3 Reasons Why You Might Need to File a Tax Extension

When tax deadlines are looming, it can be a stressful time to finish gathering the applicable information and to have the money ready for payment. If you don’t think that you will be able to file your taxes in time for the deadline, then you might consider talking with your accountant about the option to file a tax extension.

It is possible to delay your tax filing, but you need to make sure that the necessary paperwork is submitted to the IRS. Once that tax extension is granted, you will have an additional six months to complete the required tax filing documents.

This tax extension can be beneficial if you need a little more time to work with your small business bookkeeper to finish gathering information for the tax return. These are a few common reasons why small business owners choose to file for a tax extension:

1. Incomplete Tax Records

Online bookkeepers can help you keep the records that are needed throughout the year, making it simple for you to gather the information that is needed for your tax filing. But, if you don’t have the information ready to go, then you might consider filing a tax extension to give you a little more time to finish things up. For example, if you need to find copies of 1099’s or you have lost some of the invoices, then you can use this extra time to double check your records and make sure that the information on your return is accurate.

2. Schedule Interference

Sometimes a busy schedule gets in the way of preparing documents for tax filing, and timing interference is one of the common reasons why people choose to file for a tax extension. It can be stressful to prepare documents for your personal taxes and business taxes at the same time, and it might be beneficial to file for an extension to complete everything that is needed. If you are still short on time, talk with a bookkeeping service which can help you get everything wrapped up and ready to go.

3. Life Events

Did you have the intention to file your taxes in time, but unexpected life events popped up? Sometimes things such as an illness, a natural disaster, or a death in the family might hinder your ability to file your taxes. Simply file a tax extension, and you will have a little more time to handle your life events and prepare for your taxes at the same time.

At Easier Bookkeeping, our affordable bookkeeping services are designed to track your small business information throughout the year, making tax time as easy as possible for you. If you need help with small business bookkeeping, then we invite you to contact us anytime at: (888) 620-0770

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