4 Circumstances When You Want to Delay Filing Your Income Taxes

Tax Day on the Calendar

Life happens. The IRS knows this. Whether it’s the fault of someone else or a natural disaster, there are valid reasons you should delay filing your income tax returns. In today’s blog from LongSchaefer, trusted business advisors and Cincinnati CPAs, we will explain what those reasons are and how to handle them best. 

Related Post: What To Do When Your Taxes Are Late? 

1. Death

If you have experienced a recent death in the family, the IRS will grant you an extension without penalty to allow time for grieving, burial, and estate resolution. You may need to provide a death certificate for proof of the delay

2. Destruction of Records 

There can be many reasons tax records are destroyed. Unfortunately, they are often due to natural disasters, fire, and casualty. If your files have been destroyed, report this to the IRS. They can grant an extension without a penalty until you can obtain new records. This grant is referred to as Penalty Relief Due to Reasonable Cause. The IRS may require you to provide proof from your insurance company and police records of the destruction and its validity.

3. Missing Information

Sometimes employers or institutions do not provide you with the accurate information needed to complete your tax return. Schedule K-1 Form 1099 will often arrive too late for you to complete a return by the filing deadline.

If you have a form, but it shows inaccurate information, like incorrect gross annual income, you will need to have that corrected before including it on your return. Providing false information can cost you money and expose you to penalties levied by the IRS.

In either case, you will need to file an extension to gather the missing or corrected information. You could face penalties by not filing an extension. 

4. Active Military Service 

If you’re engaged in active military duty overseas, you will not be required to submit a timely tax return. The United States Department of Defense offers all names and Social Security numbers of officers and servicemembers to the IRS. 

Tax Time at LongSchaefer, Trusted Business Advisors

If you think you will miss the tax filing deadline, contact LongSchaefer today to discuss your options. They can file an extension for you, allowing you the extra time you need to prepare appropriately. Contact us today to discuss how we can help and become your trusted business advisor. 

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May 2020 COVID-19 Update

In order to comply with the Ohio Health Department Order & CDC social distancing recommendations, our offices are closed until further notice. Rest assured that our established protocols and available technology will allow us to provide the same level of service and quality you expect from LongSchaefer during this time.

The SBA has announced details of how it’s helping small businesses through the Coronavirus outbreak. The IRS is sending payments to families affected by this crisis. 

Please click on our Coronavirus information pages for more information.