The IRS called… they want your taxes!
April has an aggressive amount of admin work for you to do on your taxes. You've got to decide whether you're going to file or extend, actually do either of those options, and figure out how much to pay for your Q1 2026 estimated taxes. I know you've got a lot on your plate, so let's break down exactly what you need to know to avoid any pesky penalties:
Filing your tax return. If you've received all your tax documents and you (or your tax accountant) have gotten your return all prepped, it sounds like you're good to file! Once you've cleared up any questions you have about your return, don't forget to sign your e-file signature authorization from your accountant.
Extending your tax return. Not quite ready to file yet? That's totally fine; the IRS doesn't even really care why you're extending. They just need you to file Form 4868 (for an automatic 6-month extension) by 4/15. I recommend e-filing it so that you get an extension confirmation number!
And most importantly, you need to understand that an extension only gives you more time to file. Any taxes you owe for 2025 are still due. If you don't pay with your extension, you could face penalties and interest. Oh yeah, and don't forget to extend any state returns too (check with your state(s) on their extension deadlines).
Making your Q1 2026 estimated tax payment. This double tax due date is the WORST! Not only do you have to pay any remaining 2025 taxes, but you've also got to make a separate payment to cover taxes on your earnings in 2026 thus far. Not sure how much to pay? Find out your safe harbor payment amount from your accountant. Just like your extension, make sure you don't forget about any state estimated tax payments, too. Sometimes they line up with federal deadlines, but very annoyingly, a lot of times they don't!
And if the whole reason you had to extend your return is that your 2025 bookkeeping isn't done, let's make a game plan to get it done. Don't wait til October to decide you don't want to do your books yourself (trust me, all the good CPAs are booked by then!).
