Tax Extension FAQs

Can anyone file for an extension?

Yes, anyone is eligible to apply for an automatic extension of time to file.  The extension is good for six (6) months, so generally you are granted until October 15th to complete and file your return.

Does getting an extension also give me more time to pay my taxes?

No, it’s important to understand that an extension grants you more time to file, but not more time to pay your taxes.  When you extend, you are required to estimate your potential tax liability and, if necessary, make an estimated payment by or before the original April 15th filing deadline.  Most payments can be made electronically through the IRS and/or your state or local governing jurisdiction website(s).  Mailed payments should be postmarked by or before the original filing deadline of your returns and it is recommended you send these with tracking or signature verification (such as certified mail) so you have record of timely payment.      

What happens if I don’t pay my full tax liability by the April 15th deadline? 

If you fail to pay your total tax liability by the original deadline, and then you file your return and pay your taxes after that date, you may incur penalties and interest charges for failure to timely pay your taxes to the IRS, state of residence, and potentially any local tax jurisdictions depending on where you live.  Penalties and interest will continue accruing until your tax liability is paid in full.  You can visit the IRS website regard failure to pay penalties here.   

Can Collective help me estimate my tax liability?

If you are a Collective client, we can review tax documents you’ve provided us ahead of time and suggest any recommended payments to make prior to the deadline.  Please note that these are estimates based on limited information and your actual tax results may vary when we complete your return(s).  Our recommendations should not be construed as guarantees of results and you, the taxpayer, are ultimately responsible for timely filing and paying your taxes.     

What information does Collective need and how do I provide it so you can estimate my tax liability?

Income information is the most critical element of ensuring we don’t underestimate your tax liability.  This helpful article highlights the most common types of documentation people receive about a variety of income and deduction items to help you understand what might apply to your situation.  
While email attachment is very convenient, it is highly unsecure. We value protecting your sensitive information, which you can safely upload to us using our secure upload link.
Will I still be on extension if I choose not to make any payments by the deadline?
Yes, Collective will electronically file for an extension of time to file on your behalf whether you make these suggested estimated payments or not. 
Does extending my return make me a higher audit target?
Filing an extension is not a determining factor used as any kind of stand alone red flag for further scrutiny.  In fact, extensions are very common – for example, approximately 19 million extensions were filed for the 2022 tax year.   

Does Collective charge to process an extension?

There is no additional charge to existing tax preparation clients to file for an extension or estimate your tax liability. 

How will Collective handle my return after the April 15th deadline?

We will continue working through our tax prep queue in the same manner as we have been since the beginning of the year.  We want to complete all filings as soon as possible and will diligently strive to complete your return without any unnecessary delay.  Please continue to be on the lookout for communication from us for additional information we may need in order to complete your return.
Anything else I should know?
We want to make this process as smooth as possible for you! If you need additional clarification or extra help at any point, please don’t hesitate to tell us so we can serve you better.