The first day of spring means tax day is coming! In case you weren’t aware, tax day is only four weeks away! The tax deadline for 2016 is April 18th, 2016. Most people assume that April 15th must fall on a weekend since the deadline is after the 15th. Actually, tax day is postponed because April 15th, 2016 is Emancipation Day in Washington DC only. Yes, a holiday in a city with only 0.000000313 percent of the country’s population delays the tax filing deadline for the entire country from Friday until Monday. https://www.irs.com/articles/tax-deadline-alert-2015-tax-returns-are-due-april-18-2016
Even with the tax deadline extension this year, there’s only 4 weeks left to file your personal tax return or your partnership (form 1065) tax return. One of the most common reasons I hear people say they are not filing yet is because they are going to owe a balance. If you’ve paid enough estimated taxes through quarterly estimates or paycheck withholding you don’t have to pay the final balance due until April 18th no matter when you file your taxes. You can file on January 31st, but still not send the check in until April 18th. The check doesn’t even have to arrive before the 18th, it just needs to be postmarked by then!
What if you aren’t going to be ready to file your taxes by April 18th? What do you do then? File an extension! You can file an extension at any time and you don’t have to wait until mid April to file it. File it now and get it out of the way. When you file the extension, you need to pay the balance due on your taxes. An extension extends the time you have to file a return, it does NOT extend the deadline to pay the taxes due. If you’re not sure, make a reasonable estimate. Your CPA can help you with this based on the documents you do have as well as what your tax situation was last year.