The deadline for filing taxes is approaching soon, and this calls for staying on the top of your tax game. Although the Tax Day comes just once in a year, it can be very pressurizing, especially if you are not ready with your filing obligations. Tax filing can greatly affect the bottom tier of your financial management, and this makes it extremely important that you are aware of the options laid out by IRS for tax filing and extensions.
Taxpayers who cannot meet the deadline for tax filing and need more time, the IRS tax extension is a good option to consider. Under this extension, taxpayers are allowed more days even after the deadline has passed. Typically, the IRS tax extension grants an automatic six-month extension in most states; however, this duration can differ.
The IRS tax extension allows one to request extra time to file the tax returns, but it does not permit one to extend the due date for the payment of taxes they owe. The amount must be paid within the deadline or it leads to the incurring of interest on the amount payable. Remember, if you do not pay up before the due date, you will be slammed with penalties and interest. The penalties can add up quickly and cause an unnecessary financial burden.
Who is liable for an IRS tax extension?
Under the IRS tax extension, any taxpayer is granted an extended period to file tax returns. Regardless of one’s income or source of income, an extension can be obtained on tax filing. A business or individual may not have all the required information in place before the assigned date and thus, the IRS tax extension option has been designed. Individuals who apply for an IRS tax extension usually involve people who are in the middle of a complex financial situation and require more time to undertake the assembling of the required documents and files.
People falling under certain categories are automatically granted an extension by IRS to file their tax returns. These categories include those who live abroad, individuals serving in combat zones, and victims of a natural disaster.
Steps involved in requesting an IRS tax extension
For those individuals who realize that they cannot file their tax returns within the given due date, they must immediately act to file a tax extension. Acting quickly will help save time and process the tax returns faster. However, like with any other tax request, there is a time limit that is allowed for tax extension by the IRS. Thus, one must be aware of the situation before deciding if they can file returns on time or they require an extended period. If there is a feeling that tax filing cannot be carried efficiently in time due to personal reasons, then it is best to file an extension. Seeking the advice of a professional or directly contacting the IRS will help in getting a better direction as to what is the best way to go about.
Although one gets extra time on filing for returns, he/she must put in enough effort and time to make sure that the amount is paid for the liable tax. Before sending in a request for a tax extension, it is better to accurately calculate the amount one owes. You can then pay it with the extension request. A tax estimator is a good tool that can be used to simplify the process of tax payments.
There are several ways through which one can request an IRS tax extension. The simplest way to get an extension is by using the file link on the IRS website. This link enables anyone to access the Form 4868 online. Taxpayers must be able to give an estimate of the liable tax and make the due payment. Other than the official website of the IRS, taxpayers can choose to fill the extension form through a paid tax preparer, tax-preparation software, or even a hard-copy of the form 4868 obtained from the IRS website. It is better to consider all your options and choose the right one for yourself before going ahead. However, for those looking for convenience, the electronic form is the easiest mode of extension application and is widely used by taxpayers. If one files an extension online, there are quick ways to pay off the balance he/she owes. The Electronic Federal Tax Payment System is a safe and convenient way for taxpayers to pay their due. One can also choose to pay via the electronic fund withdrawal and credit or debit card options.
Do not use IRS to procrastinate filing your returns
The option of IRS file extension should only be used when a taxpayer cannot meet the deadline. It helps evade the penalties for filing a late return and incurring penalties. Availing the IRS file extension option without a valid reason will only lead to delay in the tax return filing process and hamper tax refund.
Do you have to pay for getting an IRS tax extension?
There is no fee associated with getting an IRS tax extension form; however, you must include all tax payments that are due to avoid penalties from accumulating.
