This is tax filing week. Will you file on or before April 15, or file an extension?
30% - Already filed our 2012 return
31% - Will file by the April 15 deadline
39% - Will file an extension
When you’re an employee filing an individual tax return, most people get theirs done within a few days of receiving their W-2, 1099s and possibly K-1s.
When you become a business owner - especially as your business becomes larger - the tax preparation and filing process becomes more complicated, and therefore takes longer. Consequently, the ability to file an extension to push your personal tax filing date to October 15 can come in handy.
We wanted to know how small business owners are handling the April 15 tax-filing deadline. (Actually, it should be called a softline, since you can get automatic permission to extend for six months.) As you can see from the poll results below, a little more than 60% have met, or plan to meet, the Ides of April filing date, with the rest filing an extension.
Frankly, I’m surprised the extension filers were not more. I can’t remember when I didn’t file an extension. Unlike in the old days, when you had to write in and ask for permission, today you just go to IRS.gov, fill out form 4868 online, hit enter and ba-da-bing ba-da-bam, the new tax filing date for your personal income tax return is October 15.
But remember, this extension is only for filing, not for paying taxes. If you owe taxes for last year - even if you don’t know how much - you have to make a good-faith estimate and send it in by April 15.
Finally, I recommend you do what I do: Talk to a tax professional and let them advise you on any filing and tax paying.
The tax code is requiring more time from small businesses with Peter Sepp
U.S. income tax compliance costs businesses 6.7 billion hours with Peter Sepp
Looking forward to Tax Freedom Day with Peter Sepp