Tips On How To File For A Tax Extension

By Author: Lamar Rummans
Total Articles: 1
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Before knowing how to file for a tax extension, it is better to know about tax returns and when and why tax extensions are used. A tax return is a document filled and presented by the taxpayer himself stating his annual income which can be used as a tax liability by the IRS. The deadline to submit the tax return form 1040 is April 15, beyond which the taxpayer is subject to penalties and additional interests. However, if one is neither ready with the tax return, nor willing to pay up the hefty amounts of penalty, tax extensions is the best suited solution under these circumstances. It allows a taxpayer to take an additional 6 months i.e. until October 15 to file his tax return. Although, the last date to pay up the tax owed to IRS remains April 15 even after filing a tax extension. In case a person fails to file returns by April 15 and also doesn’t file for an extension before the same date, he/she will have to pay a minimum of 5% or a maximum of 25% of the balance due as a penalty. The penalties and interest keep accumulating every month until the tax returns are filed.

Suppose you had a serious health crisis or didn’t ...
... have much time to focus on your taxes because of your job, the reasons for failing to file tax returns are many. Suppose you are a businessman and you need a little more time to gather all your documents or you are recovering from a major surgery and need a little more time to take a look at your assets and income, by filing a tax extension you are awarding yourself the time you badly need to file your tax return and also avoid penalty. One of the very advantages of tax extensions is that you get a lot of time to review your income, gather your documents and file a tax return such that your tax history looks good. Failing to do so and not paying the taxes within the given time can make your tax history look bad which in turn makes it difficult to gain approval for loans, competitive premium rates on insurance policies, visa etc. Buying time will also help you to review your income better and come up with a tax return that can get you refunds on your tax payment.

Below is a list of points to know how to file for a tax extension.

• The form 4868, the tax extension form can be obtained by the IRS on demand through the post or can be easily downloaded for free online.

• The form can be either filed and sent via mail to the IRS or filed online, the latter being the most easy and convenient method.

• With IRS certified e-file providers it is easy to fill the form 4868, hardly taking 5 to 6 minutes. Moreover, you don’t need any additional documents except your personal information to fill up the form online.

• One more advantage of e-filing is that the status of the form filed and sent can be tracked. Moreover, these are not lost as in the traditional mail where the forms used to get lost with other mail.

• The most preferred way to file a tax extension with the IRS is online and through an authorized e-file provider one can also receive confirmation mails when the extension is accepted and approved.

This Article was written by Lamar Rummans. Visit our site at http://www.deathbytaxes.net/ and http://www.deathbytaxes.net/category/tax-extension/ for more details.