Extension season workflow for CPA firms

Extensions buy time to file, not to pay, and they often turn into a second tax season. A simple workflow keeps extended returns moving from April to October.

What an extension does and does not do

An individual extension moves the filing deadline to October 15. It does not extend the time to pay. Tax owed is still due by the April deadline, and interest runs on any unpaid balance. Clients often miss this distinction, so say it plainly when you file the extension.

Build one list in April

• Every extended return, with the preparer, client contact, and missing items
• Whether an estimated payment was made with the extension
• A target date for complete documents, well before October

Keep it moving over the summer

• Start reminders in June, not September.
• Review the list every two weeks and reassign work that is stuck.
• Book review time for each return before the final month.

Plan for disaster postponements

Houston firms should expect the IRS to postpone deadlines after major storms. After Hurricane Beryl in July 2024, the IRS moved various deadlines, including extended individual returns originally due October 15, 2024, to February 3, 2025 for taxpayers in 67 Texas counties, including Harris County.

Record each client's county so you can filter quickly when relief is announced, and remember that relief depends on the client's address of record, not your office's.

Frequently asked questions

Does an extension give more time to pay?

No. The IRS is clear that an extension to file is not an extension to pay. Tax owed is due by the April deadline.

Should we plan around a disaster postponement?

No. Plan for October 15 and treat any postponement as extra room. Postponements are announced after a disaster and only cover affected areas.

Sources

• IRS, "Get an extension to file your tax return"↗
• IRS, "IRS announces tax relief for victims of Hurricane Beryl in Texas"↗