Does filing an extension on your taxes hurt your credit?

The good news is that simply filing an extension or discovering that you owe the IRS an amount of money when it comes to paying taxes shouldn't affect your credit reports. Only when you don't have the money to pay what you owe can this affect your credit. The length of filing the tax return is very limited. It gives you more time to file your return, but it doesn't help with other things.

As mentioned above, you still have to pay any taxes due before the original due date. Nor does it delay the payment of estimated taxes, give you more time to contribute to an IRA or savings account for medical expenses, or extend any of the other April 18 deadlines. After April, divorced couples cannot file amended separate returns if they previously filed a joint return. Nor does an extension of presentation give securities traders more time to make a choice with market prices.

An extension only extends the time to file the return, not the time to pay the taxes due. Keep in mind that military personnel domiciled in Louisiana must file an income tax return as a resident of Louisiana and declare all their income to Louisiana, regardless of where they have been stationed. Credit is allowed for income taxes paid to other states. Taxes If you are self-employed, minimize the chances that the IRS will review your tax return a second time and avoid these audit triggers.

You can check the status of your business tax account online using the Louisiana Taxpayer Access Point (LaTap) system. Tax law allows three years from the time the return is filed or two years from the time the tax is paid, whichever occurs later, to request a refund related to the return. If you are not a company official or did not have direct control or oversight of taxes, you must provide official documentation and the name and address of the official responsible for filing returns and paying taxes. The Louisiana Department of Revenue (LDR) participates in a federal compensation program once an individual tax liability has reached its final status, plus 60 days after the obligation is recorded in the federal Financial Management Service (FMS).

One way to avoid a tax lien or other collection action is to set up a payment plan with the IRS when you receive a tax bill. Taxpayers with individual incomes who cannot pay all of their taxes by the due date can apply for a six-month installment plan by requesting payment in individual income installments, Form R-19026. If you filed your original tax return electronically, you can sign in to your account and modify your original return. If you file your return before the due date and request an installment agreement, the penalty is reduced to 0.25% for any month in which an installment agreement is in effect. Individual income tax liabilities can be paid electronically by debiting an electronic bank account using the Louisiana File Online application or by credit card using Official Payments.

In addition, a temporary absence from Louisiana does not automatically change the taxpayer's address for income tax purposes. If you have received estimated fees for the periods after the closure of your business, you must submit the application for closing business tax accounts, Form R-3406, and any dissolution documents, if applicable, and your account will be closed and the estimated fees issued after the closing date will be canceled. As an officer of a corporation, limited liability company, or limited partnership, the law makes you personally responsible for any withholding of sales and income taxes that are collected and not redirected to the state. If the failure to timely file the tax return or payment of the taxes due is not due to the taxpayer's negligence but to another reasonable cause, the clerk may exempt from penalties for filing or late payment.

For example, you (or your tax preparer) will have more time to determine which tax exemptions apply to you and which don't. To apply for a payment plan, taxpayers with individual incomes can file Form R-19026, the application for installment payment for individual income, and businesses can file Form R-19027, the application for installment payment for business tax. . .