What is the primary purpose of a tax return?

The primary purpose of a tax return is to report financial information for tax purposes. This involves detailing income, expenses, and other financial transactions that affect an individual's or corporation's tax liability. Through this reporting process, taxpayers provide necessary information to the tax authorities, enabling accurate assessments of how much tax is owed or any refunds that may apply based on overpayment or tax credits.

This statement reflects the foundational principle of taxation, where tax returns serve not only as a means of communication to tax agencies but also ensure compliance with tax laws. By disclosing all relevant financial data, taxpayers fulfill their obligation to report income accurately, which is essential for the correct calculation of tax liabilities and potential refunds.

Considering the other choices, while applying for a tax refund is a potential outcome of filing a tax return, it is not the primary purpose. Similarly, estimating future tax liabilities is not fulfilled through filing a return; tax returns are retrospective, reporting on prior period activities rather than predicting future obligations. Lastly, while requesting an extension pertains to the management of tax deadlines, it is not the fundamental function of a tax return itself but rather a procedural step related to the filing of the return.