Most small businesses file extensions already - and it doesn't mean you have until Oct to pay, either. You must have paid all tax due by April 15, you just have until Oct to get all the paperwork done.
The rule on extensions is that you can file later, but any taxes you anticipate owing, even at that later date, are due and payable by April 15. If you wind up with a net tax due after a six-month extension, there could (and likely will) be interest and penalties due.
There IS something you can do.
Increase the numbers on your W4. Most people think it’s illegal to claim more exemptions than the “worksheet” allows, but that’s a falsehood that the form intentionally implies to the person filling it out.
Each exemption amounts to about $23 per pay period (according to my accountant). Bump it up around 10, and put that money in a savings account to pay your taxes next year.
They don’t get it, and you get interest - double win.
Under current law, you can indeed file for an extension, but said extension does not mean you can delay paying what the tax codes says you owe. The extension is granted to allow you to file all of the paper work at a later date. You have to pay what you owe when you file for the extension. Gotcha!
I love it.
I love it.
I love it.
I’ll be stealing that idea and giving you credit of course, if you do not mind.
That’s actually a very good idea, while still legal.