John M. Hoffman & Associates CPAs

Frequently Asked Questions

Extending those tax filings?

Please be reminded that April 15 of 2016 falls on a Friday.  

In order to prepare your automatic extension request, please give us adequate time to do an accurate estimate and to prepare the extension requests.

Most extension payments are made electronically via electronic debit. In fact, Massachusetts requires that extension payments of $5,000 or more be made in that way (they claim they will not accept your extension payment greater than $5,000 if made by check). 

If you think you are going to owe sizeable money with your extension, please let us know that in advance. 

If you are going to owe money, please DO NOT WAIT until the last minute to make sure that your funds are ready for transfer.

We like to submit the extension request enough in advance such that should there be some problem, we have sufficient time to attempt to resubmit.  

Do not forget that an extension, is an extension of time to file and not an extension of time to pay. If you owe money beyond what is paid with the extension request, the IRS will charge you interest at some floating rate as well as a penalty of Ĺ of 1% per month. This makes the effective non-deductible charge for being late with your payment approximately 15% on an annualized basis. 

If you owe money, we suggest that you pay it with your extension request (if you can). If you donít have the money for both the federal and the state we generally recommend paying something to both and whenever possible trying to get at least 80% of the tax paid into the state. The state (Massachusetts at least) is real fussy about not having paid in 80% of the ultimate tax with the extension and they generally assess extra penalties that can be painful. 

We always tell people that we do not mind preparing returns on extension. 



The automatic extension is a six month extension until October 15. This does not mean that you should not think about gathering your remaining tax materials until late September. We suggest that you try to get everything you can to us as soon as possible. If you are waiting for a K-1 from an S corporation or a partnership, consider getting us all the remaining materials; we can easily add the K-1 form at the last minute.