Tax deadline approaching

Published: Apr. 18, 2023 at 6:41 PM CDT
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SHERMAN, Texas (KXII) - “This year we had more last minute than ever, not having to file our taxes to midnight tonight on the 18th. But even if we can’t file the taxes, we should certainly file an extension,” North Texas CPA, Bill Dendy said.

If you’re stressed about getting your taxes filed on time, Dendy says filing a tax extension is the way to go.

“Extension is until October 16th to do our taxes. So, we get six more months automatic, without any rationale or reason that you have to give for doing it.”

Dendy says filing for an extension is free, and as simple as going online to the IRS website.

“They partnered with a lot of commercial entities that will, for free, get your extension done for you. All you do is fill out some basic information and send in that extension,” Dendy explained.

However, if you think you may owe taxes, Dendy says the extension to file, is not an extension to pay your taxes.

“Now, if you don’t have the money to pay, go ahead and file the extension anyway. Because the failure to file penalty is 5% per month, you’re late on the taxes that are outstanding up to 25%, and that’s humongous,” Dendy continued.

If you do have the money to pay the taxes, Dendy says the next steps would be like playing a game of the price is right, but in reverse.

“You want to get as close as you can to the actual retail price but go over by a little bit. You want to go over by a little bit so that you get a little bit of money back. you don’t want to have any missing taxes at this point,” Dendy said.

He explained that if you don’t know exactly how much you owe, it’s better to overestimate than to underestimate.