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As tax deadline looms, experts recommend filing for an extension

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Posted at 9:04 AM, Apr 12, 2022
and last updated 2022-04-12 13:16:57-04

The IRS' tax deadline is next Monday and if you don't plan to file your taxes on time, you could be penalized.

“There is an option to extend your return before the deadline approaches. So if you miss April 18, you can't file an extension after April 18, but you can file an extension right now until April 18 to ensure that you have time to file," said Branden Welshons, managing partner at Better Business Financial Services.

H&R Block in San Luis Obispo says they always see a spike in appointments the week before the deadline and are already almost completely booked. Employees say they are busier this week than they have been for the past month.

“So what happens is the penalty clock and the interest clock starts ticking as soon as April 18 passes, so it is it is essentially compound interest and penalty. So the later you are, the higher the penalty and interest is going to be,” Welshons said.

He added that many tax payers received forms later than they anticipated, and others had to make amendments to their returns. This year, tax preparers also experienced a compressed tax season. Updates and payments can be made until the Monday deadline.

“If it's after and you owe money because of an amended return, there will be way late penalty fees," Welshons said.

People can file for an extension that would happen through Oct. 17. There are also tax payment plans that can be requested online.