filing an extension or not

Discussion in 'Business Operations' started by illday, Apr 14, 2005.

  1. illday

    illday LawnSite Member
    Posts: 89

    I finished my taxes and I owe an amount of $ that I 'll probably have within a month or so. Should I file for an extension or do I just send in my tax return and pay the goverment in a month.
  2. wally world III

    wally world III LawnSite Member
    Posts: 128

    plus interest

    plus interest.............................

    your screwed period...........................
    what were you thinking ?????????????????????????????
    :cry: :cry: :cry: :cry: :cry:
  3. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    they have set up payment plans for me......
  4. illday

    illday LawnSite Member
    Posts: 89

    Dave did u file an extension or just send in your taxes with a partial payment.
    We are not talking about a hell of alot of money here, just the beginning of the season things can be tight.
  5. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    technically, you are supposed to send in the estimated amount when you file for an extension. The extension only buys you time to finalize the amount, not hold off on the entire amount.

    This is a beautiful example of why a cash flow statement is among the most important concepts in a business. Cash is King, if you are out of cash-you are out of business.
  6. illday

    illday LawnSite Member
    Posts: 89

    I am a sole -prop. and work a fulltime job, I have 30 customers and always pay my taxes and insurance on my business on time. I owe $500 in Federal and if I can by sometime to pay that would be great. I just upgraded my equipment and am a little strapped this month. I am not going out of business.
    I'm just a guy trying to pay the bills and put a kid through college.
  7. daveintoledo

    daveintoledo LawnSite Silver Member
    Posts: 2,587

    call some local offices and ask>>>long wait right now... but hey set up a payment plan for the 500 i owed last year....but dont assume, call and get the correct info
  8. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    File an extension, and then get your return done as fast as possible and send your money in. You're going to get a penalty and some interest, but not that much with $500.

    Or, just file your return and don't send the money you owe. The irs will send you a bill and give you 45 or so days to pay. Then you can either pay up all at once or ask for a payment plan.

    Either way, $500 isn't that big of a deal. Just don't let it snowball year to year.

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