Filing a tax return..

Filing taxes can be stressful, and sometimes we need more time to ensure that we file an accurate and complete tax return. Two options for taxpayers who need additional time are tax extensions and amending a tax return. In this post, we will discuss the differences between these two options, and when each option might be appropriate.

Tax Extensions

A tax extension is a request for additional time to file a tax return. Taxpayers can request a six-month extension by completing and submitting IRS Form 4868. This form must be submitted by the original due date of the tax return, which is typically April 15th.

It is important to note that a tax extension does not grant an extension on paying any tax owed. Taxpayers who do not pay at least 90% of their tax liability by the original due date will be subject to interest and penalties. However, a tax extension can provide additional time to gather the necessary information and file an accurate tax return. This will avoid you forgetting important documents or rushing to file causing you to owe more taxes.

Amending a Tax Return

Amending a tax return, on the other hand, is the process of making changes to a tax return that has already been filed. Taxpayers may need to amend a tax return if they realize they made an error or omitted information on their original return.

To amend a tax return, taxpayers must file Form 1040X. This form must be filed within three years of the original due date of the tax return or within two years of the date the tax was paid, whichever is later.

It is important to note that taxpayers cannot amend a tax return to claim a refund after the three-year deadline has passed. Additionally, taxpayers who owe additional tax as a result of amending their return should pay the amount owed as soon as possible to avoid interest and penalties.

Which Option is Right for You?

Taxpayers who need more time to file an accurate tax return should consider requesting a tax extension.

However, taxpayers who have already filed their return and realize they made an error or omitted information should amend their return as soon as possible.

It is important to note that taxpayers who owe additional tax should pay the amount owed as soon as possible, regardless of whether they are filing an extension or amending their return. Taxpayers who are unsure which option is right for them should consult with a tax professional.

In Conclusion

In conclusion, tax extensions and amending a tax return are two options for taxpayers who need additional time to file an accurate and complete tax return. Tax extensions provide additional time to file, while amending a tax return allows taxpayers to correct errors or omissions on a previously filed return. Taxpayers should carefully consider their situation and consult with a tax professional to determine which option is right for them.