Are you and your clients ready for the extended filing deadline?

The Oct. 17 deadline for filing extended returns is fast approaching and tax professionals working with clients who have filed for extensions need to be ready. Here are a few tips to ensure the extended filing season runs smoothly.

Reach out to clients who have yet to file to make sure they understand the documents they still need to provide and remind them of any tasks they must complete before filing.

Double-check important information to be sure it’s correct. Each year the IRS notes that taxpayers often submit incorrect information, such as providing incorrect Social Security numbers for dependents. Remind your clients to make sure they have provided you with the correct information so they can get all of the deductions and credits to which they are entitled.

Be sure that your clients have reviewed any returns that are to be e-filed and submit them by the midnight Eastern Standard Time filing deadline.

If a client needs to file a physical copy of their return, suggest that they take it directly to their local post office to get it hand-canceled before it closes on Oct. 17 to ensure that the client can prove it was mailed on time. When a letter is hand canceled, a postal clerk marks each postage stamp on every envelop with a stamp that notes the current date and the post office location.

Does your client have a different filing date? Taxpayers who are active-duty military and deployed in a combat zone, or have been victims of federally declared natural disasters, are often automatically given additional time to file.

If you believe your client is due a refund, their returns do not need to be submitted by the filing date. Clients generally have three years from the original due date of a return to file a return claiming a refund. However, waiting too long will result in a taxpayer forfeiting their refund if they file after the three-year statute of limitations for filing a return has expired.

Taxpayers also have time to take some proactive steps before the extended filing deadline. For example, a self-employed individual filing a Schedule C or F can still establish and fund a 2021 simplified employee pension plan (SEP) IRA and claim a deduction for the contributions made by Oct. 17. Additionally, the taxpayer can apply a 2021 refund to their 2022 taxes to reduce the amount they will owe next year.

Remember, owing tax to the IRS is never a good reason for not filing a return. Clients who don’t want to file because they anticipate owing money to the government and are unable to pay still have options. They can ask the IRS for assistance in the form of a delayed payment arrangement, short-term payment plan, installment payment plan or an offer-in-compromise. In these situations it is best to advise your client to file sooner rather than later if they are planning on seeking help from the IRS.