To File or Not to File …

TAX Chat

04.11.16 | TAX Chat

The tax return filing deadline for individuals, trusts, and estates is not until April 18 this year due to the Emancipation Day holiday in Washington D.C. However, if you haven’t filed already, you may be considering filing for an extension.

Extension Deadlines
Filing for an extension allows you to delay filing your return until the applicable extension deadlines as follows:

• Individuals: October 17, 2016
• Trusts and estates: September 15, 2016

Things to Consider
While filing for an extension can provide relief from April 18 deadline stress, it’s important to consider the following:

• Filing for an extension provides you with an extension of time to file your income tax return, not an extension to pay your tax liability. You will have to estimate your 2015 tax liability and pay any amount you expect to owe with the extension. You may also want to include paying your first quarter 2016 estimated liability with your extension. If you underpay the amount you eventually owe, you may be subject to interest and penalties on the balance due.
• If you expect a refund, remember that you’re simply giving the government an interest free loan.

However, due to circumstances beyond your control, you may have to file for an extension. If you’re missing critical documents or you face unexpected life events that prevent you from devoting sufficient time to your return right now, you should pay the expected liability and file for an extension.

If you are thinking about filing for an extension or have questions about how to proceed, contact me at hzemel@berdonllp.com or your Berdon advisor.

Hal Zemel, a Tax Principal at Berdon LLP, New York Accountants, has more than 20 years in public accounting and advises businesses in the real estate, service, and manufacturing sectors.