How to Know If You Should File a Tax Extension – Tips for Lawyers

Apr 4

Tax season always seems to arrive faster than expected, and if you're balancing casework, firm management, and your personal finances, you might be wondering: Should I file for a tax extension?

For law firm partners, solo practitioners, and self-employed attorneys, filing an extension can be a smart strategy—but only if you're doing it for the right reasons. Let’s break down when an extension makes sense, when it doesn’t, and what you need to do before the April 15 deadline.

What a Tax Extension Actually Does (and Doesn’t Do)

Filing an extension gives you more time to file your tax return, moving the deadline from April 15 to October 15 (or a similar deadline for business entities).

But here’s the catch: It does not give you extra time to pay any taxes owed.

If you expect to owe money, you still need to estimate and pay your tax liability by April 15 to avoid penalties and interest.

An extension makes sense if:

You’re waiting on financial documents. Law firm partners often need K-1s, and some investment tax forms may not arrive on time.
You need time to finalize deductions and contributions. You may be able to contribute to a Solo 401(k) or SEP IRA before filing to reduce taxable income.
Your tax situation is more complex this year. Big financial moves like real estate sales, practice expansion, or partnership changes require extra planning.

An extension is not a good idea if:

You just don’t want to deal with your taxes. Procrastination will only make filing more stressful later.
You think it delays tax payments. Any taxes owed are still due by April 15.
You’re expecting a refund. The IRS won’t process refunds until you file, so an extension just delays your money.

When Lawyers Should Consider Filing an Extension

1. You’re Waiting on Key Tax Documents

If you’re a law firm partner, solo practitioner, or business owner, you may be relying on tax forms that haven’t arrived yet—like K-1s from your partnership or investment tax statements. Filing without these documents could mean filing an amended return later, which is extra work and increases audit risk.

2. You Want to Maximize Tax Savings

Filing an extension can give you extra time to contribute to tax-advantaged accounts and finalize deductions. If you:

Haven’t maxed out your Solo 401(k) or SEP IRA, you have until you file to contribute and claim the deduction.

Are still reviewing business expenses, an extension gives you time to ensure every deductible cost is accounted for.

3. You Made a Major Financial Move

Big financial changes mean more complexity. If you:

Switched from W-2 to self-employment and now have quarterly tax obligations

Received large partnership distributions

Bought or sold a business or major assets Then taking extra time to get your tax strategy right may be worth it.

When Filing an Extension is a Mistake

Filing an extension doesn’t always make sense—especially if you already have the information you need to file on time.

You owe money but don’t want to pay yet. The IRS will still charge interest and penalties if you don’t pay by April 15.

You’re just delaying the inevitable. If your taxes are straightforward, filing now avoids stress later.

You’re expecting a refund. The IRS won’t send your refund until you file, so delaying means waiting longer to get your money.

If these conditions don’t apply to you and the benefits align with your goals, it’s time to file.

How to File an Extension (and What Comes Next)

Step 1: Submit Form 4868 (individuals) or Form 7004 (businesses) before April 15.

Step 2: Estimate your tax liability and make a payment if needed.

Step 3: File your return by October 15 (or the extended deadline for business entities).

If you don’t owe anything, filing an extension is penalty-free—but you still need to submit your return to avoid an IRS late-filing penalty.

So Should You File an Extension?

An extension can be a smart financial move, but it shouldn’t be a default strategy. If you’re waiting on key documents or need more time to maximize deductions, it can help you file accurately and save money. But if you’re just avoiding your taxes, an extension won’t help—it just delays the inevitable.

Not sure what’s right for you? Let’s talk. At Hark Financial Planning, we help law firm partners and self-employed lawyers navigate tax season strategically—whether you're filing now or planning ahead.

Schedule a consultation today to make sure you’re making the right moves before the deadline.

Eric Scruggs