Filing taxes can be a stressful and dreaded task for many individuals. However, there is an option to go on extension and file your taxes by October 15, instead of the traditional April 15 deadline. This automatic extension can be requested easily by electronically requesting Form 4868 through the IRS Free File partner software on IRS.gov. All individual tax filers, regardless of income, are eligible for this extension, as long as they estimate their tax liability and file the form by April 15, 2024.
While the six-month extension gives taxpayers more time to file their taxes, it does not extend the payment deadline. Despite the allure of the extra months, there is no concrete data suggesting that filing taxes on extension increases the likelihood of an audit. In fact, filing on extension may actually decrease the audit risk, as it allows individuals more time to gather records, consider reporting alternatives, and seek professional advice to ensure accurate filing and reduce the need for amendments.
Amending tax returns may be necessary in some cases, but it is best to file accurately the first time to avoid amendments. Amended returns are more likely to be scrutinized, so it’s advisable to use amended returns sparingly. By going on extension, taxpayers have the flexibility to file their taxes anytime between April 15 and October 15. This additional time can also be beneficial for addressing any debatable points on the return or waiting for corrected Forms 1099 and K-1, as well as seeking professional advice to ensure accurate filing.
Taking the time to get professional advice on debatable points in the tax return can help avoid potential issues and ensure accurate reporting. Filing on extension also reduces the risk of being surprised by a late corrected Form K-1 or 1099, which may require amending the tax return. By filing once and filing correctly, individuals can minimize the need for amendments and reduce the likelihood of errors that could trigger an audit.
Ultimately, going on extension can provide individuals with the necessary time to gather all relevant documents, seek professional advice, and ensure accurate filing of their tax returns. Despite the common perception that filing on extension may increase the audit risk, there is no concrete evidence to support this claim. By utilizing the extension period effectively, taxpayers can reduce the likelihood of errors, amendments, and potential audits, ultimately making the tax filing process less stressful and more efficient.
