File Tax Extension
No need to worry if you can't make the April 15 tax filing deadline to file your federal tax return.
If your taxes aren't done, you're not alone. Fortunately you can file for an automatic six-month extension from the Internal Revenue Service to buy more time.
Need to File a Federal Tax Extension? Here's How To Do It Quick and Easy!
The April 15 deadline for filing your tax return can sneak up on us procrastinators. However, this deadline can be avoided by completing Tax Extension Form 4868 by April 15, to mail in or submit online at Free File or the IRS's website.
To file an extension, you will need the following information
|Your Social Security number|
|Your estimated tax liability (amount of taxes owed)|
|The amount of taxes you're paying with the extension application|
Filling out Form 4868 gives taxpayers an extra 6 months, until Oct. 15 to file their tax return with the IRS.
"The worst thing to do is nothing"
What you need to keep in mind is that the late-filing penalty can be up to 10 times greater than the late-payment penalty.
The penalty for filing late is 5 percent of any amount of additional taxes owed for each month your tax return is late, up to a maximum of 25 percent.
The late payment penalty is 0.5 percent of any additional tax owed for each month (or fraction thereof) these taxes remains unpaid, up to a maximum of 25 percent.
Make Sure You Pay Your Taxes On Time!
By filing an extension you get more time to prepare and submit your tax return, not more time to pay any taxes owed. Strait up! you are NOT off the hook for paying any taxes you still owe by April 15.
All an extension does is get you more time to get your returns prepared and filed.
It's very important not to underestimate the amount of money you still owe Uncle Sam. That boy has no quam with charging you interest and penalties. Trust me, you do not want to be burdened with additional fees from the IRS.
You can however request an installment plan if you simply don't have the funds to pay on time. With this option, taxpayers are able to make monthly installment payments on their tax amount still owed. It's important to keep in mind that there are fees associated with installment plan payments.
The IRS allows taxpayers who owe $50,000 or less in combined taxes, penalties, and interest charges can use the IRS online payment agreement to set up a monthly payment plan for up to 72 months. However, you need to make sure you apply for this prior to April 15th tax filing deadline to avoid any additional penalties.
Things To Know About Filing A Tax Extension
When is a tax extension application due? Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return must be filed no later than the normal due date for your tax return, on April 15th.
What is the purpose of a tax extension? A tax extension grants you more time to file your tax return (6 more months, till Oct 15th). However, failing to pay any taxes owed on time will result in a penalty and interest charges. Filing for an extension does not relieve you from paying your taxes on time.
What are the penalties for not filing on time? The penalties for not filing are generally greater than simply failing to pay. Typically 5 percent per month of unpaid taxes (up to a maximum of 25 percent) for a failure to file, and a penalty of 0.5 percent of any unpaid taxes each month for failure to pay.
Filing late without a tax extension. If you did not file a tax extension with the IRS or pay your taxes more than 60 days after the due date — or, if you did file for an extension and you pay your taxes more than 60 days after the due date — you face a financial penalty equal to either $135 or 100 percent of the unpaid tax, whichever is smaller.
Special penalty exemption circumstances. You may qualify for an exemption from financial penalties associated with late tax filing if you are facing or have recently faced catastrophe in your life. The IRS has granted leniency in special circumstances when taxpayer are face with extraordinary hardship.