Backstory: I started a business in 2021 that grew a lot in 2022, and I’ve been struggling to balance everything. In 2022, I filed an extension and got my personal taxes done by the October deadline, but they were complicated, and I ended up needing a CPA to review them. I didn’t prioritize finding a CPA, so now I’m in the same boat this year. My personal taxes feel even more complicated (real estate sales, 1031 exchanges, etc.), and I just don’t have the time to get them done by the deadline tomorrow.
The good news is that I can pay my taxes if I knew what I owe, but I’m not sure how to file without getting into trouble since I don’t have it all figured out yet.
So, what’s my best move before the deadline so I don’t get into trouble? (I am definitely hiring a CPA after this!)
You’re already late on payments that were due in quarterly installments, with the final amount due by 4/15 for 2023.
Do you live in one of the hurricane relief states (AL, GA, NC, SC, FL, TN, or VA)? If so, you’re in luck because everything’s extended to 5/1/25 due to the relief provisions.
If you’re not in those states, you should do the best you can to file something by the deadline and amend it later if needed.
Parker said: @Timber
Appreciate the advice, I definitely should’ve managed my time better.
Did you pay estimated taxes during the year? If you can make a reasonable guess for what you owe, pay that to stop more penalties. Then amend the return later if needed.
There aren’t many good options if you file late. Payments were due by 4/15, so there will be penalties. The extension gave you six more months to file, but after that, there’s no more leeway. It’s important to file as soon as you can.
Honestly, you might end up filing late. Take this time to gather your documents and hire a CPA after the deadline. They’ll be more available once things calm down.
Lin said:
Honestly, you might end up filing late. Take this time to gather your documents and hire a CPA after the deadline. They’ll be more available once things calm down.
If you can, make a large payment to cover what you think you owe. That way, you’ll reduce any penalties, as they’re based on how much you owe when you file.