As it gets closer to the April 15th income
tax filing deadline, more clients discover
that their best course of action is to file
an extension.
Generally, people "go on extension" because
they cannot yet determine their 2007
income. They're waiting for partnerships or
corporations they own to finish the
business's accounting. They still have to do
more research on the cost basis of assets
sold in 2007. Or, maybe they simply haven't
had time to collect all of the necessary
information.
These people have to ask the IRS for the
automatic filing extension.
If you ask for an extension, you
have until mid-October to prepare your tax
return, but, you still must pay what
you owe by April 15th to avoid penalties and
interest. In addition, your economic
stimulus check from the government
won't be sent out until after you file your
taxes.
We recommend that if you can, file now. Get
it over with! And, if you haven't yet sent
us your tax organizer and materials, do it
this weekend while there's still a
possibility to complete your taxes before
April 15th!
-- Geoffrey P. Kulik, CPA
Partner