Simple Steps to File For Tax Extension

Many will deal with a lot of aggravation, stress, and worry as tax season approaches. In some instances, the tax return you are preparing may be a very complicated one. You might not even have all the elements needed to properly file the return by the April 15th deadline. This is certainly not a positive situation because filing late means a lot of additional fees. Most significantly, you would be hit with a failure to file penalty which could drive up your tax bill. (The amount is 5% of the balance due per month to a maximum of 25%) Thankfully, there is an option available to those that need a little extra time. This option comes in the form of filing a tax extension.

And do not fret. The process is much easier than many would be led to believe. In fact, you can be guaranteed an automatic filing extension provided you take the necessary steps required for filing the extension.

For most individuals and corporations, all that is required is you need to file IRS Form 4868. This form is titled the “application for Automatic Extension of Time to File U.S. Income Tax Return.” Is this a complicated form? Actually, it is one of the simplest forms you can fill out. All you really need to provide on the form is basic personal information. That is, you will provide you name, address, social security number, an estimation of the tax you owe, and any estimated tax payments you may have made. You would fill this information out and send it to the appropriate address of the service center/IRS lock box that serves your geographic area.

Please be sure to send this tax extension form prior to the April 15th due date. If your form is sent after April 15th, it will not be accepted. If it is sent prior to the 15th, the odds are strong that the extension will be approved. Once approved, you will get a ‘reprieve’ from filing your income tax until October 15th. That means you will end up with a six month automatic extension. There is, however, only one extension provided per tax year so you need to get your return in by October 15th. There are few exceptions to this. Most notably, those that may be out of the country beyond the six month period or are serving in the military in a combat zone may be given additional time. For all others, the October 16th deadline will be locked in stone.

Please keep in mind that even though your return is given an extension, you are not given an extension on the amount of money you owe to the IRS. Basically, you need to have all your taxes paid by the 15th if you wish to avoid penalties and interest. (While an extension will eliminate a failure to file penalty, you will still be hit with a failure to pay penalty.) If you are unable to make such payment by April 15th, you should inform the IRS and work out an advanced payment plan. This way, you can avoid any adverse actions. How stringent the IRS will be in terms of collecting such income tax will be based on your compliance with the law. In short, if you are unable to pay on time, contact the IRS and inform them of your situation.