application for an extension?
You can download a blank application for a tax extension here. If you'd prefer to have a completed extension voucher emailed to you, ATBS can provide you a copy of the extension we are filing on your behalf. Simply email email@example.com to make that request. In the subject line of your email, please include your ATBS Code.
Remember, ATBS is here to help you with the tax extension filing process! If you need any additional assistance, please contact your ATBS business consultant or tax professional at 888-640-4829.
What happens after the extension is filed?
Once you have filed your extension you will have until October 15, 2021 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 2021.
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.