Tax Season Process & Extension Policy
Our firm utilizes a proactive approach to managing your tax situation throughout the year, with the goal of improving accuracy, reducing stress, and providing a more consistent level of service.
Our Approach
We file extensions for all clients in February using prior year information and reasonable assumptions (generally within ±10%), unless we are informed of significant changes.
This approach allows for more thoughtful preparation of your return and reduces the need for rushed estimates during peak filing deadlines.
Understanding Extensions
An extension provides additional time to file your tax return—it does not extend the time to pay any taxes owed.
Key points:
- Extensions are filed automatically for all clients
- There is no cost to file an extension (from our firm or taxing authorities)
- Filing an extension does not increase audit risk
- Extensions are commonly used as part of a well-managed tax process
Benefits of extending:
- More time to gather complete and accurate information
- Reduced risk of errors or missing items
- Additional time for tax planning opportunities
- Ability to incorporate late or corrected tax documents (K-1s, 1099s, etc.)
- Flexibility to address situations involving amended or multi-year tax changes
Estimated Tax Payments
If estimated payments are appropriate, we will calculate them and provide reminders. We expect clients to make these payments.
Estimated payments are not mandatory; however, insufficient payments may result in interest and penalties.
Interest and penalties are tied to the general interest rate environment and change with the overall market interest rates.
If you prefer, you may make a single payment with your extension equal to the total all the quarterly estimated tax payments. This option will likely result in interest being charged for underpayment of estimated tax.
Your Responsibility
Our estimates are based on prior year information unless you tell us otherwise.
It is important that you notify us if your situation changes significantly (generally more than ±10%). Examples include:
- A significant increase or decrease in income
- Sale of a business, real estate, or investments
- Starting or closing a business
- Large bonuses, stock compensation, or one-time income
- Retirement or job change
- Changes in filing status (marriage, divorce)
- Major changes in deductions or credits
*If we are not informed of changes or if estimated payments are not made, we cannot be responsible for any resulting interest or penalties.
Our Goal
This process is designed to keep you in a good position throughout the year and make tax season more manageable for everyone.
If you have questions or expect changes in your situation, please contact us.