The Advantages of Filing a Tax Return Extension
Although filing a tax extension may seem like an action that only irresponsible or unprepared people take, there are actually some advantages to the strategy. Many people actually use it to their financial advantage. This article will list a few reasons that you might consider filing a tax return extension in 2013.
Incomplete tax documentation
Since, the IRS will grant your extension as long as you file your application correctly, take this time to gather all your documents to ensure that your return is accurate and complete. You can take this time extension to request a duplicate W-2 from your employer in the case of a lost original.
Converting your traditional IRA to a Roth IRA may give you more tax savings by avoiding tax payment on the balance and in some cases might avoid obligation to pay tax on this particular investment.
Sometimes the unexpected happens, a death, illness or even a celebration might keep you from having time to file your tax return. Take the time granted by the IRS and file your return accurately.
If you file a tax return extension, your new tax deadline is October 15, 2013. But, if not submitted to the IRS by that date, you will incur a 5 % penalty increase every month, calculated from the original deadline.
© 2012, Bruce McFarland. All rights reserved.