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\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n
April 15 is just around the corner. Have you completed your tax return yet?<\/p>\n
If not, you\u2019re not alone. The IRS estimates<\/a> that millions of taxpayers miss the filing deadline every year, and 2026 is unlikely to be any different.<\/p>\n Plenty of entrepreneurs fall into this category. You\u2019re busy running your business. You may be waiting on final K-1s or other partnership documentation. And, let\u2019s be honest, tackling taxes rarely makes anyone\u2019s list of favorite things to do.<\/p>\n But it\u2019s time to stop procrastinating. Here are four steps to take to get yourself and your finances back on track.<\/p>\n With the tax filing deadline so close, it\u2019s time to be brutally honest with yourself about where things stand.<\/p>\n If you\u2019re close to wrapping things up and just need to download a few final documents or review your numbers one more time, don\u2019t sweat. Block out some time in your calendar and check this task off your list.<\/p>\n If, on the other hand, filing an accurate return that includes all your allowable deductions feels like an impossible task, it\u2019s time to shift to plan B. If you\u2019re in this position, chances are you don\u2019t have a tax advisor, and have been ignoring your tax advisor\u2019s outreach or need a new one.<\/p>\n 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\u2019s 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.<\/p>\n If you\u2019ve waited too long to complete an accurate return by April 15, there\u2019s no need to rush. Instead, file an extension<\/a>. Extensions are far simpler than amending a return after the fact because you made an error by rushing to meet the deadline.<\/p>\n The IRS offers several ways to file for an extension. You can pay the taxes you owe through an IRS online payment option<\/a> and indicate that the payment is associated with an extension. You can file through IRS Free File<\/a>, where there is no income limit for extensions. Or you can complete IRS Form 4868<\/a> and submit it by mail, online or through your tax advisor.<\/p>\n If you do this correctly by April 15, approval is automatic. You\u2019ll then have until Oct. 15 to file your return.<\/p>\n But don\u2019t miss that April 15 deadline. If you don\u2019t file your taxes or an extension by this date, the IRS will hit you with a failure-to-file penalty<\/a> of 5% of your unpaid taxes per month, up to a maximum of 25%. Extensions are simple enough, so there\u2019s no reason to give the government even more of your hard-earned money.<\/p>\n Unfortunately, an extension just gives you more time to file<\/i> your return; it doesn\u2019t give you more time to pay<\/i>. That means you need a solid handle on two numbers: your total tax liability for 2025 and the amount you\u2019ve already paid through withholding or quarterly estimated payments.<\/p>\n If you\u2019re expecting a refund, the government will happily hold onto your money a little longer. But if you owe more than you\u2019ve paid to date, you need to make that final payment by April 15 to avoid penalties and interest<\/a>.<\/p>\n If you don\u2019t 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<\/a> directly with you.<\/p>\n If those options don\u2019t fit your financial picture, you\u2019ll need to plan to pay the penalty. It\u2019s not ideal, but it\u2019s also not the end of the world. The failure to pay a penalty<\/a> 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.<\/p>\n The fact that you got this close to the tax filing deadline without a plan means you don\u2019t have a tax strategy<\/a> \u2014 something that no entrepreneur should be without. So, use this experience as a catalyst for putting a tax strategy in place.<\/p>\n 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.<\/p>\n 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.<\/p>\n If you put that kind of relationship in place now, you\u2019ll be in a fundamentally different position come April 2027: less stressed, better prepared and very likely paying less in taxes.<\/p>\n<\/p><\/div>\n April 15 is just around the corner. Have you completed your tax return yet?<\/p>\n1. Assess where you are<\/h2>\n
2. File an extension<\/h2>\n
3. Pay the taxes you owe<\/h2>\n
4. Get serious about how you manage your taxes<\/h2>\n
Key Takeaways<\/h2>\n
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