from the Equine Tax Group

Newtown, PA — Every year hundreds of horsemen and horsewomen pay far more to the IRS then they should have to. The reason why? They file late and do not get an extension of time to file.

Extensions are automatic and if an accountant has online e-file access you can get an approved extension in about 10 minutes. An extension does not give you more time to pay but it does avoid the five percent a month failure to file penalty which quickly balloons to the maximum 25 percent after five months. That’s like paying an extra dollar for each gallon of gas you buy and you surely would not do that.

Larry Rosenblum, President of the Equine Tax Group stated, “I can’t understand why anyone would want to give the IRS extra money. Extensions are often free and they give the taxpayer six extra months to get things in order. Not filing on time or an extension is not only foolish in terms of cost, but it’s against the law and can result in serious problems over time. We have many clients who have lost their records and we are able to retrieve 1099s and W-2s for them because we have been authorized direct access to the IRS computer system.

“In my experience very few accountants have ever been on this system. We even have a special access number if we have to call in to the IRS that avoids the typical hour of waiting the normal call to 1-800-829-1040 often incurs.”

You can download a paper extension off the IRS website at www.irs.gov. Simply search for form 4868. While many states honor an IRS extension you should research your state’s rules. This year’s filing deadline is April 17.

For further information, contact the Equine Tax Group at 888.338.2999.