Why Should You File for a Tax Extension?

Many taxpayers think that tax extensions are only for people or businesses who just don't have their act together. Not so! It's quick and easy to file for one, and the IRS doesn't require you to give a good reason (or any reason at all). You never know when some extra time might come in handy for a project this important. Here are a few reasons to consider filing a tax extension this year.

You'll be able to take your time making sure everything's in order. Why rush to get your taxes done in March or April when you don't have to? If you file for a tax extension, you'll get an extra six months to make sure that you've filled out each form correctly--and that you've taken every deduction you're entitled to. More and more taxpayers and businesses choose to file tax extensions routinely each year, just to make sure they have the time they need.
You'll get more attention from your accountant. No one wants to be on the bottom of their accountant's call-back list on April 14. By filing your taxes in the fall, you'll get the personal attention you're paying for--and your accountant won't be living on espresso and No-Doz. You don't even have to bother your accountant in April to file your tax extension--you can file online yourself, in a matter of minutes.
You won't have to put up with the craziness of tax time. Don't spend your afternoons at the post office or your accountant's waiting room. You can only benefit from not doing your taxes at the same time everyone else is doing theirs.
If you wait, you might benefit from changes in the tax code. Tax laws change all the time--and with President Obama's stimulus plan shaping up, there are bound to be some pretty big adjustments this year. Even if a new tax plan passes before April 15, you may still need the extra time to make sure you know which changes will affect you.
It may lower your chances of an audit. Many accountants and tax experts believe that, counter-intuitively, filing your taxes at a different time than everyone else makes you less likely to be audited. Why? Well, it's no secret that IRS officers must meet a certain quota of audits each year--but they're likely to meet that quota well before the fall deadline for tax extensions.
The IRS doesn't need a reason, so why should you? You don't have to come up with a compelling reason to convince the IRS to give you an extension--they grant tax extensions automatically to anyone who correctly fills out the forms. So file IRS Form 7004 (business extensions) by March 15 and/or Form 4868 (individual extensions) by April 15, and give yourself a breather this year!