Pros And Cons Of Filing A Tax Extension
If you want to obtain a 6-month extension to file your taxes and you have legal reasons for doing so, your tax accountant might be able to help you. But remember that, like everything else, filing for a tax extension has its advantages and disadvantages. Here's an overview of a few pros and cons of filing a tax extension. Pros If you file a tax extension, it can help you prevent a late-filing penalty. If you file your taxes late, the CRA will charge you 5% of the tax owed and an additional percentage for every month it's late. You can also avoid failure to file taxes with an extension. A tax extension helps you file a complete and accurate tax return. Instead of hurrying up and making mistakes as you go along, a tax extension gives you more time to gather all the necessary documents and ensure that your return is accurate. This is even more helpful if you have a lot of deductibles or if you're self-employed. If you have a complex tax return, your tax accountant will have ...