As the deadline to file taxes quickly approaches, there are many people that would prefer to file a tax extension with the IRS. If you’re one of those people — whether you forgot or you don’t have enough time, a tax extension is the perfect option for you. Here are a few things you should know about filing for an extension.
What is a tax extension?
If you can’t file your taxes by April 18th, don’t panic! Filing for a tax extension can be a great way to buy yourself extra time if needed. With an extension, the due date to file your taxes now becomes October 16th – six months from the original date. Remember that filing a tax extension doesn’t extend the amount of time you have to pay any taxes owed. If you owe money, the IRS expects you to pay in order to avoid penalties and interest. Be sure to check with your state for specific filing deadlines, as some of them don’t follow the official tax deadline.
How do I file for an extension?
To apply for an extension, you must submit IRS Form 4868 by the due date of your tax return. You’ll need to provide your name, address, Social Security Number or Employer Identification Number, and estimated tax liability. Once you submit the form, the IRS will grant you an automatic six month extension to file your taxes. If you’re requesting an extension because of a special circumstance, such as being overseas on military service, you’ll need to provide additional documentation.
What happens to my tax refund if I file for an extension?
If you file for a tax extension, don’t expect to receive your refund anytime soon. Like usual, you will have to wait for the IRS to process your tax return. The IRS estimates it’ll take 21 days after that before they issue your refund. This means that if you file on the 16th of October, you can expect to receive your refund on the 6th of November at the earliest. Furthermore, if you’re expecting a large refund, it could take even longer than 21 days for it to be processed. Additionally, it’s important to note that tax extensions are only valid if you pay what you owe by the 18th of April, otherwise the extension will be void and you’ll be faced with penalties and interest.
What happens if I don’t file my return by the extension deadline?
Filing an extension for your taxes is a great way to buy extra time to get your taxes done, but what happens if you don’t file by the extension deadline? First, understand that not filing by the extension deadline is the same as not filing at all. This means you can be hit with late filing penalties and interest on the taxes you owe. You can also be hit with a failure-to-file penalty which can be as high as 25% of the taxes due. In addition, if you are due a refund, you will not receive it until your return is filed, even if you file after the extension deadline. To avoid these penalties, make sure to file your return by the extension deadline.
What if I’m unable to pay my taxes on time?
Remember that tax extensions do not extend the time you have to pay any taxes owed. If you don’t think you can pay your taxes by the due date, you should apply for a payment plan. This will allow you to make smaller payments over time to pay off your debt. For example, the IRS offers short-term plans, long-term plans, and an Offer in Compromise. Additionally, the IRS offers penalty relief if you’re unable to pay your taxes on time due to certain circumstances. If you think any of these apply to you, you should research the requirements and they will work with you to find a solution.
Where do I send my tax extension application?
To apply for a tax extension, you will need to submit Form 4868 through the IRS website, by mail, or through a professional tax preparer. If sending it by mail, the correct address will be listed on the form and it depends on where you live. You should also attach any required payment and/or estimated tax payment with your application. Once your application is received, the IRS will send you a confirmation e-mail or letter verifying that your request has been approved. It is important to note that if you do not receive confirmation, your request has not been approved and you should contact the IRS directly.
If any of this is overwhelming and you need to file an extension with the IRS, please do not hesitate to contact us for help.