Pros And Cons Of Filing A Tax Extension

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Every year around this time, the one question that seems to take precedence above all others is have you filed your taxes? And although the tax deadline is approaching quickly, you would be surprised at how many answers are "no" or "not yet!" However, since your taxes are a force that aren't to be reckoned with, it's important for all individuals with financial obligations to be aware of what can be done if your time card does not allow for an on time tax return.

If you're concerned that Uncle Sam will come knocking before you have the time to meet with a financial planner like American Investment Planners LLC, you may be in need of a tax extension. See below for a few pros and cons that come with filing this type of request:

Pros:

1. First and foremost, a tax extension gives you extra time to fill out the tedious paperwork and meet with your financial advisor if you weren't able to do so before the deadline. That being said, though, it is important to note that it does not give you extra time to pay what you might owe. 
2. Since the first four months of the year is the busiest season for your advisor, it may be difficult to make an appointment at a time that best fits your schedule. But, since a tax extension gives you some leeway, you would be able to schedule a meeting for a time that works for the both of you. This does not, however, mean you should wait until the last minute - you should still give yourself plenty of time to set a date!
3. Last but not least, filing for a tax extension is relatively easy. If you are in a rush to file your taxes by the deadline, choosing this route can eliminate some of your stress, and likely won't cause any more due to its simple nature.

Cons:

1. Since you are still required to pay any taxes owed by the deadline, filing for a tax extension could subject you to late fees or penalties. Why? Without filing your taxes on time, you won't know how much you owe, if any!
2. On the other hand, if you are entitled to a refund, choosing a tax extension will delay when your refund winds up in your bank account. If you suspect a refund is on its way, your best bet would likely be setting aside some time to file by the deadline.
3. Filing later in the year doesn't make it any easier. The process will always be the same regardless of which month it happens in, so you won't be getting any breaks by filing later rather than sooner and vice versa. If you tend to push things off for later because they seem too complicated in the now, it would be wrong to assume that filing your taxes in August is any easier than it is in April.

Are you struggling to get your taxes done by April 15? If you're waiting on last minute tax forms or are in need of assistance with any aspects of this year's tax return or future tax returns, lean on American Investment Planners LLC for help! Our team of tax professionals have the tools, resources and strategies you need to make filing your taxes as easy as one, two, three. For more information, visit us at www.americaninvestmentplanners.com or contact us at (516) 932-5130 today.