Finance : Advantages and disadvantages of tax extensions

An extension of the tax is a simple process, you have six more months to file your tax return. For some of the taxpayer an extension of the tax is a good idea, for others it can not be a good idea. Let's take a look at the pros and cons of deposit to help you, the best decision for themselves.

PROS

An extension gives you an additional tax of six months time to submit your. If you know you can have your taxes done on time, is the reason, it is a good choice. It is always better to get a sequel to an incomplete customs declaration file.
An extension of the tax does not increase the likelihood of a trial. Some people mistakenly believe that the extension of the tax is a red flag for auditors.
There are no fees, penalties or interest associated with an expansion of the tax.
There are no last minute rush to file your return. For many taxpayers, the tax return filed within the time limit was very stressful. Why not starting your stress level and file an extension? Then you will not have to worry about running around to take care of your tax return to arrive on time.

CONS

Filing a tax extension income does not give you more time to get your papers, but they can not buy time to pay. Your taxes are still outstanding by 15 April, if need be. Filing does not alter this fact an integral part. When you submit your extension, you need an examination of at least ninety percent of what you need to send or too late and start to collect interest, penalties and fines.
When you file, you will not be able to electronically submit. All applications received after 15 April must be submitted to be made by post and can be done electronically.
The Internal Revenue Service is unlikely to be warned that they have received your extension. You need to contact them if you try to deposit the recognition that the extension has been awarded, would like to receive.
Delaying the inevitable is not always a good idea. If you are the type of personality that tends to take the things that it might be better just to drop 15th April with the rest of us. You need to think that very much with her in October, and you can not again get afloat, if you want to enter into serious difficulties in obtaining refunds of taxes to the Internal Revenue Service.
Say it again. You still have to pay your taxes before the 15th April, the extension or not! Too many people make this mistake occurred and confronted with much more to the IRS that their first responsibility. We should have a check in payment of tax with your extension. The extension extends the deadline for completing the formalities for six months. Your payment obligation is not extended.