Understanding Your Tax Extension | Bullogic Tax Services

Understanding Your Tax Extension

A guide for Bullogic clients who have been placed on extension for the 2025 tax year.

The Most Important Thing to Know

A tax extension gives you more time to file your return. It does not give you more time to pay. If you owe a balance, that amount is still due by April 15, 2026. You are responsible for estimating and submitting your own federal and state tax payments by that date. We have provided an estimate of your remaining liability if we had sufficient documentation to do so. Once you make your payment, please let us know the amount and the date so we can reflect it on your return.

What Is a Tax Extension?

A tax extension is a formal request to the IRS (and your state, if applicable) for additional time to file your tax return. For individuals, we file Form 4868. For businesses (S-Corporations, partnerships, and C-Corporations), we file Form 7004.

The extension is automatic. The IRS does not require a reason, and no approval letter is mailed back to you. If the form is submitted on time with a reasonable estimate of your tax liability, the extension is granted.

We filed this extension because we either did not have all of the information needed to complete an accurate return by April 15, or because your return requires additional time to prepare correctly. Extensions are a normal part of the process, and we use them when accuracy matters more than speed.

Key Deadlines
Return Type Original Deadline Extended Deadline
Individual (Form 1040) April 15, 2026 October 15, 2026
S-Corporation (Form 1120-S) March 16, 2026 September 15, 2026
Partnership (Form 1065) March 16, 2026 September 15, 2026
C-Corporation (Form 1120) April 15, 2026 October 15, 2026
Tax payments are due by the original deadline regardless of extension status.
Your Tax Payment Is Still Due April 15

This is the part that catches people off guard. The extension only moves the filing deadline. The IRS still expects payment by the original due date.

If your full balance is not paid by April 15, the IRS charges a failure-to-pay penalty of 0.5% of the unpaid amount per month, plus interest at the current federal rate (currently 7% annually). These charges accrue until the balance is paid in full.

For context, the failure-to-file penalty (not filing at all and not requesting an extension) is 5% per month. That is 10 times more expensive. Filing the extension, even if you cannot pay the full balance right now, is always the right move.

Your Responsibility

We do our best to estimate your remaining tax liability based on your prior year return and any documents you have uploaded. If we were able to calculate an estimate, we provided that amount to you directly. If no documents have been uploaded, we are unable to make an estimate, and it is up to you to estimate your own tax liability.

You are responsible for making your own federal and state tax payments by April 15, 2026. Once you have made your payment, please let us know the amount paid and the date it was submitted so we can reflect it accurately on your return.

Federal payments: IRS.gov/payments
State payments: Visit your state's department of revenue website to submit payment.

State Tax Extensions

Federal and state extensions are separate. Each state has its own rules. Some states automatically accept the federal extension, while others require a separate state extension form.

If you file in a state with an income tax, we have filed your state extension as well. State tax payments follow the same principle: the payment is due by the original deadline even though the filing deadline has been extended.

Common Questions
No. The IRS has confirmed that filing an extension does not trigger or increase audit risk. Audit selection is based on the contents of your return, not when it was filed. Many tax professionals (including our team) routinely file extensions for complex returns because the additional time results in a more accurate filing, which actually reduces audit risk.
Filing the extension itself is free. There is no IRS fee, and we do not charge extra to file one on your behalf. The only potential cost is interest and the failure-to-pay penalty if you owe taxes and do not pay by April 15. If your taxes are fully paid or you are expecting a refund, the extension costs you nothing.
Our goal is to complete and file your return well before the extended deadline. The exact timing depends on when we receive all of your documentation and the complexity of your return. We will reach out to you directly when we are ready to finalize. You do not need to do anything additional unless we request information from you.
There are several common reasons. You may be waiting on a K-1 from a partnership, trust, or S-Corporation. Your return may involve complex transactions (like real estate sales, stock option exercises, or multi-state filings) that require additional time to prepare accurately. In some cases, we may use the extension strategically to allow more time for retirement plan contributions or other planning decisions. Whatever the reason, we file extensions when getting the return right matters more than getting it done fast.
Pay as much as you can by April 15. The failure-to-pay penalty is calculated on the unpaid balance, so reducing that balance reduces the penalty. If you need to set up a payment plan, the IRS offers installment agreements through their website. Let us know and we can help you evaluate your options.
Yes. If you are owed a refund, there is no penalty for filing on extension. The IRS does not charge interest or penalties when they owe you money. Your refund will be processed once your return is filed. The only downside is that you receive the refund later than you would have if the return had been filed by April 15.
If we have requested documents or information from you, please send those over as soon as possible so we can complete your return. If you owe a balance and have not yet submitted payment, make that payment by April 15. Beyond that, there is nothing you need to do. We will contact you when your return is ready for review.
No. Your Q1 2026 estimated tax payment is still due April 15, 2026, regardless of the extension. The extension applies to your 2025 return filing only. Your 2026 estimated payment schedule is completely separate: Q1 is due April 15, Q2 is due June 15, Q3 is due September 15, and Q4 is due January 15, 2027.
IRA and HSA contributions for the 2025 tax year are due by April 15, 2026, regardless of whether you file an extension. The extension does not extend the contribution deadline. However, SEP IRA contributions can be made up until the extended filing deadline (October 15, 2026 for individuals), which is one of the strategic reasons we may file an extension.

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