As the tax deadline approaches, many individuals and business owners in Conway consider filing a tax extension. While extensions can be helpful, they’re often misunderstood.

At Peavy & Associates, we guide clients through the extension process so they can stay compliant and avoid unnecessary penalties. Here’s what you need to know about tax extensions in 2026.

📄 What Is a Tax Extension?

A tax extension gives you additional time to file your tax return, typically extending the deadline from April to mid-October.

However, it’s important to understand what an extension does—and what it doesn’t do.

An extension:

• Gives you more time to file your paperwork

An extension does NOT:

• Give you more time to pay taxes owed

This is one of the most common misconceptions and can lead to unexpected penalties if not handled correctly.

⏳ Who Should Consider Filing an Extension?

Filing an extension can be a smart move in several situations:

• You’re missing important tax documents
• Your return is complex (investments, business income, etc.)
• You want to avoid rushing and making errors
• You need more time to work with an accountant

An extension allows you to file a more accurate return rather than submitting something incomplete or incorrect.
💰 Do You Still Have to Pay by the Deadline?

Yes. Even if you file an extension, you are still required to:

• Estimate your total tax liability
• Pay any amount owed by the original April deadline

If you don’t pay on time, the IRS may apply:

• Failure-to-pay penalties
• Interest on the unpaid balance

Paying as much as you can upfront helps reduce these costs.

⚠️ Common Mistakes to Avoid

Many taxpayers misunderstand how extensions work. Here are some common mistakes:

• Assuming an extension delays payment
• Failing to estimate taxes owed accurately
• Forgetting to file the return by the extended October deadline
• Ignoring state tax extension requirements

Avoiding these mistakes can save you time, money, and stress.

🧾 What About South Carolina Tax Extensions?

If you live in Conway, you may also need to consider South Carolina state tax requirements.

In many cases:

• South Carolina honors federal extensions
• You may still need to submit additional forms or payments at the state level

Working with a local accountant ensures you stay compliant with both federal and state regulations.

💼 Why Work with an Accountant for a Tax Extension?

Filing an extension properly—and planning what comes next—can make a big difference in your financial outcome.

At Peavy & Associates, we help clients:

• File extensions correctly and on time
• Accurately estimate taxes owed
• Reduce penalties and interest
• Complete and file returns before the extended deadline

We make sure your extension is part of a smart tax strategy—not just a last-minute decision.

📍 Need Help Filing a Tax Extension?

If you’re considering a tax extension or aren’t sure what to do next, Peavy & Associates in Conway is here to help.

Contact us today to file your extension correctly and create a plan for completing your return with confidence.

When taxpayers are faced with high income tax bills they can’t immediately pay in full, the first reaction is typically panic. There is a way to buy some time to gather the necessary documents needed to file a return, but it won’t give individuals extra time to pay their taxes. They’ll still be due on the appointed date set by the IRS.

Filing an extension will give taxpayers until Oct 15 to gather their documentation. Individuals will need to file a special form and they’ll be required to estimate their tax liability. There are some rules to which individuals must adhere and they’ll typically be subject to fines and fees if they don’t pay what they owe in full.

In many instances, it’s best to have the services of an income tax professional who knows the exact requirements, forms and deadlines, as there are a multitude of forms for different entities. People at any income level, along with businesses, can file an extension on their federal taxes and they can even do so if they file electronically.

If Oct. 15 falls on a Saturday, Sunday or holiday, the next business day will be considered the due date. An extension can also be obtained by paying all or part of the taxes owed by indicating the payment is for an extension. Using Direct Pay, the electronic federal tax payment system (EFTPS), or a debit or credit card offers several benefits.

EFTPS enables people to schedule payments up to 365 days in advance and payments can be made from any location. Payments can be rescheduled if necessary and tracked via email. Individuals can view 15 months of their payment history.

One of the reasons that hiring a tax professional is a good investment is that there may be special rules that apply to individuals living outside the U.S., those serving in a combat zone, or a hazardous duty location.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

Contact Us Today

Individuals that don’t pay their taxes in full by the deadline of April 15 each year are subject to a monetary penalty. The IRS can charge up to 6 percent interest on the unpaid balance and may choose to add a late payment penalty of 0.5 to 25 percent. Individuals that don’t pay their taxes are digging themselves a financial hole that can be almost impossible to escape.

Notices about the unpaid balance will begin to arrive and the letters will take on a more severe tone the longer a taxpayer ignores them. The IRS may place a tax lien against any property and financial assets that the person owns. The IRS will then be entitled to some or all of the money if an asset is sold.

Even if the actions aren’t reported on the taxpayer’s credit report, liens are part of public records. It can affect the person’s ability to maintain security clearance, obtain employment, a credit card or loan. Filing bankruptcy is no guarantee that the lien or tax bill will be dismissed.

The account may be sent to a collection agency for recovery. For those that owe tens of thousands of dollars or more, an individual could receive a visit from a revenue officer. During this time, the IRS may begin seizing assets.

The law says the IRS can take the taxpayer’s vehicle to sell at auction, 401(k) accounts, IRAs and homes. The State Department may get involved and can refuse to renew or issue a passport or revoke an existing passport.

However, what many don’t know is that the IRS generally won’t pursue individuals for unpaid taxes after 10 years, but they might, due to the 10 Year Statute of Limitations. The IRS doesn’t consider it in their best interests or cost effective to continue trying to collect and will wipe it clean from their books. It’s a complicated process that can be temporarily suspended under circumstances and the only one qualified to advise an individual on this is a tax professional.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

Contact Us Today

Amidst the hustle and bustle of the holiday season, many forward-looking individuals are already thinking about their tax return. Even though federal tax returns are due on April 15, there are a variety of legitimate reasons why individuals may want to file for an extension on their taxes. For those that file an extension, be aware that the deadline for paying their taxes is Oct. 15.

Incomplete Documentation

The IRS requires documentation of all earnings and individuals may not have it. They may have lost their W2 from an employer and be waiting for a copy or the documentation. Though it doesn’t happen often, forms may be lost in the mail. It’s far better to file for an extension and wait for the W2 or other forms. It’s not uncommon for documents such as Form 1099 or Schedule K-1 to be late.

Life Events

Natural disasters, a death in the family, or severe illness are also reasons for filing an extension. Filing taxes is something that requires an individual’s full attention and any of those situations are distractions that aren’t conducive to filing tax returns.

Tax Savings

In some instances, an extension can be a strategic money-saving decision for converting an IRA. Taxpayers can perform a Roth IRA conversion, and while they’ll still have to pay taxes on it, the advantage is that individuals can take tax-free deductions from the IRA in the future. Filing an extension makes good business sense.

Procrastinators

A number of individuals simply run out of time to file due to procrastination. The IRS won’t ask individuals to supply a reason for late filing, but for those that insist on waiting until the last moment, an extension does give them some breathing room.

Fees and Penalties

Even if a taxpayer files an extension on their taxes and doesn’t file by the extension deadline, they’ll still be subject to fees and penalties. The IRS will charge 1½ percent for each month the taxes aren’t paid after the filing deadline has passed. For those that don’t file a return at all by the extension date, the penalty increases to 5 percent per month and can reach a maximum of 25 percent.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

Contact Us Today