Understanding Tax Extensions: What You Need to Know

Understanding Tax Extensions: What You Need to Know

When Should I File a Tax Extension?

A tax extension enables taxpayers some extra time past the April 15th deadline to submit their tax returns. Typically, by filing a tax extension you will have six additional months to file your tax returns. Depending on your tax situation you might be seeking an extension because you are missing documents, such as K-1s, Corrected W-2s or 1099s. Alternatively, you may still need to finalize complex business returns before filing your personal return. As a client of PBG Advisors we will take care of your tax extension filing for you. We will need you to sign an Extension Agreement which gives us direction on how to prepare your extension.

Here are your two primary options:

tax extension filing

Option 1: Zero Due

The first option is “Zero Due” with Extension. Select this option if you do not believe you will owe any additional taxes. The IRS does not require a reason to extend your tax return. Once we receive your signed Extension Form, and your signed proposal, we will handle all necessary paperwork for your extension.

Option 2: Tax Due

The second option is “Tax Due” with Extension. This may include both Federal & State payments. Filing an extension does not grant an extension for paying the taxes owed. If you typically owe you will want to make extension payments by April 15th. Paying taxes on time helps you avoid any penalties or interest charges. Failing to pay at least 90% of the total taxes owed could result in penalties and interest. If you think you will owe taxes with your extensions, please contact us well in advance of the April 15 deadline so we can assist you in preparing the necessary extension coupons for you to send with your payments.

Sometimes in life we all need a little extra time, whether you need more time to collect documents, review your finances, talk to a professional, filing an extension can be a valuable tool! For more information or to file your own Extension please follow the IRS link below:


If you have any questions regarding business or personal taxes, please reach out to us at 970-242-3320. Our team is ready to make your life easier.