Call Us 24/7

480-372-2543

Send Us Mail

theresa@conciergeacct.com

Blog

Tax Extensions – What you need to know.

Obtaining a 6-month extension to file is relatively easy and there are legitimate reasons for doing so; however, there are also a few downsides.

WHAT IS AN EXTENSION OF TIME TO FILE? An extension of time to file is a formal way to request additional time from the IRS to file your tax return, which is due on April 15.

Taxpayers should be aware that an extension of time to file your return does not grant you any extension of time to pay your taxes.

WHAT ARE THE PROS AND CONS OF FILING AN EXTENSION?

Pros

  1. You can avoid a late-filing penalty if you file an extension. The late filing penalty is equal to 5 percent per month on any tax due plus a late payment penalty of half a percent per month.
  2. You can also avoid the failure to file penalty if you file an extension.
  3. You are able to file a more accurate–and complete–tax return.
  4. If your tax return is complicated then your tax preparer or accountant will have more time available to work on your return
  5. If you are self-employed, you’ll have extra time to fund a retirement plan.
  6. Filing an extension preserves your ability to receive a tax refund when you file past the extension due date. Filers have three years from the date of the original due date (e.g., April 15, 2019) to claim a tax refund.

Cons

  1. If you are expecting a refund, you’ll have to wait longer than you would if you filed on time.
  2. Extra time to file is not extra time to pay.
  3. When you request an extension you will need to estimate your tax due for the year based on information available at the time you file the extension. If you disregard this, you may owe late filing penalties as well.
  4. Dealing with your tax return won’t be any easier 6 months from now.

If you have any further questions or need our assistance with obtaining an extension please feel free to contact us.

Please call or email us for more information and questions.

Leave a Reply

Your email address will not be published. Required fields are marked *

Jocelyn Sihathep (Jo1)

Office Manager

We have a Sun Devil in the house! We are honored to add to our team, Jo. She is a graduate of Arizona State University (Fear the Fork) and is looking to broaden her knowledge and understanding of business and accounting.

She is the engine of our fine-tuned machine. Her “can do” attitude, commitment to customer service and outstanding organization skills allows us to focus on what matters most, our clients. She is amazing with technology and strives for excellence. She embraces the entrepreneurial spirit and is a great asset to our team.

Jocelyn Weatherley (Jo2)

Accountant

Jo was previously an accountant for a $60M company and their 13 subsidiaries. She is in charge of our accounting and bookkeeping department and serves our clients on their time schedule. Whether it is weekly, monthly or quarterly she helps provide reliable, useful and accurate information to our clients on their terms.

Jo performs full accrual accounting and is responsible for reconciling all accounts, journal entries, month end closing procedures and preparation of internal financial statements and analytics. She also assists in the preparation of sales and payroll tax returns. She holds a wide range of knowledge, from QuickBooks to travel (she spent most of her life in the UK), she’s your girl. She is excited to join the CCA team and ready to conquer tax season head on!

Dixie Cary

CPA and Tax Manager

Dixie is a Minnesota CPA and experienced accountant. She has over 25 years of accounting in both audit and tax, but her passion is tax. After years in the cold, she decided to leave the mid west and find a new home in Sunny Arizona. We are so happy that Dixie has joined our team.

Dixie leads and manages our entire tax department. She assists and leads a team through our busiest times while delivering quality, complete and accurate tax services for our clients. She is proficient in preparation, planning, and education of federal and state income taxes for individuals, businesses, estates, trusts, and exempt organizations.

Theresa Elaine Valade

CPA and Managing Partner
Theresa has over 27 years of experience in tax, audit and consulting. She was with the International CPA Firm of Arthur Anderson in Phoenix and San Francisco. She most recently was a partner with Moffitt & Company, P.C. Her areas of specialization are business consulting and advisory, audits, income tax planning and preparation, and IRS audit representation. Her industries of specialization are nonprofits, real estate, hospitality, franchises, mortgage banking and brokering, title insurance, escrow, health, and beauty.
One of Theresa’s biggest honors is being named the 2020 CPA firm of the year for her commitment and service to her clients during the challenges imposed by the COVID-19 pandemic. Putting passion and personalization at the forefront Theresa has led her firm to excellence by not only providing measurable results for clients but making them feel well taken care of during times of great uncertainty.
Theresa is also a member of the prestigious, Arizona Society of CPAs, ASCPA, 100% Membership Club. It is an honor to be part of this club that exhibit’s a high level of commitment to the Arizona Society of CPAs. We are privileged to be able to convey to our clients, staff, and colleagues of Theresa’s significant commitment to the CPA profession.