The IRS allows taxpayers to file for an extension if they cannot complete their tax return by the April 15th deadline. This will give you an additional six months to file your return. However, taxes must be paid by April 15th to avoid penalties and interest.
To file for an extension, you must complete and submit IRS Form 4868. This form can be found on the IRS website or at your local post office. Once you have filled out the form, mail it or submit it electronically. Your extension will be granted, only if the IRS receives your Form 4868 by the April 15th deadline.
If you owe taxes and cannot pay them by the April 15th deadline, you can apply for a payment plan using IRS Form 9465. This form can also be found on the IRS website or at your local post office. Once you have completed the form, simply mail it or submit it electronically. The IRS will then work with you to set up a payment plan based on your situation.
It is important to note that even if you file for an extension or a payment plan, you will still be responsible for any penalties and interest accrued on your unpaid taxes. Therefore, it is always better to pay your taxes in full and on time, if possible.
What is a tax extension, and why would you need one?
A tax extension is an additional six months that the IRS allows you to file your taxes. This extension is granted automatically if you request it, and there is no need to explain why you are requesting the extension.
There are a few reasons why you might need a tax extension. Perhaps you’re waiting for some final paperwork to come in the mail so that you can complete your return. Or, you might have a complex tax situation and need more time to figure everything out. If you need more time to file your taxes, a tax extension will give you the extra time you need.
It’s important to note that an extension to file your taxes is not an extension to pay any taxes you may owe. If you think you will owe taxes when you file your return, it’s necessary to estimate the amount and send in a payment with your extension request. This will help you avoid penalties and interest charges for late payments.
How to Request a Tax Extension
Requesting a tax extension is easy and can be done in several ways. The easiest way to request an extension is through the IRS website. You can also request an extension by mailing Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return).
If you are requesting an extension because you think you will owe taxes, include a payment for the estimated amount due along with your extension request. You can make this payment via a credit or debit card or electronic funds transfer.
Once you’ve requested an extension, you will receive confirmation from the IRS indicating that your request has been granted. Then, you will have crucial time until October 15th to file your return.
What if I don’t Request a Tax Extension and Miss the Deadline?
If you don’t request a tax extension and you miss the April 15th deadline, you will be subject to late filing penalties. The typical penalty for filing late is about 5% of the unpaid taxes every month or part of a month that the return is late, up to a maximum of 25%.
In addition to the late filing penalty, you will also owe interest on unpaid taxes. The interest rate is currently 4% and is compounded daily. If you fail to pay your owed taxes, still you have to file your income tax return as scheduled and get in touch with the IRS to converse with payment options. The IRS has several programs that can help taxpayers who are struggling to pay their taxes, and it’s better to contact them and make arrangements than to ignore the problem simply.
If you need more time to file your taxes, you can request a tax extension from the IRS. An extension will give you an additional six months to file your return, but it’s important to note that it’s not an extension to pay any taxes you may owe. A tax extension is great, but paying our taxes in time is much better.