3 Myths About Extensions
Apr 05, 2023We're talking about tax extensions and busting some common myths around them. Many people worry that filing for an extension could increase their risk of being audited and don't fully understand what filing for an extension means for the payment of their taxes.
We will break these myths down in today's episode. I'll share some tips for using the extra time provided by the extension wisely and prioritizing timely filing and payment to reduce stress for both you and your tax preparer.
"Rip the band-aid off, jump in the cold plunge pool, do what you got to do - get uncomfortable, go in, get it done, and you'll feel so much better when it's over. I promise you."
\In this episode, you will learn the following:
1. What are the common myths about filing for an extension on taxes?
2. Does filing an extension actually increase your audit risk?
3. What should you know about filing an extension and the payment deadline?
What you'll hear in this episode:
[0:55] Breaking down myths around filing extensions for your taxes.
[1:20] Myth 1: You cannot file for an extension until the tax deadline
[2:32] Myth 2: If you file an extension, you increase the likelihood of being audited.
[4:05] Myth 3: Extensions extend the payment date of your taxes
[6:19] Bonus Myth 4: Can I extend my date beyond my initial extension?
Here are some brief snippets from this episode:
[00:00:40]
As we come up on the tax deadline, I wanted to break down for you how I view extensions. I want to tackle some common misconceptions that people have around extensions. There are plenty of legitimate reasons for extensions, and everyone is entitled to take their extensions.
[00:06:46]
April 18 is the deadline to file your tax return or pay your extensions. When you file an extension, it is just for the paperwork, not the payment. Make sure you're communicating with your accountant and letting them know if you plan to extend. This is your one stop shop for the beginning steps of entrepreneurship.
Related episodes:
104: What to Do When You Owe a Large Tax Bill with Jessica Smith
238: Why Your Tax Pro Says No to Creative Strategies
248: How to Take the Home Office Deduction
Resources:
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.
