This tax season saw an avalanche of extension requests.
The Tax Cuts and Jobs Act played a major role but it wasn’t the only factor.
There were two major drivers:
- The complexity of tax reform
- and the earlier deadline for filing for pass-through entities – Partnerships and S Corporations. This earlier deadline caused a ripple effect on 1040s, individuals did not not receive K-1s by April 15 so they had to file extensions.
In my opinion that earlier deadline was the major factor and was completely predictable.