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.
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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.