This article was originally published on the Marijuana Patients Organization site on March 24, 2014.
My taxes are not ready can I still file an extension if I am in the medical marijuana field or is this a red flag for the government?
–Anonymous
A common misconception is that filing and extension also extends the amount of time in which you have to pay your tax liability. An extension will protect you from failure to file penalties but you will be subject to failure to pay penalties as well as accrued interest on your unpaid balance. The act of filing an extension will not raise a “red flag” with the IRS no matter what your line of business. It is advisable to make a substantial estimated payment with your extension or to file a request for a payment plan if you are delaying because of your personal financial position. Don’t procrastinate on filing an extension if you know that you won’t be filing on time. Be aware too that there fees associated with a payment plan.
James Campbell, CPA
NumbersAccounting.net
james@numbers-accounting.com
