I’m a CPA: When Filing an Extension Helps — and When It Hurts

Group 1 - The tax filing season has officially started, with a deadline of April 15, and the average tax refund is expected to increase by $1,000 or more [1] - Taxpayers are encouraged to file on time to ensure timely receipt of refunds, although some may face challenges in gathering necessary documents [1] - The IRS offers payment plans for those who cannot pay their taxes by the deadline, allowing for short-term and long-term payment options [6] Group 2 - Filing an extension can be beneficial if taxpayers have not gathered all necessary documents or need more time to prepare their returns, providing an additional six months to file [3] - Taxpayers may also need to file an extension if they are unavailable due to major life changes or are out of town [4] - Individuals affected by disasters in federally declared areas do not need to file for an extension, but should verify their address against IRS resources [5]