Tax Extensions

TAX EXTENSIONS, WHAT YOU NEED TO KNOW

You know exactly when the tax season comes up because you have been through it year after year. Never the less, does it always seem to be pouncing on you when you least expect it? You have been diligently saving your receipts and you have been neatly organizing all your other income tax documentation but, somehow inexplicably, you are never ready for the final two steps of income tax preparation and filing. Your anxiety increases, your stress level goes through the roof and your fear of the Big Bad Wolf a.k.a. the Internal Revenue Services (IRS) immobilizes you to a complete standstill.

Calm down, relax, take a deep breath and listen: you do not have to file your taxes right now because, the aforethought, Big Bad Wolf a.k.a. IRS is not as bad as you have always thought because ‘he’ will allow you to file for a tax extension.

Now that you feel better, we will discuss your tax extension options and some things you should know before proceeding.

If and when you are not ready to prepare and file your federal income tax return on time, you should file for a tax extension by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Income Tax Return. By filing this form you will avoid the IRS’s five percent monthly penalty charge for late filing and you will have an additional four months (until the fifteenth of August) to file your tax returns. But please be sure to file this form by the fifteenth of April which is the same due date for filing income tax returns.
You do not have to have a valid reason to file for a tax extension. As a matter of fact, the Internal Revenue Services (IRS) grants extensions to all United States taxpayers who request on or before the fifteenth of April and they require no explanations.
If you file for tax extension electronically, you should receive a confirmation immediately upon transmission from the website you are using and an official confirmation directly from the Internal Revenue Services within twenty four to forty eight hours of your submission. Print these confirmations and retain them for your records.
As mentioned before, the Internal Revenue Services (IRS) grants extensions to all taxpayers with no need for explanations. Therefore they do not reject requests for tax extensions unless an error has been found in your Form 4868 that you submitted. Be very careful and double check your entries especially of your name and the social security number. These must appear on the form exactly as they appear on your most recent Social Security Card.
Filing for a tax extension does NOT give you more time to pay additional taxes owed. You should estimate as closely as you can and pay when filing for the tax extension or as soon as possible. Any taxes owed on the fifteenth of April and not paid by then will be charged a combined rate of penalties and interest at approximately fifteen percent per year.
If you require more time to prepare and file your state income tax return, please check with your own state.
- Some states do not require that you submit a formal tax extension request, if you do not owe additional taxes, but others do.
- Some states have their own forms that need to be filed for tax extension while others will use Form 4868 that you have submitted for the federal tax extension.

Use the extra four months that have been allotted to you, by filing for your tax extension, wisely.

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