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What you need to know if you plan to file a tax extension

PROVIDENCE, R.I. (WPRI) -- Tax day is Tuesday, and there are plenty of procrastinators who haven't filed yet.

According to the IRS, as of last Friday, 40 million taxpayers hadn't filed their tax returns. 

Greg Cabral, managing partner at BlumShapiro says he sees it every year. 

"If they're procrastinating and they want deductions, the only thing they can really do at this point is contribute to an IRA, or if they have some other kind of retirement plan set up, they can make that last minute contribution," Cabral said. "Alternatively, they can procrastinate longer and file an extension." 

It's important to remember, even if you file an extension, you still have to make your tax payment by Tuesday. 

"You need to make a really good faith estimate," Cabral said. "You need to still go through it and calculate it. It makes sense to put a little cushion in there so that you're not short and you don't' get penalized."

The IRS expects to receive more than 14 million extension requests. 

Cabral says it's never too early to start thinking about next tax season. 

"Start now. Start gathering information, start keeping track of the information," he said. "Set up a system to gather the data, to gather deductions, but start keeping track of that information now."  

So far, the IRS has processed more than 101 million tax returns and issued more than 79.1 million tax refunds totaling $226.6 billion. The average federal return is $2,864.


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