You may generally request an additional 6 month extension to file your personal or business tax return. Filing this extension allows more time to gather all the required information to accurately file the tax return.
There is not a penalty for filing an extension but you are required to estimate and pay any taxes due by the original filing deadline to avoid late payment penalties and/or interest. Extensions must be requested no later than the original due date of your tax return. Failure to file your tax return or extension by the due date, or to properly estimate the tax due with the extension, could result in failure to file penalties.
Filing requirements vary from state to state. Some states will automatically accept the filed federal extension and do not require a separate extension request. But in general, the state tax owed still must be paid by the original due date. Some states require their own extension request form. Taxes will need to be estimated and paid with the extension to avoid late payment penalties and/or interest.
The original due date for Federal personal, trust and estate, and calendar year C-corporation tax returns for calendar tax year 2022 is April 18, 2023. An extension will move the due date for trusts and estates to October 2, 2023, and will move the personal and C-corporation due date to October 16, 2023.
The original due date for Federal S-corporations and partnership tax returns for tax year 2022 is March 15, 2023. An extension will move the due date to September 15, 2023.
There are many other tax issues that taxpayers should consider when filing an extension for 2022 tax returns. These include –
- The need to make 2023 estimated tax payments for federal or state filings, which begins April 18, 2023. This may include 2023 state estimated tax payments for pass through entities under new rules in most states where entities can pay its own state tax, instead of being paid by the owners.
- Remember to consider whether any source of 2022 income will report income to nonresident states, and whether extensions are in order for those jurisdictions.
- Consider whether 2023 gift tax returns are due, the extension procedure for these filings, and whether any estimated tax is due with the extension.
- In general, NC property tax listings were due January 31, and any extension is available through March 15 or April 15, and no further.
Please do not hesitate to contact us if you have any questions about these or other tax matters.
