Myth:

The IRS and state you live in charge a fee for filing tax extensions.

This is not true.

Extensions are one of the most misunderstood tax topics.

Here is how I would best sum up extensions in one sentence:

Extensions give you the ability to file your actual tax returns at a later date, but the deadline to pay the tax you owe is NOT extended.

And that makes sense – if the money wasn’t due now, why would anyone pay it?

So, if your accountant tells you that you need to make a payment with your extension, it’s not because there is a fee attached to the extension.

The extension is “free”; you’re just paying the amount of tax you estimate you owe.