Jake Snelson - Vyde

Q&A: My 6 month extension on my personal taxes is due on 10/15. Help!

If you filed a 6 month extension on your personal taxes in April, it probably seemed like October 15th was eons away. As always, time flies by and you may be feeling a little anxious about the rapidly approaching tax extension deadline.

If you filed a tax extension and still haven’t finished your personal taxes, here’s what you need to do:

If you owe a tax bill to the IRS, make sure you paid it when you submitted your 6 month extension. If you didn’t pay your tax bill then, that is the most important thing to take care of. The sooner you make that payment to the IRS, the less penalties and interest you will have to pay.
Start your return now. Don’t wait until October 14th to start on your return and then rush through it. Give yourself time to gather the proper documents and file your personal taxes accurately.
E-file or send your tax return to the IRS by October 15th. The IRS does not accept e-filed tax returns after October 15th and mailed tax returns must be postmarked by this date as well.
Contact a CPA. They can help you gather needed tax information, accurately fill out your tax return, and file it for you. They can even help you set up a payment plan with the IRS if you cannot make your full payment right away. Vyde accountants and virtual bookkeepers can help you file your personal taxes with the IRS before the October 15th deadline.

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Top 10 Things You Should Do If You File a Personal Tax Extension

Q&A: How to file an individual income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: What if I missed the IRS tax extension deadline?

Q&A: What if I can’t file my personal taxes by my IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

There are few deadlines in the year more important than April 15th. Every adult in the nation is affected by tax day, and all can feel a little stress because of it. However, sometimes that April 15th deadline seems to come sooner than we would like it, and there’s just no way to get income taxes filed on time. That’s why the IRS offers a tax extension option to individuals and businesses who cannot meet the April 15th filing date. This gives taxpayers an additional 6 months to properly fill out and file their tax returns.

Feeling a little guilty about needing extra time on your taxes? Don’t. Millions of tax extension are filed each year.

Here are 6 reasons why filing a tax extension is a good idea:

It offers the chance to do it right the first time. The IRS would rather you file your taxes accurately the first time they receive them, rather than waiting for you to make corrections and fill out an amended return. It also saves you time by making sure your information is correct when you fill out your return and not having to rush through and make simple errors.
Returns that have been extended are less scrutinized than amended returns. A tax extension request doesn’t raise any red flags with the IRS, but amended returns sometimes do. The IRS will likely not be suspicious of an extended return and you are not more likely to be audited because you submitted one. However, filing a tax extension does not decrease your risk of being audited either.
Extensions are easy to file. All it takes is one quick form sent to the IRS (Form 4868) and you’ve got an extra six months to gather your paperwork and fill out your return. Keep in mind though that a tax extension doesn’t give you more time to pay your tax obligation; it only gives you more time to file your paperwork. Your tax payment is still due by April 15th.
Extensions are automatic. You don’t need to wait to hear back from the IRS if you filed an extension on your personal taxes. As long as you submitted your request on or before April 15th, the extension is automatic and you will not be notified.
It allows you more time to file. The most obvious and rewarding reason for filing a tax extension is that it can help you breathe easy for a while if April 15th came just a little too quickly this year. A tax extension gives you six extra months to gather important paperwork like 1099s and K-1s.
You can work with a professional CPA. If you didn’t have time to squeeze in an appointment with your CPA during the official tax season, a tax extension gives you plenty of time to do so. Your CPA will likely have more time to meet with you after April 15th, and it may work better for your schedule, too. Consulting a tax professional will help you feel secure in the accuracy of your tax return.

Other posts that might interest you:

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

Q&A: How to file a corporate business income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

Q&A: What if I can’t file my corporate business taxes by my IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my corporate business taxes?

Q&A: How do I file an amended tax return for my business?

Q&A: What if I missed the IRS tax extension deadline?

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

The IRS requires you to fill out a Form 4868 to request a tax extension, but many states also have their own guidelines on requesting an extension on state taxes. Some states, like California offer automatic extensions, while many other require separate paperwork from the Form 4868.
Since almost every state in the US is different in this regard, you’ll need to check with your state’s tax authority to see what you need to do to file a state tax extension. States including Alabama, California, and Wisconsin offer automatic six month extensions without any additional forms, while New York grants extensions but they must be requested specifically. Nine states do not have a state income tax, so you don’t even have to file an income tax return in those states.
See detailed information about state extension filing deadlines and mailing addresses by selecting your state of interest from this state tax authority’s website. Many states have state-specific tax extension forms, separate from the IRS Form 4868.
Keep in mind that a tax extension with the IRS and with your state does not also mean an extension to pay any taxes you may owe. This payment is still due by the original tax deadline of April 15th. To avoid paying any penalties, calculate a quick estimate of what you might owe and submit a payment with your tax extension paperwork. Even if you overpay, you can always claim a refund in a few months when you eventually file your state tax return.
Extended state tax returns are due October 15th, which is the same IRS deadline. If you miss the extended tax deadline, you will likely be subject to penalties and interest from both sources. Have more questions on state tax extensions? Vyde can help answer them and other small business bookkeeping questions.
Other posts that might interest you:
6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision
Top 10 Things You Should Do If You File a Personal Tax Extension
Q&A: How to file an individual income tax extension with the IRS
Q&A: My 6 month extension on my personal taxes is due on 10/15. Help!
Q&A: What if I missed the IRS tax extension deadline?
Q&A: What if I can’t file my personal taxes by my IRS tax extension deadline?
Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

Q&A: How to file a corporate business income tax extension with the IRS

The IRS allows businesses to file an income tax extension which provides additional time beyond the original deadline for filing income taxes. For most business partnerships, the original filing date is April 15th; while most corporations, including S-Corps and C-Corps have their taxes due on March 15th. A corporate business income tax extension provides an additional 5 or 6 months to file.

All businesses owners other than sole proprietors should submit an IRS Form 7004 to request an income tax extension. Since all business activities are reported on a sole proprietor’s personal tax return, they will need to submit a Form 4868 instead. You do not need to provide a reason for requesting a tax extension, but your income tax extension request must be submitted by the original due date of your taxes (March or April 15th). Business tax extensions are automatic and only rejected if there is an error in the information provided on the Form 7004, such as an incorrect tax ID number.

A corporate business income tax extension does not give you extra time to pay your taxes, it only provides additional time to fill out your tax forms. You are still expected to pay any taxes you may owe by the original due date. It is best to pay your taxes when you submit your tax extension to avoid IRS penalties and interest charges.

A business tax extension can be filed electronically or by mail, but must be filed online by midnight or postmarked by the original tax deadline.

If you filed a business income tax extension this year and need help preparing your taxes, Vyde can help.

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

Q&A: What if I can’t file my corporate business taxes by my IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my corporate business taxes?

Q&A: How do I file an amended tax return for my business?

Q&A: What if I missed the IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my personal taxes?

Up until 2005, a tax deadline extension granted an individual or business an additional four months to file taxes, beyond the April 15th filing deadline. If taxes could not be filed within that time period, a second extension was available and granted an additional two months to file taxes. However, the IRS has since done away with this rule. Second IRS tax extensions are no longer available for business taxes, and are only available in specific circumstances for personal taxes.

If you filed a tax deadline extension by April 15th, your new deadline to file personal taxes is October 15th. While a tax deadline extension grants additional time to fill out and submit your tax forms to the IRS, it does not grant additional time to pay any taxes that may be due. All tax payments must be made by April 15th, and are generally submitted with the tax extension form.

In special circumstances, the IRS grants individuals a second IRS tax deadline extension for personal taxes. These circumstances include:

Members of the US Military: Members of the Armed Forces who are serving in a combat zone or contingency operation at the time their taxes are due, are eligible for a second personal IRS tax deadline extension of up to six months. The tax extension begins once their deployment ends.

Taxpayers Living Outside the US: In certain situations, taxpayers living outside the United States are granted an additional two month tax deadline extension for their personal taxes. This request must be made by October 15th, and can be done by filling out the appropriate second tax extension form on the IRS website.

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Top 10 Things You Should Do If You File a Personal Tax Extension

Q&A: How to file an individual income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: My 6 month extension on my personal taxes is due on 10/15. Help!

Q&A: What if I missed the IRS tax extension deadline?

Q&A: What if I can’t file my personal taxes by my IRS tax extension deadline?

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

If you filed a corporate business tax extension this year, you now have an additional five or six months to file your taxes, depending on when your original tax deadline was. Most corporate business tax extension requests allow a business owner until October 15th file taxes with the IRS. Some tax extensions are only valid until September 15th if they are operating based on a calendar year, rather than a fiscal year.

Assuming you’ve already sent your Form 7004 to the IRS requesting an extension, here’s what you need to do next:

Determine your tax payment and submit it to the IRS before April 15th. If your business bookkeeping is up to date, you should be able to determine your payment total by multiplying your taxable income by your current tax rate.
Subtract any quarterly estimated tax payments you have already made throughout the year from your tax payment. It is best to submit your tax payment and your tax extension request at the same time.
Wait for an approval from the IRS. Unlike a personal tax extension request, a corporate business tax extension must be approved before proceeding. The IRS will generally approve or deny your request within 24 hours of submitting your corporate business tax extension paperwork.
Check to see if you need to file a state tax extension form as well. If you don’t owe any state taxes, you do not need to file an extension form. Click here for specific instructions on filing a personal tax extension in your state. In many cases, unless you owe state taxes, your federal automatic extension can be used to extend your state return(s) as well.
If you are not able to pay your entire tax bill or did not submit any taxes due by the April 15th deadline, contact the IRS about setting up a payment or installment plan.
Small businesses with employees can apply for an in-Business Trust Fund Express installment agreement. Find out if you qualify here.
If you haven’t already, start preparing your tax return now. If you filed a corporate business tax extension but don’t necessarily need the full five or six months, it is best to get your return completed as soon as possible.
If your corporate business tax extension request happened to be rejected by the IRS, they will notify you. Your request may be rejected for various reasons including a recent name change, business type change, if you moved your office, or entered your Tax Identification Number incorrectly. You will need to make any corrections on your tax extension request and resubmit.
Hire a professional. If you’re behind on your medium or small business bookkeeping and taxes, a professional accountant can help you get caught up, file your taxes by your extended deadline, and maintain current records for the tax year ahead.
Submit your tax return by the September or October 15th deadline. If you plan to e-file, your return must be submitted by midnight; if you plan to mail your tax return to the IRS, it will need to be postmarked by the due date.

Filing a corporate business tax extension is can be a complicated process, depending on your business entity type and the amount of tax documents you need to catch up on. If you still have questions about your personal tax extension, contact Vyde; we can help.

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Q&A: How to file a corporate business income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

Q&A: What if I can’t file my corporate business taxes by my IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my corporate business taxes?

Q&A: How do I file an amended tax return for my business?

Q&A: What if I missed the IRS tax extension deadline?

Q&A: My 6 month extension on my corporate business taxes is due on 9/15. Help!

If you filed a 6 month tax extension with the IRS for your corporate business taxes back in April, it probably seemed like October 15th was eons away. However, that rapidly approaching October 15th deadline may have you feeling a little stressed out. If you filed a tax extension and still haven’t finished your tax return, here’s what you need to do:

If you owe a tax bill to the IRS, make sure you paid it when you submitted your 6 month corporate business tax extension. If you didn’t pay your tax bill then, that is the most important thing to take care of. The sooner you make that payment to the IRS, the less penalties and interest you will have to pay.
Start your return now. Don’t wait until October 14th to start on your tax return and then rush through it. Give yourself time to gather the proper documents and file your corporate business taxes accurately. Corporate business taxes can get complicated in a hurry with multiple forms to fill out; it’s best to take your time and do it right the first time so that you don’t have to worry about filing an amended return later on.
E-file or send your tax return to the IRS by October 15th. The IRS does not accept e-filed tax returns after October 15th and mailed tax returns must be postmarked by this date as well.
Contact a CPA. They can help you gather needed tax information, accurately fill out your tax return, and file it for you. They can even help you set up a payment or installment plan with the IRS if you cannot make your full payment right away. Vyde accountants can help you file your corporate business taxes with the IRS before the October 15th deadline. Contact an accountant with any questions you may have about your tax extension.

Other posts that might interest you:

6 Reasons Why Filing a Tax Extension with the IRS is a Good Decision

Top 10 Things You Should Do If You File a Corporate Business Tax Extension

Q&A: How to file a corporate business income tax extension with the IRS

Q&A: Do I need to request a state tax extension if I filed an IRS tax extension?

Q&A: What if I can’t file my corporate business taxes by my IRS tax extension deadline?

Q&A: Can I file a second IRS tax deadline extension for my corporate business taxes?

Q&A: How do I file an amended tax return for my business?

Q&A: What if I missed the IRS tax extension deadline?

The Top 10 Tax Deductions for Realtors & Real Estate Agents

Almost everything you buy for your real estate agency is tax deductible, as long as it is ordinary, necessary, and reasonable. The great thing about spending all that money on your real estate agency throughout the year is that the expenses can be subtracted from your taxable income at the end of the year and can really help you out during tax season. So just what is tax deductible when it comes to being a realtor ?

Top 10 Common Tax Deductions from the Real Estate Pros:

Car Deductions. Undoubtedly the single most commonly claimed tax deduction for all small businesses — but especially for real estate agents. While you can’t deduct your drive to and from the office, all the other driving you do for your real estate business is deductible, like driving clients to see homes or putting up signs. We talked more about how to track mileage and deduct those expenses, here.

Office Expenses and Supplies. The great thing about real estate is that you’re not stuck behind a desk all day, yet you still have plenty of desk work to keep you busy. Any office supplies you purchase — from post-it notes to printer ink to a new office chair — is tax deductible. Don’t overlook the big items either, like office rent, utilities, and renter’s insurance. If you work from home, you will claim a home office on your taxes and your deductions may be calculated differently.

Professional Services. Any fees you pay for consulting, accounting, and legal advice. can be deducted, as long as they are directly related to your business. This includes networking groups.

Travel. When you go out of town for real estate, you can deduct airfare, taxi rides, train tickets, and other transportation at 100%. You can also deduct hotel/lodging expenses at that rate. However, only 50% of your meals and entertainment can be deducted for business travel, but if your trip is well planned you may be able to squeeze in a little fun while you’re away.

Insurance. If you have business liability insurance or insurance on your business property, it is tax deductible. If your office is in your home, only a portion of your homeowner’s insurance is deductible. If you are completely self-employed, you can also deduct 100% of your health insurance premiums.

Meals and Entertainment. Expounding on deduction 4 above, meals and entertainment can be deducted at 50% only if a serious business conversation took place before, during, or after the event.

Advertising Expenses. Any money you spend to promote your real estate agency is tax deductible. This includes business cards, website creation, website design, website hosting, promotional signs and billboards, balloons, open house costs, promotional events and/or booths, and home demonstrations. Keep close track of advertising expenses; they add up quickly in real estate!

Computer Software. Any leased or purchase software for your real estate business is tax deductible. Microsoft Office to QuickBooks to Adobe Creative Cloud, as well as software, can be deductible.

Education Expenses. Any money you spend to further your knowledge or skills in the real estate business is tax deductible. Whether you take an online class, enroll in a college course, take a mandatory certification or CE (real estate continuing education), or subscribe to a real estate magazine, you can deduct the money spent on improving yourself professionally.

Cell Phone. It’s no surprise that realtors use their phones perhaps more than many other small business owners. They’re constantly connecting with clients, brokers, home owners, home buyers, coworkers, and lenders. Calculate the percentage of time you use your phone for business and use that number to determine the deductible portion of your phone bill. If you have a smart phone, you’re likely using your phone for business even more to research addresses, neighborhoods, and mapping home visits with clients.

Realtors and brokers have hundreds of tax deductions available to them. We’d love to help you with your real estate tax deductions; give us a call today.

Other posts that might interest you:

How to Legally Structure a Real Estate Partnership or Agency

How to Track & Separate Business and Personal Expenses as a Realtor or Real Estate Agent

What You Can and Cannot Deduct for Advertising Your Real Estate Business

Top 4 Tips on Tracking Mileage and Deducting Vehicle Expenses as a Real Estate Agent

6 Ways to Save Time and Money on Bookkeeping and Accounting as a Realtor or Real Estate Agent

How to Calculate Self-Employment Taxes for Real Estate Professionals and Agents

How Do I Figure My Estimated Quarterly Taxes? For Realtors, Real Estate Brokers, and Property Managers

How to Develop an Exit Strategy for Your Real Estate Agency Partnership

How to Develop a Succession Plan for Your Real Estate Partnership

What percentage of my work time do you recommend I spend on accounting?

Q: What percentage of my work time do you recommend I spend on accounting?

A: It depends. Here’s a few basic things to keep in mind when you’re setting aside time for bookkeeping and taxes.

1.Do you have a system in place? Right now, take stock in the methods you have for financial record keeping. Do you have a place for receipts? A spreadsheet to track expenses? Have you found answers to any burning questions like whether or not you can deduct an expense or have to report product you received from a company? And most importantly, are these methods organized and up to date? It doesn’t count if you have a system that you don’t use or that isn’t efficient.

If you’re up to your knees in unrecorded receipts or you dread the idea of sitting down and entering numbers on a spreadsheet – it may be time to consider hiring an accountant to provide bookkeeping and tax services. Peace of mind is worth the cost.

2. Hiring an expert may actually cost you less than doing it yourself. It seems like a huge up front cost to hire an accountant, but what if it provided you with more time to work? You might actually be able to make more money if you delegate it to someone who knows the ins and outs. And the icing on the cake will be when that expert gets you a larger return than if you had done it yourself.

3. If you have a system in place, but still wonder if you’re spending too much time with the books and not enough time building your blog or business, you might also want to consider hiring an expert. Check out our plans & prices as well as a comparison chart of Mazuma vs. tax accounting software (scroll down to the bottom of the page). You’ll be surprised at how much expert help you can get for your dollar.

Check out our other Tax & Accounting FAQs for bloggers here:

What is the biggest tax mistake bloggers make?

How do I figure out if I deduct all or part of my new computer?

If I have an LLC, must I pay for all my business expenses with my business account?

Can I count digital products I give away for review as expenses?

What can I deduct for this blog conference? Are clothes deductible?

What is the best way to keep track of the little expenses that add up over the year?

What potential business expenses might I have as a blogger?

What do you suggest bloggers do when given free stuff as compensation?

What percentage of my work time do you recommend I spend on accounting?