Top 5 Reasons To Extend Your Tax Return

As April approaches, you may be considering extending your tax return. While many people tend to shy away from filing for an extension, the truth is that there are a lot of benefits to extending your tax return. Let's go over some top reasons to file for an extension. 

1. Because you can

Every taxpayer can get an automatic extension so, why not?  Whether it’s business or personal returns, all taxpayers have an opportunity to extend their tax return and you don’t have to explain why you need or want more time. 

2. Give yourself plenty of time to get organized and make sure all tax documents are in-hand

Tax documents have a way of just trickling in and it’s important to have all documents ready to go so that tax prep is efficient.  It’s a great idea to consult with your preparer and get a listing of all information provided in the prior year so you don’t forget something….and take your time in getting the data together so that you don’t accidentally miss something important. 

3. Avoid the tax season rush so your CPA has more time to work with you

Schedule your tax return prep during the late spring when your CPA has more time to help you to find ways to reduce your tax bill.   Rushing to get a tax return prepared often results in errors and missed opportunities….and since an extension is available, why create unnecessary stress for everyone? 

4. Dodge a potential audit when the IRS is filling up its audit pipeline in the spring

The IRS fills up its audit caseload leading up to April each year….why throw your name in the hat for potential red flags for the current year when you can delay?  We often hear that people believe that an extension is the audit red flag; however, that is a total myth and it’s actually the complete opposite situation. 

5. Possibility of filing a superseded return  

If you extend your return, file and then find an error before the extended deadline, you can file a superseded return instead of an amended return to make the correction.  A superseded return replaces the original return and the IRS never even looks at the old one…definitely could reduce audit risk. 

Work with Tax Professionals 

When it comes tax time rolls around each year, having dedicated tax professionals like the team at MB Group can help with tax prep. Contact us today to get started as soon as possible. 

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