Filing An Extension - Do You Need It? What Does It Mean?

By Alice Horton-Barr, CEO, Honest Abe's Taxes, Inc.

Tax returns are “due April 18”. What does this really mean? It means that the return, the report and the taxes are due April 18, but you can file an extension which gives you until October 15 to file the report, however the taxes are due April 18. If you file an extension and owe money you must pay it with the extension or you will still pay late payment fees and interest. The penalty and interest you save are for the late filing fee.

If you have a refund due, you really do not have to file an extension. You have up to three years to file your return to get your refund. So for 2021 taxes, you have until April 15, 2025 to file and get your money back.

Now, the exception the rule, Berkheimer local taxes, you MUST file an extension to avoid the $25.00 late filing fee. And, they require proof of an accepted extension to the Federal or PA return.

Identity theft this year is causing a big hiccup in extensions for 2021. Since ID Theft is rampant extensions for Honest Abe customers will be

filed April 12. This will give us ample time to file the extension, and if your extension is rejected due to ID theft saying a return is already filed, we will have time to deal with the problem. Also, for our annual tax customers, who we see only at tax time, due to volume and past experience we are no longer doing “courtesy extensions”. If you need an extension, you must contact us and confirm you need an extension.

New customers are welcome that need an extension to file. Again, we ask that you come in before April 12, there will be a fee of $40, which will be applied to your tax preparation.

Call us today, 570-668-8297, or come see us at 259 Claremont Avenue, Hometown, Tamaqua, PA. We have a full staff to serve you Monday through Saturday.