To file a federal extension please complete our new client information form below. Please keep in mind
that an extension to file is NOT an extension pay. The IRS and most states require estimated tax
payments be made quarterly throughout the year with the last payment due by January 15th after the
year has ended. Unless you have already made quarterly estimated tax deposits during the year it is
likely you will still owe a late payment penalty despite an extension being filed. You can still minimize
any late payment penalties by making an estimated tax deposit at the IRS website at the link below:
Payments | Internal Revenue Service
If you are a resident of a state that imposes an income tax, you will visit the website for your states
Department of Revenue to submit a payment. Please note that some states only allow you to file an
extension if you are submiting an estimated tax deposit with the extension.
If you have filed an extension without having made an estimated tax payment the penalty will be
approximately 0.5% per month of the balance due plus interest. If for example, you have balance due to
the IRS totaling $10,000 and you wait until the extension due date of October 15th to file and pay your
income tax return the penalties and interest will be approximately $800.
Our office does offer tax planning services however you must weigh the potential cost of such an
engagement versus the penalty assessment. I have found that in most cases if you are working for an
employer that is not withholding income tax from your salary you should set aside approximately 20%-
25% of your income for federal income tax. If you are a resident of a state that imposes a state level
income tax, I recommend you put aside approximately 5-7% of your income depending on your state
residency. If you prefer to engage our office for a formal tax planning engagement, please contact our
office to discuss.
If taxpayer engages our office to complete an income tax return it is the clients responsibility to provide
all necessary information to complete the income tax return no later than 30 days prior to the extended
returns due date.
AvMar charges a processing fee of $75 to electronically file a federal extension and $35 for a state
By signing this form you authorize AvMar Accounting Services, LLP to file your automatic
tax extension if necessary. It is still the taxpayers responsibility to make estimated tax
payments throughout the year to avoid late payment penalties. An extension only extends
the time to file a tax return not pay the tax that is due.