What Does It Mean to File a Tax Extension?

| April 13, 2015 | 0 Comments

file a tax extensionAren’t able to submit your income tax return by the April 15 due date? Taxpayers can file a tax extension  easily get an automatic six-month extension of your time to submit the income tax return. However, taxpayers are careful, there is a drawback. An extension is simply an extension on the time to submit the return– it is not an extension on the amount of time to pay.

Pros and Cons of Filing a Tax Extension

Most people think the reason to file a tax extension is because you are really pressed for time or have a colossal problem that forces you to postpone doing your taxes. Filing a tax extension may be looked upon as a character weakness because you can’t

Taxpayers are obligated to approximate the amount of tax obligation that will be owed with the income tax return and mail payment with the extension to avert failure-to-pay fines. These fines and interest can accumulate from April 15 up until the tax is paid, despite the extension. If a balance is still owed when the actual income tax return is submitted, at the very least the fines and/or interest will have been reduced.

If taxpayers are not able to submit their income tax return by April 15, there are a number of approaches to ask for an automatic extension of time to submit an individual return.

Most registered representatives and other tax experts can e-file the ‘Application for Automatic Extension of Time to File US Individual Tax Return‘ for taxpayers. Or the application could be gotten on the IRS web site (search for Form 4868), which could be printed and after that sent by mail to the IRS. Whether taxpayers make use of a tax expert or print the application on their own, all or part of the estimate of the income tax due may be paid with a check or credit/debit card or by utilizing the Electronic Federal Tax Payment System.

Details concerning mailing payment can be located on Form 4868. The price charged can depend upon the amount of the payment. Make sure to note the verification number supplied upon payment.

If a taxpayer approximates that he is going to owe taxes and is not able to pay, it is essential that they submit their returns on time. Failure to file fines will be determined in addition to failure to pay. So, to lessen fines, it is usually best to submit the return or an extension and pay as much as practical with either. Payment plans might be set up later on.

If you get a notification from the IRS at any time throughout the year, call your tax preparer right away. If you did not work with one to prepare your income tax return, you ought to then get in touch with a certified tax expert. Just enrolled agents (EAs), CPAs and lawyers have limitless rights to represent you before the IRS. The term “enrolled agent” shows that an EA can function as your representative before management levels of the IRS– implying they can speak with or contact the IRS in your place.

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If you are unsure about if you need to file a tax extension then file one anyway. It can’t do any damage to you filing a return at a later time.

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