New Tax Law - Is It In My Best Interest To Consider An Extension?

New Tax Law - Is It In My Best Interest To Consider An Extension?

As tax season is now in full swing, the tax team at Martin Starnes & Associates, CPAs, P.A. (MSA) is preparing for its most ambitious season in years. As one national expert described it, 'It is most likely going to be the most difficult tax season since the 1986 Tax Act, maybe worse.' (See the article in the link below regarding the impact this new law and other recent events have had on the Internal Revenue Service (IRS).) Although MSA employees have spent many hours in training and reading, researching and brainstorming with other practitioners, there is still so much unknown about the new tax law and its benefits and pitfalls. The IRS is still working on regulations to help us understand what the laws mean. We do not want to miss any opportunity for our clients. In order to obtain the best tax advice, it may be worth considering an extension of time to file your return in order to maximize the potential windfall this and the prior tax laws may afford you. 

Here is a limited list of taxpayers that may fall into this category:

To take advantage of these benefits, it is going to require additional time to accurately research and complete additional forms that are required for these potential tax savings. An extension allows your tax preparer time to adequately consider all planning angles. In an inevitable rush to get tax returns finished by the April deadline, taxpayers and accountants alike can make mistakes when they are rushing. An extension gives you and your accountant the extra time needed to go over the return and make sure everything is complete and accurate before submitting it. 

There are also several schools of thought indicating extensions may have a lesser risk of audit because the percentage of returns selected for audit has already been met by the IRS. There is no solid data that we are aware of that supports this theory; however, the IRS begins to fill its quota fairly soon after April 15th

Let us know if you wish to take advantage of these opportunities. We will advise you as to your best course of action, but we are diligently doing our best to give you the best advice in the marketplace. 

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730 13th Avenue Drive, SE
Hickory, NC 28602
Tel: 828.327.2727
Fax: 828.328.2324
13 South Center Street
Taylorsville, NC 28681
Tel: 828.632.9025
Fax: 828.632.9085

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