About Us > FAQs (Frequently Asked Questions)

• What is an extension?
• Why is my tax return on extension?
• Will I have to pay a penalty if my tax return is on extension?
• How long is the extension good for?
• Will filing an extension raise a red flag with the IRS?
• I have prepared my tax return. Can your firm review it?
• How much will it cost?
• I have received a notice from the State/IRS. What should I do?
• What important papers should I keep...and where?

What is an extension?

An extension is additional time to file your federal and (if applicable) state income tax returns. Keep in mind, that this is an extension of time to FILE your tax return. If you owe taxes, you will accrue penalties and interest.

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Why is my tax return on extension?

Usually, because of the extremely heavy work load between February 1 and April 15, we are unable to complete all of the returns that come to us by April 15. By April 1 we automatically prepare extensions for all uncompleted returns and send them to IRS and the appropriate state tax departments. Even if you haven’t sent us your tax preparation documents we will prepare extensions if we had prepared tax returns for the prior year.

In many cases we are unable to complete your return by April 15 because we are waiting for additional information such as Forms K-1 from Partnerships, corrected Forms 1099 from brokerage firms, and cost/basis information related to the sale of securities.

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Will I have to pay a penalty if my tax return is on extension?

Probably. However the most onerous penalty, for late filing, will not be imposed if a timely extension has been filed. You will pay a penalty for paying late-any payment made after April 15-and you will pay interest on your tax liability from April 15 until the date of payment.

If you think you will owe taxes with your filing a payment should be made with the extension.

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How long is the extension good for?

The first extension, which is automatically granted, is good until August 15. If a second extension is needed it must be approved by IRS and usually by the appropriate state entity.

If it is approved the extension is good until October 15.

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Will filing an extension raise a red flag with the IRS?

No. Extensions are viewed as routine by IRS and state agencies.

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I have prepared my tax return. Can your firm review it?

We would be glad to review your return. However, to do this, we will charge a preparation fee.
In order for us to review your tax returns, we have to go through the preparation process.

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How much will it cost?

Because everyone's tax situation is different, it is impossible to quote a fee over by e-mail or over the phone. We offer a complimentary 1 hour consultation to meet with you. We will look over your tax information and quote you a fee.

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I have received a notice from the State/IRS. What should I do?

Inform us as soon as you receive the notice. We will be happy to handle any issues. If you choose to handle an issue with the State/IRS by yourself, please remember to be courteous
to the agent that you are speaking to.

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