File A Tax Return Extension OnlineWith the tax filing season approaching and procrastinators like myself lingering around the water fountain thinking about preparing my tax return, a tax extension can be a necessary tool to help with avoiding IRS penalties.
When the end of tax season closes in many of us scramble to file our tax return. This is the time when we tend to ponder the option of whether it makes sense to file a tax return extension.
One thing is for sure, you do NOT want to ignore the tax filing deadline! That can add up to financial burdens you simply wont like!
Everyone’s tax filing situation varies, but penalty and interest charges can be hurtful to any of us.
It’s not necessarily a bad idea to plan on filing a tax extension annually, especially if you often don’t have all your ducks in a row by the April 15th due date.
Filing a tax return extension is very easy to do. Simply fill out tax extension form 4868 by April 15 either electronically or using the pencil and paper method, then submit it electronically or via snail mail to be automatically granted a six month extension to Oct. 15.
The IRS does NOT need a reason for why you’re requesting an extension.
Things to Know About Filing a Tax Extension
Filing a tax extension is actually far more common than most people might think. Over 10 million taxpayers request an automatic tax return extension each year. However, there are some major factors, misunderstandings, and questions that may come up about filing a tax return extension. Here’s what you should know:
You Still Must Pay Any Taxes Owed by April 15th:
By filing a tax extension with the IRS you are allowed to push you tax return filing deadline back to Oct. 15 and avoid IRS late-filing penalties so long as you have filed for the tax return extension by April 15. However, you must pay your estimated tax bill by April 15 to avoid penalties and interest charges.
A tax extension only pushes back the due date for your tax return paperwork to be filed. If you owe additional taxes, you are required to estimate the amount, then file your extension and make your payment by the April 15th due date.
What Happens If You Don’t Pay your taxes by April 15?
You is going to be sorry! lol... It's actually not very funny at all. Not paying your taxes is the same as if you file a return by April 15 but fail to pay the taxes you owe. You will be liable for penalties and interest charges that can add up quickly.
The IRS requires taxpayers to pay at least 90 percent of their tax amount owed in order to avoid late fees. If you pay less, you may end up owing a monthly 0.5 percent penalty on the unpaid balance. A maximum penalty amount exists.
What Are Good Reasons for Filing A Tax Return Extension?
Even if you pay your taxes by April 15, you may find benefits in applying for a tax extension. Several cases may make sense of tax extension filing.
- Filing a tax extension makes sense if you’re a procrastinator like me. Been lazy or too busy? A tax extension will give you more time to get all your paperwork in order. However, if the IRS owes you a refund you won’t face a late-filing penalty. In this case it is wise to file your tax return ASAP so that you don't extend your interest-free loan to Uncle Sam.
- Another main advantage is that it gives you more time to get your tax return prepared. This is especially useful for those who receive key forms late.
- Last-Minute Tax Changes That Can Save You Money. Taxpayers who are invested in partnerships or S corporations generally do not receive their K-1s from these entities until after April 15,so filing late may make more sense.