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Key Takeaways
- File an extension and pay what you owe: Gain extra time to file without giving the IRS extra interest.
- Turn taxes into a strategy: Use deductions, credits and a trusted CPA to permanently reduce your tax burden.
April 15 is just around the corner. Have you completed your tax return yet?
If not, you’re not alone. The IRS estimates that millions of taxpayers miss the filing deadline every year, and 2026 is unlikely to be any different.
Plenty of entrepreneurs fall into this category. You’re busy running your business. You may be waiting on final K-1s or other partnership documentation. And, let’s be honest, tackling taxes rarely makes anyone’s list of favorite things to do.
But it’s time to stop procrastinating. Here are four steps to take to get yourself and your finances back on track.
1. Assess where you are
With the tax filing deadline so close, it’s time to be brutally honest with yourself about where things stand.
If you’re close to wrapping things up and just need to download a few final documents or review your numbers one more time, don’t sweat. Block out some time in your calendar and check this task off your list.
If, on the other hand, filing an accurate return that includes all your allowable deductions feels like an impossible task, it’s time to shift to plan B. If you’re in this position, chances are you don’t have a tax advisor, and have been ignoring your tax advisor’s outreach or need a new one.
Now is the time to make the adjustment that best fits your unique situation. While you can use off-the-shelf tax software to complete your return, entrepreneurs typically find that hiring a pro is money well spent. It’s also the best way to get strategic advice that can set you up for making way more money while paying way less taxes over the long term.
2. File an extension
If you’ve waited too long to complete an accurate return by April 15, there’s no need to rush. Instead, file an extension. Extensions are far simpler than amending a return after the fact because you made an error by rushing to meet the deadline.
The IRS offers several ways to file for an extension. You can pay the taxes you owe through an IRS online payment option and indicate that the payment is associated with an extension. You can file through IRS Free File, where there is no income limit for extensions. Or you can complete IRS Form 4868 and submit it by mail, online or through your tax advisor.
If you do this correctly by April 15, approval is automatic. You’ll then have until Oct. 15 to file your return.
But don’t miss that April 15 deadline. If you don’t file your taxes or an extension by this date, the IRS will hit you with a failure-to-file penalty of 5% of your unpaid taxes per month, up to a maximum of 25%. Extensions are simple enough, so there’s no reason to give the government even more of your hard-earned money.
3. Pay the taxes you owe
Unfortunately, an extension just gives you more time to file your return; it doesn’t give you more time to pay. That means you need a solid handle on two numbers: your total tax liability for 2025 and the amount you’ve already paid through withholding or quarterly estimated payments.
If you’re expecting a refund, the government will happily hold onto your money a little longer. But if you owe more than you’ve paid to date, you need to make that final payment by April 15 to avoid penalties and interest.
If you don’t have the funds to pay in full, you do have options. You can pay by credit card and manage payments that way. In some circumstances, the IRS will agree to a payment plan directly with you.
If those options don’t fit your financial picture, you’ll need to plan to pay the penalty. It’s not ideal, but it’s also not the end of the world. The failure to pay a penalty is 0.5% per month, which you can think of as taking out a loan from the government at a relatively low interest rate for a few months.
4. Get serious about how you manage your taxes
The fact that you got this close to the tax filing deadline without a plan means you don’t have a tax strategy — something that no entrepreneur should be without. So, use this experience as a catalyst for putting a tax strategy in place.
Because the government wants to encourage activities such as business formation, capital investment, job creation and research and development, it offers a host of tax incentives in these areas. Looking at the tax code in this way will give you a roadmap for using tax credits and deductions that will reduce your tax burden legally and, often, permanently.
Your tax advisor should help you with this strategic work. Look for a certified public accountant (CPA) who is interested in understanding your business, personal financial situation and, most importantly, your goals. You want someone who will become a trusted advisor, not just an order taker who reaches out once a year.
If you put that kind of relationship in place now, you’ll be in a fundamentally different position come April 2027: less stressed, better prepared and very likely paying less in taxes.
Key Takeaways
- File an extension and pay what you owe: Gain extra time to file without giving the IRS extra interest.
- Turn taxes into a strategy: Use deductions, credits and a trusted CPA to permanently reduce your tax burden.
April 15 is just around the corner. Have you completed your tax return yet?
If not, you’re not alone. The IRS estimates that millions of taxpayers miss the filing deadline every year, and 2026 is unlikely to be any different.
Plenty of entrepreneurs fall into this category. You’re busy running your business. You may be waiting on final K-1s or other partnership documentation. And, let’s be honest, tackling taxes rarely makes anyone’s list of favorite things to do.
