Although tax day is April 15, the same day every year, people still find themselves struggling to get their records together. If that’s you, you’re in luck. The Internal Revenue Service allows taxpayers to file for an extension until October 15 if they need more time to prepare. The IRS automatically grants the extension as long as the proper form is completed on time. Let’s look at a few reasons to work with PPL to file a tax extension.
Benefits
When you file an extension with PPL, it’s easy, and even better, it’s free. Filing an extension can also relieve a lot of stress by giving you more time to thoroughly review your return and make sure you’re getting the most out of your tax benefits. Another advantage is that you’ll avoid failure-to-file penalties that can add up to 25% of the tax due. Note though that you will be subject to this penalty if you fail to file by the extended deadline. One interesting thing to think about is that an extension will allow you to take advantage of retroactive changes to the tax law that might be made after the filing deadline. Sometimes filing for an extension may decrease your odds of being audited because the IRS auditors need to meet quotas and do so early in the year.
Timing
Often people get busy or have to deal with a significant life event that could interfere with the tax deadline. Filing an extension, as long as it’s done within a week of the deadline, allows you to focus on your situation without having your taxes on your mind.
Out of Town
Being out of town for work or vacation can compromise your ability to meet the filing deadline. Often, we see retired couples living life to the fullest, traveling from place to place up to six months a year. Filing an extension is perfect for when they’re heading back home to give them time to gather their documents.
Information
What happens if you don’t have all the information you need or if your information may be inaccurate? What happens if your Form 1099 arrives too late to complete your tax return by the filing date? These are perfect examples of why and when to file for an extension. If you have multiple investments, capital gains and/or sales proceeds, this information often needs correction and could also require an extension.
Let PPL help
PPL can help file your extension to ease your mind that everything is taken care of and done right. Contact one of our team members today to get started with filing your tax extension or tax return. We are here for you!