Tax Season Process & Extension Policy
Our firm utilizes a proactive approach to managing your tax situation throughout the year, with the goal of improving accuracy, reducing stress, and providing a more consistent level of service.
Our Approach
Unless we are informed of specific changes, we utilize prior year information and reasonable assumptions (generally within ±10%) to prepare extensions for all clients (business and individual) in February. We also utilize estimated tax payments and continuous communication throughout the year to help ensure that your tax liability is satisfied prior to the due date of your tax return.
With the extensions in place, we work at a diligent (but not fanatic) pace to complete all returns in a timely manner. Of course, we are always sensitive to filing needs aside from the due date and will accomodate those as much as possible.
Our Goal
We want to create a more manageable (even enjoyable) tax season for everyone and contiue to prioritize the quality of our returns over abitrary government deadlines
This approach allows for more thoughtful preparation of your returns and eliminates much of the stress associated with the traditional tax season deadlines.
This process is designed to keep you in a good position throughout the year and make tax season more manageable (even enjoyable) for everyone.
Understanding Extensions
An extension provides additional time to file your tax return. An extension does not extend the time to pay any taxes owed. This is why we rely on reasonable assumptions to prepare your extension. It is also why we rely on you to communicate with us if your tax situation does not fit within those general assumption (see above).
Key points:
- We prepare and file your extensions automatically
- There is generally no signature needed to file your extensions
- The extension provides an additional six months to submit your returns (September 15th for businesses and October 15th for individuals)
- There is no cost to file an extension (from our firm or taxing authorities)
- Filing an extension does not increase audit risk
- Extensions are commonly used as part of a well-managed tax process
Benefits of extending:
- More time to gather complete and accurate information
- Reduced risk of errors or missing items
- Additional time for tax planning opportunities
- Ability to incorporate late or corrected tax documents (K-1s, 1099s, etc.)
- Flexibility to address situations involving amended or multi-year tax changes
Estimated Tax Payments
If estimated payments are appropriate, we will calculate them and provide reminders. We expect clients to make these payments or let us know if they have chosen not to make them.
Estimated payments are not mandatory; however, insufficient payments may result in interest and penalties.
Interest and penalties are tied to the general interest rate environment and change with the overall market interest rates.
If you prefer, you may make a single payment with your extension equal to the total of all the quarterly estimated tax payments. This option will likely result in interest being charged for underpayment of estimated tax.
Your Responsibility
Our estimates are based on prior year information unless you tell us otherwise.
It is important that you notify us if your situation changes significantly (generally more than ±10%). Examples include:
- A significant increase or decrease in income
- Sale of a business, real estate, or investments
- Starting or closing a business
- Large bonuses, stock compensation, or one-time income
- Retirement or job change
- Changes in filing status (marriage, divorce)
- Major changes in deductions or credits
*If we are not informed of changes or if estimated payments are not made, we cannot be responsible for any resulting interest or penalties.
If you have questions or expect changes in your situation, please contact us.