Have you ever heard the phrase “tax season?” It’s the first few months of the year, where everyone scrambles to get their documents together so they can file their taxes before the dreaded deadline.
But is “tax season” even real? Here at Encurio, we say – not really! Here’s why:
You can extend! Filing an extension gives you a LOT of extra time by adding six months to your deadline. That means six extra months to gather your documents and collaborate with your accountant before you file.
We automatically file extensions for our clients who have not yet filed but have signed their engagement letter for the current tax year. To qualify, clients must sign their engagement letter by 2/28 (for businesses) and 3/31 (for individuals).
|Original Deadline||Extension Deadline|
|S-Corps, Partnerships||March 15, 2023||Sept 15, 2023|
|Individual, SMLLC, C-Corp||April 18, 2023||Oct 16, 2023|
**Deadlines reflective of 2023; tax deadlines in other years may vary
There are limitations to extensions. An extension means you can file at a later date, but if you owe for that year, you must pay by the original deadline.
If you owe, there are two ways to know how much you’ll need to pay.
- Estimates based on the previous year are most common. If your current year had no significant change from the last tax year, then we can easily provide you with vouchers for quarterly payments without any additional information.
- If your current tax year is significantly different from the previous year, a tax planning meeting will help determine what you owe. This is the best way to make sure you are paying the most accurate amount possible.
In both cases, it is incredibly important to make sure you plan ahead. Be sure to always communicate with your accountant in a timely manner and provide them with the most accurate, up-to-date information on your tax situation as possible.
Extensions take the pressure out of tax season, and with proper planning, extensions are easy! To kick off the tax season right, current clients should sign their engagement letters as soon as possible. If you did not receive an engagement letter, please contact firstname.lastname@example.org for more information.