The IRS tax extension grants you the permission to reschedule or postpone tax day for six extra months. Even if you owe taxes, the IRS will still give you a tax extension.
How Can I Qualify For a Tax Extension?
Yes. Nearly everybody can qualify for a tax extension. The IRS does not even ask for any special reason as to why you are requesting for a tax extension. Rejection of tax extension normally occurs due to submitting wrong details and information.
Is it Necessary?
Usually, under some circumstances, a tax extension is absolutely unavoidable. Nonetheless, other people have a bad habit of filing for an extension every other year even though it is not necessary. Here are some of the reasons why one would require a tax extension:
1. If an emergency crops up at the last minute during tax season then you should file for a tax extension. You will therefore have enough time to deal with your personal or financial emergencies without having to worry about managing your taxes.
2. You will also need a tax extension if you are not in the United States when your tax return is expected. You can get your six months extension. Furthermore the IRS can give you two additional months if you explain your situation to them.
3. In case your tax professional is booked all through until April 15, you can file for a tax extension rather than filing your own returns and making risky mistakes. As soon as the madness of tax season settles down, you can make an appointment with your tax advisor and handle all your tax issues.
What Options Do I Have?
The filing of tax returns has to be done by midnight of April 15. However the IRS has options for those who require a little more time to gather the information that is essential for completion of their individual returns. Here are some of the options available:
If you find yourself having to pay more taxes, consider working out a budget plan so that the amount you pay equals the amount you owe:
- All about budgeting: budget planning n’ management
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1. Online Tax Extension
Those who have access to either the computer tax preparation software or a tax professional can file an electronic Form 4868. Normally there is a fee charged for this filing. Carefully follow the software’s instructions when filling the online form. However, the software firms caution taxpayers not to wait until the last minute to file extensions or returns in case of any problem.
2. Credit Card Tax Extension
Both Federal and State tax payments are accepted by these credit card companies. You should directly point out that you are paying for an extension so that the credit company can notify the tax authority of the payment. This means that filling a paper extension is not necessary.
3. Conventional Tax Extension (Mail)
As long as you put the Form 4868 in the mail by midnight April 15, the extension will be automatic for only 4 months. This means that you don’t have to come up with any explanations for late filling. On the other hand, some states only accept the federal extension while some need their own extension forms.
4. Telephone Tax Extension
A telefile platform has been introduced by the IRS. This is a service for taxpayers who want to request the 4 month automatic extension. The information required during the phone call is provided on the Form 4868. Call the IRS directly at 1-888-796-1074 and request for a tax extension. The IRS will give you a confirmation number once the call is complete.
On the grounds that you apply for a tax extension on or before April 15 and then you file your tax returns by October 15, you will not incur any penalty charges. Remember, a tax extension should only grant you enough time to file, not time to pay. Every year millions of people file for tax extensions. Avoid the chaos of this tax season by sharing this article with friends on Facebook. You will help people to avoid late penalties and learn about their tax extension options.
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