Requesting A Tax Return Extension: Facts and Myths

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Have you ever filed a tax extension? Or have you been worried about the implications of having to do so? Then read below on some of the common facts and myths regarding tax extensions.

Statement #1: Taxpayers can get an automatic six-month extension from the IRS.

FACT! Not ready to file on April 15? Don’t worry! We file a six-month extension that extends the deadline to file to October 15. For business returns, the original deadline is March 15 and the extended deadline is September 15. NOTE: For the 2020 filing season, the April 15 deadline was automatically moved to July 15, due to COVID-19.


Statement #2: An extension also extends my time to pay tax owed.

MYTH! This is incorrect! While you can file an extension to file by October 15, your tax liability is owed on April 15. Thus, if you wait to pay until later on in the year (whether that be May or October 15), you’ll owe some interest and penalties on top of the tax liability due. That’s why it’s always best to try to have an estimate on what you might owe and send in as much as you can by April 15. NOTE: For the 2020 filing season, the April 15 deadline was automatically moved to July 15, due to COVID-19.


Statement #3: IRA contributions are still due by the April 15 deadline.

FACT! If you’re planning on contributing to an IRA, you’ll want to make sure to do this by the original April 15 deadline (NOT the October 15 extension) to get the deduction on that tax year’s return.  NOTE: For the 2020 filing season, the April 15 deadline was automatically moved to July 15, due to COVID-19.


Statement #4: It’s better to go ahead and file my return on April 15, even if I think more tax documents might come in or I might need to gather more self-employed information.

MYTH! It might make you feel better to have your return filed by April 15, but if additional tax documents come in later on or if you find more information that hadn’t been included initially, you will have to file an Amended Return to correct the original return filed in haste. These amended returns can only be processed manually (not e-filed), so you’ll have to physically sign and mail in the Amended Return. (Note: As of June 2020, the IRS has stated the starting with 2019, amended returns will be able to be e-filed. But it's still preferred to not have this if possible. 😉)


Hopefully you now better understand the implications of a tax return extension. But as always, feel free to reach out to us at Arndt & Company with any questions!

Thank you!
Kayla Weaver, CPA

Disclaimer: This article is not intended to be tax advice, and it does not cover all possible scenarios and/or rules within the tax code. Please contact Arndt & Company or your CPA for further information or clarification.

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