seth on Nostr: Here is some free alpha since I see a lot of people get this wrong: When you extend ...

Here is some free alpha since I see a lot of people get this wrong:

When you extend your tax return's deadline, you are extending the time to file the paperwork, not the time to pay. If your filed return results in a tax balance owed, interest begins accruing as of April 15, 2025, whether or not you extend (for Individual Form 1040s). The failure-to-pay penalty can be avoided if at least 90% of the tax liability is paid by April 15, with the remaining balance paid by the extended due date.

"But I heard that you are more likely to get audited if you extend your return?"

That is not correct—in fact, quite the opposite. Superseded returns, filed before a return's due date, are processed and treated like an originally filed return. Amended returns, filed after a deadline, signal a correction and require additional forms and review, potentially increasing scrutiny.

For Tax Year 2024:

Passthroughs (1065 & 1120-S) have due dates of March 17, with an extension to September 15, 2025.

Individuals (1040) & Corporations (1120) have due dates of April 15, with an extension to October 15, 2025.

Nonprofits (990s) have due dates of May 15, with an extension to November 15, 2025.