The Tax Cuts and Jobs Act: Extensions

As the first tax deadline of the year quickly approaches, we are still awaiting IRS guidance to clarify various tax law changes that were passed under the Tax Cuts and Jobs Act in December 2017.

We are recommending all businesses and business owners file an extension of time to file for the 3/15/2019 and 4/15/2019 deadlines.

Why an extension may be beneficial for your business:

  1. Filing an extension does not mean you have to wait until September to file your company return. It simply opens the filing window for an additional six months.
  2. In most cases, filing an extension will allow us to file a superseded return before the extended deadline, rather than an amended return, to make changes to previously filed business returns if the IRS releases additional guidance that changes how one or more of the tax law changes are interpreted.
  3. When electronically filing an extended business tax return, the IRS generally allows the tax preparer to replace previously filed returns with updated tax returns, up to the extended due date. This is called a Superseded Return.    

We want to make you aware that if the IRS does issue guidance that changes how any of the tax law changes are interpreted, an amended or superseded return may be required for your business to be in compliance. Amended and superseded tax returns are not typically included in our standard engagement letters and will be billable at our discounted hourly rates. We are happy to file any business and/or business owner tax returns prior to additional guidance being released; however, this could lead to having to file an amended or superseded return which could result in additional chargeable services at discounted hourly rates.

Please note that both State and Federal extensions only extend the time to file a return, they do not extend the time to pay any tax due. Interest will accrue on any unpaid balance due and penalties could be assessed.

Prior to any filing or extending decisions, please feel free to contact our office direct to discuss your return(s) for yourself, your family, and any businesses.