Extensions

It is important to note that if you need an extension, it is not a defeat, nor does it mean that we can not help you. It just means that extra time is needed to make sure that we can provide you a complete and accurate return. At Jacobson Clergy Tax Service, we offer two types of extensions.

Calculated Extensions (Available Until March 15, 2024)

Calculated Extensions are a useful tool that can extend the deadline of the filing of the return (the paperwork itself) by six months (to October 15, 2024). However, please understand that this does not extend the payment of tax itself. We still will need to calculate a balance due (if any), and usually I calculate a higher amount than what you actually may owe (in order to cover any discrepancies). You should pay the tax bill with the extension. If you are unable to pay the tax bill by April 15th, you will still owe interest and a smaller penalty on the balance due (which you would still have to pay anyway even if you filed the tax return without payment in full). If you know you are going to owe, you may want to consider a ZERO EXTENSION (see below). It is important to note that by filing any extension, you will avoid a massive penalty called Failure to File Penalty (which can be up to 25% of your balance due). So, even if you can’t pay your entire balance due, filing an extension will save you money on that particular federal penalty alone.

Please note that if you file a state calculated extension, and you do not pay the balance due in full, you will likely owe interest and penalties to state as well.

We charge $100 for Calculated extension preparation. This would be in addition to your tax preparation fees.

ZERO Extension (Available until April 15, 2024)

If we don’t have any of your documents yet (and you are unable to get them to us), you know you have a refund coming, or you know you are going to owe an amount you can not pay, we can file a Zero Extension. A zero extension does not require any calculations on our part. We simply file the extension to extend the filing paperwork deadline by six months to October 15, 2024.

So if you owe money to the IRS you would still get hit with IRS interest and a small failure to pay penalty. However, by even just filing a zero extension, you would not have to pay a failure to file penalty which can range from 5% to 25% of your balance due.

Note that the zero extension will only avoid the federal failure to file penalty. You may still be liable for state penalties.

We only charge $40 for a Zero Extension Calculation. This would be in addition to your tax preparation fees.