90% of clients misunderstand tax extensions, tax pro survey shows

In a September poll of tax professionals, 90% said client misunderstandings about tax extensions are very or somewhat common.

Payment is at the center of the confusion. Nearly half of respondents (48%) said clients believe an extension gives them additional time to pay their tax bill.

Another 23% said clients believe penalties and interest do not apply because they filed for an extension. Combined, 70% of responses indicated a payment-related misconception.

When asked what keeps extended returns from being completed, 30% of respondents identified missing income documents, while another 29% pointed to incomplete business, rental or side-income records. See more findings.