Extension


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Extension

Voluntary arrangements to restructure a firm's debt, under which the payment date is postponed.

Extension

1. In options, the expiration date. Occasionally the parties to an option contract will agree to extend the expiration to a certain date in the future.

2. In taxes, the day that one must file one's return if one asked the tax agency for more time to do it. For example, in the United States the deadline to file tax returns is 15 April. If a taxpayer is unable to make this deadline, he/she may ask the IRS for an extension until 15 October. In this case, 15 October is the extension date.

3. In an offer for bids on a contract, the date to which a deadline is lengthened. If there is either a lack of interest or no good bids on a contract, the company or government offering it may extend the deadline to allow other companies to decide whether to make a bid. This second deadline is the extension date.

extension

An agreement to defer the time for doing an act or for termination of a lease.

Extension

A provision thta allows additional time to perform an act required by the tax law or by regulation. The term is used most often when referring to an extension to file the tax return, but it also applies to extensions for making available elections.
References in periodicals archive ?
A four-year extension, the maximum allowed, would take O'Neal through 2007 and his 35th birthday.
If they file this form to obtain an extension to file, they should file by Form 709's regular due date (or by its extended due date, if a previous extension was granted).
Close also was upset that the City Council approved a last-minute demand that Valley VOTE waive its right to sue the city before the city takes action to seek the extension.
But the Treasury Department said this week that it would run out of such options March 21, and without an extension, the government would be forced into default on bonds and other obligations.
The IRS has issued final regulations on requesting extensions of time to make certain elections and the standards it will use to grant those extensions.
McMahan argued that he had reasonable cause for failing to file a timely request for extension; he relied on his tax agent's assurances that the agent filed the extension and that this reliance was an exercise of ordinary business care and prudence.
6151(a) provides that, as a general ride, the payment due date is the same as the due date for filing the return, determined without regard to any extension of time for filing the return.