What do you know about tax extension? It is a request by taxpayers to extend the deadline for completing their federal income tax return; italso involves paying tax (including anticipated tax) and filing tax extension forms. However, it does not allow you to postpone your tax settlement deadline. Furthermore, you may ask that the IRS extend your tax filing deadline by 60-120 days or until October 15. The original deadline is April 18, and if you request an extension, it might go past October 15.

However, while an extension lets individual taxpayers and companies of Sugar Land have more time to finish their returns, many people inquire about whether it increases their chances of being audited by the IRS. For more information, contact a business consultant in Sugar Land, TX. 

Risks involved in tax filing extension for tax audit

It is essential to keep in mind that an extension is not an extension of the date for paying any unpaid taxes. If you owe taxes and do not pay them by the original tax date, you could be charged interest and penalties. You should contact the IRS to find out your options if you are unable to make payments for your taxes by the deadline, which might include a payment plan or a deal in compromise.

Red flags include claiming excess deductions, ignoring to report every profit, and claiming improper business costs.

Is it safe to file a tax audit after the deadline has passed?

The answer is yes: it is safe. Filing for a tax extension will not increase your chances of getting audited by the IRS. Actually, the IRS encourages individuals to ask for extensions if they require extra time to gather tax information and finish their forms correctly.

Is e-filing your tax extension a good choice?

Yes, e-filing enables you to submit your business’s extension quickly and easily. Furthermore, when companies or people submit tax extensions electronically, they receive an approval message in the mail from the IRS. In addition, you are able to monitor the status of your filing. As a result, you can feel sure that you are applying for a tax extension through an authorized website.

Amending is not necessarily a bad thing; there might be conditions when you want or need to make adjustments to your return. But use amended returns carefully. For example, revised returns are more likely to be scrutinized. You will not have to do it again if you file correctly the very first time.