Benefits to filing an extension in the final hours of Tax Day
PITTSBURGH (KDKA) - It's the final hours of Tax Day, and it could be time to file for an extension.
Eric Wortzman owns North Hills Tax Associates, and he's used to the annual Tax Day rush.
"I filed a lot of extensions up through midnight last night, and through midnight tonight, I'll be on my computer filing extensions," Wortzman said. "I would say about 25% come in over the last week or two."
In just the last eight weeks, he's done about 700 tax returns.
"We expect it. After 24 years, if I look at my client list, I know who's in in February, and I know who's in on April 1."
So, on this Tax Day, he's got some advice.
"File as early as you can and pay as early as you can. Those are the best ways to keep yourself out of trouble."
Out of trouble, like paying a penalty for filing late or paying a penalty for failing to pay. Wortzman said filing for an extension on Monday is a safe option to get you through Oct. 15.
However, there is a key part for everyone to remember before filing the extension.
"An extension is an extension of time to file your paperwork. It is not an extension of time to pay."
If you don't know how much you might owe, consider overpaying.
"When you make that payment, if you overguessed, you'll be due a refund on the final rerun. If you underguessed, you'll still owe, but you won't owe as much as you originally would've owed, so your late payment penalty will be a lot less than if you didn't pay at all," Wortzman explained.
If you don't have the money to pay, call the IRS and get a payment plan.
"They like people that are proactive, and depending on your balance due, they may let you call the shots as to what the payment is going to be."
You can file your taxes safely and quickly online at IRS.gov, but if you're mailing your tax return, get it postmarked and hold onto the receipt.
"In 24 years of doing this, I have sent a lot of copies of this to the IRS, and said, 'No, we timely filed. You may not have timely opened it IRS, but we timely filed,'" Wortzman added.
Life is busy, so get organized early.
Don't wait for papers to come in the mail, beware of stolen checks, use direct deposit to get your return, and don't hesitate to seek professional help to possibly avoid mistakes.
"File as soon as possible. I have clients coming in on April 16, [and] I have clients coming in on April 17," said Wortzman.