Don't Become Confused and Frustrated Over Tax Extensions and the Affordable Care Act's Filing Requirements
Filing a tax extension definitely is within the rights of U.S. citizens needing an additional six months to prepare their returns. Taxpayers confused about how to reconcile advanced tax credits under the Affordable Care Act may find that requesting additional time to file makes sense. No one wishes to botch the forms and then deal with various problems as a result. Unfortunately, some panic may set in after an extension is filed, advanced tax care credits are taken, and an unexpected letter arrives ahead of the October 15 extension due date requesting the return. While panicking isn't necessary, taking deliberate action to address the letter is.
Address the Letter
The purpose of the letter will be spelled out clearly in the content: if a tax return is not filed on time, the ability to receive advance tax credits the next year may be jeopardized. While the content of the letter is clear, anxiety over receiving a notice often causes confusion. A lack of experience with tax matters also may lead many to assume the letter indicates an audit. Avoid jumping to any assumptions about the content of the letter. Read the entire letter and do not skim any parts of it. Follow all suggestions for compliance in the letter. Essentially, the letter is suggesting the taxpayer send out a return as soon as possible. While being prompt with the mailing is advisable, the taxpayer still needs to prepare a complete and accurate return.
Don't Rush to Complete the Forms
Concern over submitting a tax return by the due date could lead to rushing a haphazard return out in the mail. This is how errors and mistakes are made. While it would be best to get the return submitted as far ahead of the extension due date as possible, rushing out a sloppy return might lead to that undesired audit.
Don't Submit an Incomplete Return
Unable to properly complete the return, some people may choose to submit a return with many blank sections with the hope the IRS will complete everything accurately. Doing so is not advisable. The return could be deemed "error riddled," and a civil penalty could be assessed. The return would then become more expensive due to the levied fine.
Do Contact a Tax Professional
Those unable to complete the return should call a tax professional right away. As long as an accurate return is filed before the extension time frame elapses, problems should be averted. An accountant such as Mary Anne Bohlinger CPA LLC definitely can help with addressing any troubles over confusion with Affordable Care Act forms that may currently be holding up the submission.