And that’s it … we made it!

And even though we are now on the other end of tax season, I hope you’ll forgive this writing for being a little shorter than usual. We need the energy recoup time … and to that end, also know we will be working limited hours through the rest of the month before jumping in full again come May.

So, first, thank you for those concessions. But beyond that and much bigger, also thank you for your trust and confidence during tax season. We aimed to make this year more seamless and painless for our clients and we hope you felt that.

If you did, please, let us know. Being told what worked well can help us ensure we continue implementing such strategies into the future. And if things did not work for you, please also let us know that and we can hopefully make next year even better. For that trust and confidence can go both ways, and when it does, we can make things better for everyone.

But for now … rest.

Warmly,

Josh Bousquet
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Last week I wrote about extensions, how they don’t have to be feared, and can be the right move depending upon where in the tax filing preparation process you are. This can be a big weight removed from someone who has legitimate reasons why they would not be able to get their return completed on time. After all, this is not being awarded a two-week reprieve but rather gives one another six months to get things complete and filed.

But what about those who have not filed their taxes yet just because they did not start the process in time and only need to get moving to have things complete? Well, unfortunately this can often serve as an invitation to spend more time procrastinating.

This then is the article that is going to tell you that this is not a good idea. Granted, everyone knows this already, we mention it often during the start of tax season, but we still must keep trying.

After all, the reason that an extension can feel like a reprieve is because it does take a task that you have to do and pushes it much deeper down the calendar. If this was feeling like something that weighed on you on April 1, though, if you just decide not to think about it for a while, it is probably going to feel even worse on October 1.

And also, remember that an extension only gives extra time to file but not extra time to pay any taxes that you may still owe. So the sooner you take care of it, the sooner you can be sure you have a handle on that debt.

So, yes, there can be good reasons why one needs an extension and needs to use the time that it gives, but if you don’t have a good reason, get on top of things as soon as possible so that this can be something you can really not think about anymore.

Warmly,

Josh Bousquet
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We have made it. It is now officially April.

For many of you, this will mean that your taxes are completed or that your return is on the verge of completion.

For others out there, this will mean that it is time to get an extension.

How people feel about extensions covers quite a spectrum. Many worry about them as if they could be some tip-off to the IRS that their tax return is not quite what it should be, like turning in a late assignment at school.  Well first, have you seen how the IRS is doing with its funding and employment lately? But even beyond that, realize that an extension is instead a chance to make sure that you do get everything right. You could potentially rush a return through with some numbers placed approximately where they belong, but that opens the chances for mistakes that really could draw someone’s attention more than that you had an extension before filing. After all, extensions are legal and offered by the agency to give you more time when it is needed.

On first glance, this then seems to say that April 15 isn’t really much of a deadline at all and that the real one doesn’t come until the extension is over in October. And to be fair, this could even be true for some people. For many, though, it is not the case.

Remember that an extension gives you more time to file your tax return, but it does not give you more time to pay any taxes owed. If you do owe taxes and do not file a timely return, you can start adding potential fees and interest you will owe on top of the original amount. This doesn’t mean that you instead should move to a strategy of not filing an extension, because what does it matter anyway? Where it matters is that the more on the up-and-up you remain with the IRS, the fewer of those fees you could be liable for. So if you know you will owe money, the agency even expects a payment to come with your extension.

In the spectrum of how people feel about extensions, though, are also those who have had one in the past and found it does not mean anything bad and instead revel in how it eases their time-crunch stress. It’s all just a matter of understanding where you stand in the process and what an extension means becomes of that.

Warmly,

Josh Bousquet
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