{"id":22238,"date":"2026-02-27T09:51:20","date_gmt":"2026-02-27T09:51:20","guid":{"rendered":"https:\/\/borrowingnexus.com\/?p=22238"},"modified":"2026-02-27T09:51:20","modified_gmt":"2026-02-27T09:51:20","slug":"i-learned-these-tax-extension-lessons-the-hard-way","status":"publish","type":"post","link":"https:\/\/borrowingnexus.com\/?p=22238","title":{"rendered":"I Learned These Tax Extension Lessons The Hard Way"},"content":{"rendered":"
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Last year, on the day before Tax Day, my mom was scheduled to fly into Philadelphia International Airport to stay with me for a while. She didn\u2019t make it. While at the airport in North Carolina, she fell and broke her leg\u2014pretty badly, as it turned out. <\/p>\n

The day of her fall was kind of a blur, to be honest. She was initially cleared by Urgent Care, but when she was unable to walk (or move, really), my dad called emergency services. It turned out she required hospitalization, surgery, and months of rehab. Of course, I was trying to sort much of this out via email and phone calls.<\/p>\n

In the midst of the chaos, I filed for an extension on my taxes (as I always do) and moved on. As it turned out, I skipped a step, and it caught up with me a few months later. <\/p>\n

Even though I\u2019ve been working in tax for years, I learned (or relearned) a few lessons that day. I hope you\u2019ll find them useful, too.<\/p>\n

Start Early <\/h2>\n

Chances are you haven\u2019t yet filed your tax return. As of two weeks ago, only 32,175,000 taxpayers had filed their returns\u2014that\u2019s less than 20% of the 164 million returns the IRS expects to receive by April 15.<\/p>\n

But just because you haven\u2019t yet filed doesn\u2019t mean you should delay thinking about it. If you\u2019re working with a preparer, be sure to submit your documents early (many preparers now offer online portals and client organizers so you can scan and upload your documents without leaving the comfort of your home). If you\u2019re preparing your own return, decide in advance how you plan to file, including which software you\u2019ll use (there are some free options, too). Either way, take an inventory of your documents now so you can chase down any loose ends instead of waiting until the last minute. <\/p>\n

You should also consider an extension. The best time to do that? Now. About 10 million taxpayers traditionally file extensions, but that number appears to be climbing. Last year, the IRS received 140,633,000 individual tax returns as of April 18, 2025\u2014that\u2019s about 25 million fewer than the 165,824,000 returns it received by year-end. While not all returns were filed on extension, most likely were.<\/p>\n

It\u2019s true that some taxpayers who file extensions do so because they waited until the last minute. But taxpayers may have all kinds of reasons for putting off filing a tax return until a few months later\u2014and the best part? The IRS doesn\u2019t care why you want an extension. So long as you follow the rules (more on that in a minute), the extension is automatically granted.<\/p>\n

Don\u2019t Be Afraid To Ask For An Extension <\/h2>\n

Filing for an extension gives you time to confirm you\u2019ve received all your forms. While employers are supposed to provide employees with Forms W-2 and other wage statements by February 2, other forms\u2014such as Forms 1042-S, 1095-C, and some Forms 5498\u2014may not appear until much later. <\/p>\n

There may be other reasons a form hasn\u2019t reached your inbox yet\u2014you could be a beneficiary of a trust or estate, or a shareholder or partner in a pass-through entity, which means the associated Schedules K-1 aren\u2019t yet available. (That\u2019s why business owners like me regularly file for an extension.)<\/p>\n

You might be funding an IRA\u2014you have until Tax Day to do so\u2014and you need to include that information on your individual tax return.<\/p>\n

You may need time to take another look at your tax return. So often, we\u2019re rushing from one task to another\u2014but taking the time to review your return and check for omissions or errors is smart. This is true even if your returns are prepared by a paid professional.<\/p>\n

Or maybe your return is simply more complicated this year than in previous years. Not sure if you\u2019ve included all those crypto transactions? Sold your house and aren\u2019t sure about the basis? Forgot you inherited an IRA? So many things can change from year to year. Taking the time to run through the list of what you should have included can help avoid a nasty penalty later.<\/p>\n

What if you want to discuss your returns with your tax preparer? Most professionals won\u2019t have time for a lengthy sit-down around Tax Day. Taking time after Tax Day to review returns for completeness and ask questions about any items you don\u2019t understand can pay off down the line.<\/p>\n

Or what if you\u2019re just not ready? Maybe your receipts are still in boxes. Maybe you haven\u2019t been well. Maybe your kid is graduating from high school, and you\u2019ve been overwhelmed. Sometimes, life gets in the way. The IRS understands that you may need more time to file. But whatever your reason for not being ready to file, it\u2019s yours. Again, you don\u2019t need to tell anyone\u2014even the IRS\u2014why you\u2019re requesting the extension. It\u2019s a no-questions-asked form, and the extension is granted automatically if you follow the rules.<\/p>\n

To file for an extension, you can:<\/p>\n