Income Tax Extension
Procrastination, unorganized records, or just sheer volume of the project at hand. Whatever the case may be, every year many taxpayers find themselves facing an April 15th deadline that they simply cannot meet. This is not the end of the world, nor will you get carted off to jail for not having your Form 1040 and its necessary Schedules postmarked by this ominous date. It may not solve all of your problems, but you do have the option of filing for an extension with Form 4868. Doing so will give you an extra six months to get your return done, pushing your deadline to October 15th.
Sending off a Form 4868 does not mean that you will be able to put off paying. If you default on payment to the IRS you can be made responsible for any penalties or interest that applies. Still, about 10.2 million taxpaying Americans will opt for an extension this year.
As long as you file your application for extension correctly, the IRS will tend not to ask any questions and grant you more time.
Reasons and Tips:
- For starters, if you owe the IRS, pay by the 15th of April. The penalty is 5% a month and all the way up to 25% of what is due if you are wondering.
- Easier way to pay: Use your credit card and file the Form 4868 at the same time.
- Form 2688 is no
- Filing an extension can decrease your chances of being audited. The IRS auditors receive quotas and the returns are filed in order in terms of filing date. So if an extension is filed, there is a chance an auditor will meet their quota before getting to the extended returns.
- Getting an extension gives your accountant or tax pro more time to get your things in order accurately. These individuals are obviously less busy in October than in April. It stands to reason they could get you more tax savings because of this fact.
- If funding a retirement plan like a SEP or a SIMPLE IRA, filing an extension can give you more time to determine how the plan will be funded.
- If paying your taxes will cause severe financial hardship, consider filing a Form 1127 by April 15.
- Make the estimated tax due very reasonable or the IRS could disallow any extension.
You can also file for an extension online. The eFile option with many tax preparation software companies will allow for a payment of the due tax using a credit card or bank account, as well as filing for an extension. If you choose to mail the request for extension, include your payment with your Form 4868 and have it postmarked by April 18, 2011
IRSExtension.com. provides a secure online solution for those individuals seeking to e-file an IRS tax extension (also known as IRS Form 4868).