Life is never as clear-cut as it should be, but there are steps you can take when tax season rolls around and you find yourself in a situation where you cannot file on time. Since being unable to file by the tax deadline is not uncommon, there’s no reason for embarrassment. Here are some of the reasons you might want to file for an extension—typically one to six months later—on your individual taxes in Sacramento, CA.
Missing or incomplete information
Yes, it’s irritating when an employer, company or institution misses a deadline for mailing your tax form, because it means putting your taxes on hold. Other times, form information may be incomplete or incorrect. Another common problem befalls independent contractors, also called freelancers. In many cases, a Form 1099 gets issued for freelance work. However, they don’t always get sent, or they may arrive after the filing deadline. The fact of the matter is, if you do not possess every tax form you know you should have, filing your taxes on time may not happen.
Unexpected life events
Your original plan may have been to file by the deadline, but life is unpredictable and unforgiving. From a sudden death or a family emergency to a personal illness or falling victim to a natural disaster, the last thing you need to worry about in these situations is filing your taxes. You should only need to focus your energy on yourself or your family at this time, not feel rushed to file your taxes by the deadline, especially since you can get an extension—when you request it before the tax due date. And if your reason is personal or private, don’t worry—you will not be asked to explain why you are unable to file by the deadline.
Out of town during tax time
Sometimes, certain people cannot adjust their plans, responsibilities or duties. For example, military personnel, overseas workers and world travelers may be out of town during tax season. If you fall into this category, the best route to take is to file early or file your income taxes electronically after downloading necessary forms. But you could still need paper forms or information—papers you likely won’t have with you, because you are not home. This sort of situation may call for an extension.
It’s important to keep in mind that requesting an extension for filing your taxes only grants you extra time to file the paperwork, not additional time to pay your taxes. Not to mention, you will likely have to pay interest and penalties on the tax amount that’s due. With that in mind, though it may seem like a safer plan, filing for a tax extension because you are unable to pay money owed is not the best idea. Instead, if you are ready to file now but cannot pay, file by the tax due date, and then see what payment options the IRS offers.
Be it record keeping or assistance with a tax extension, if you are looking for a company to handle your individual taxes in Sacramento, CA, give Yoder & Co., CPA a call today. We are here to help you with all your tax and financial reporting needs.