The clock is ticking for taxpayers who filed for an extension

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It’s cram time for entrepreneurs and other taxpayers with complicated income tax returns.

That’s because the Oct. 15 deadline for taxpayers who filed for an extension with the IRS is right around the corner.

Though these same taxpayers were able to get more time to work on their 2018 tax returns, they still needed to pay any taxes owed by April 15.

If you’re on track to miss the Oct. 15 deadline, prepare to pay a 5% “failure to file” penalty, so try not to wait until the last minute.

“You would think most people going out to Oct. 15 would be better prepared, but no — they still get it in very close to the deadline,” said David Oransky, a CPA with Laminar Wealth in Chesterfield, Missouri.

The 2018 tax season was a complicated one for accountants and filers.

It was the first time taxpayers submitted returns under the Tax Cuts and Jobs Act. The new law nearly doubled the standard deduction, eliminated personal exemptions and put new limits on certain itemized deductions.

A new 20% tax break for entrepreneurs — the qualified business income deduction — also came with its share of complexities, which led accountants to encourage those filers to ask for more time.

Here’s what taxpayers should know if they’re about to hit that extension deadline…Read more>>