The Business Owner's Tax Extension FAQ

Once you file for an extension, what should you look to accomplish in the extra time you've been given?

"After filing an extension, it's important to meet with your accountant and organize your records," Sweeney says. "Organized records will help you identify the sources of your income. You need this information to separate business from non-business income and taxable from nontaxable income. You will also need records to help you remember all of your expenses."

To get a head start on what's required of you over the next few months, Linkov advises treating your six-month extension "as if it is a much shorter period of time."

"Just because you have another few months to file your return, that doesn't mean you have to wait until the last day. So make a concerted effort to obtain the documentation or other missing information as soon as possible," she says.

Once your 2012 tax return is ready to be filed, you can use the extra time to start planning for the 2013 filing season -- and taking a hard look at what might have gone wrong this year.

"Identify and address areas of your tax compliance and function that resulted in the need for you to file an extension," Linkov says.

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