Issue link: https://read.dmtmag.com/i/119598
EQUINOX BUSINESS SOLUTIONS By: Scott Christensen, Vice President of Tax Services at EQUINOX Owner-Operator Solutions The Leader in Business Services for Transportation Help! I need More Time To File My Taxes, Tax Filing Extensions Explained This just in: the tax code is immensely complicated. According to the IRS, the most serious problem facing taxpayers is the complexity of the tax code. Approximately 7.6 billion hours are spent by businesses and individuals each year on tax compliance - a workload that could keep 3.8 million full-time workers busy by the IRS' own estimates. And, with an average of over one change to the code per day, the number of pages in the tax code has grown from 400 in 1913 to around 75,000 today. Now, throw your long hours as an OTR trucker into the mix and the potential to miss the filing deadline is very real. However, you can file an extension and avoid penalties. What is a tax filing extension? How can you go about doing it? Let's take a look at filing extensions in closer detail. Filing Extensions Explained By filing an extension, you'll have an extra six months to file your tax return. So, if January-April is your busiest time of year or you otherwise have difficulty filing by the normal deadline, you can wait until things slow down before tackling the tax beast. However, a filing extension only extends the time to file your taxes, not pay them. Accord- ing to Steve Christiansen, Director of Tax Services at EQUINOX Owner-Operator Solutions, "The IRS and the state expect any tax owed to be paid with the extension. A penalty for non-payment of tax will be assessed by both the IRS and the state for tax payments made after April 15. If the extension is not properly filed by April 15, the IRS and state will assess a late-filing penalty because the return is filed after the deadline." Still, it is best to file an extension, even if you end up paying the wrong amount, to avoid a late filing fee (separate from a late payment fee). Note that a federal extension is typically sufficient to cover an extension on your state income taxes, as well. That said, if you neglect to file an extension with Uncle Sam or your state doesn't accept the federal filing extension, your state may penalize you. Also, as with the IRS, your state will want taxes to be / OWNER OPERATOR/ APRIL 2013 / / 18 OO 0413 edit.indd 18 3/19/13 2:19 PM