An Overview of IRS Tax Extensions: What You Need to Know
Filing taxes is a chore that no one looks forward to doing, but it’s a necessary responsibility for all individuals and businesses in the United States. However, there are times when you may find yourself in a bind and unable to file your income tax returns on time. In such circumstances, requesting an IRS extension can provide you with the extra time you need to file your taxes.
In this article, we’ll explain what an IRS extension is, who can apply, the deadline for filing an extension, how you can apply, what happens when you file an extension, and more. We’ll also discuss the pros and cons of filing an extension and common mistakes to avoid.
What is an IRS Extension?
An IRS extension is a request to the Internal Revenue Service (IRS) to extend the deadline for filing your tax returns. When you apply for an extension, you’re given an additional six months to file your taxes. So if the original deadline for filing your tax return is April 15th, requesting an extension gives you until October 15th to submit your tax return.
Who Can Apply for an Extension?
Anyone can apply for a filing extension. Individual taxpayers, businesses, sole proprietors, and partnerships can all request an IRS extension. However, even though anyone can apply for an extension, there are certain criteria that must be met to qualify for an extension.
The main criterion is that you must be able to show that you have good cause for requesting an extension. Good cause can be defined as circumstances beyond your control that prevented you from filing your income tax return by the original deadline. Some examples of good cause include:
– Natural disasters or other emergencies that occurred close to the filing date. This could include floods, fires, hurricanes, earthquakes, etc.
– Serious illness or injury that prevented you from preparing or filing your tax return.
– Death of a family member or other individual close to the filing date.
If you can show that you have good cause for requesting an extension, the IRS will grant your request.
What is the Deadline for Filing an Extension?
The deadline for filing an extension is the same as the original deadline for filing your tax return. For example, if the regular deadline for filing your tax return is April 15th, you must submit your extension request by this date.
However, it’s important to note that filing an extension only extends the deadline for filing your tax return, not the deadline for paying your taxes. If you owe taxes to the IRS, you must still pay them by the original filing deadline. Failure to do so may result in penalties and interest charges.
How Do You Apply for an Extension?
Applying for an IRS extension is a simple process. You can apply by completing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form can be completed online or in paper format.
If you’re filing electronically, you can submit Form 4868 through your tax preparation software or an authorized e-file provider. If you’re filing a paper , you must mail it to the IRS on or before the original filing deadline. The mailing address can be found on the instructions for Form 4868.
What Happens When You File an Extension?
When you file an extension, you’re given an additional six months to file your tax return. This means that if you request an extension before the April 15th deadline, you have until October 15th to file your return.
However, filing an extension doesn’t give you an extension on paying your taxes. If you owe taxes to the IRS, you must still pay them by the original filing deadline to avoid penalties and interest charges.
It’s also important to note that while filing an extension may provide you with additional time to file your tax return, it doesn’t protect you from penalties or interest charges if you owe taxes and fail to pay them by the original filing deadline.
Pros and Cons of Filing an Extension
Pros:
– Provides extra time to file your tax return
– Easy to apply for
– You don’t need to provide a reason for the extension request
– No penalty for requesting an extension
Cons:
– Does not extend the deadline for paying taxes
– If you owe taxes and fail to pay by the original deadline, you may face penalties and interest charges
– If you make a mistake on your extension request, it may delay the processing of your tax return
Common Mistakes to Avoid
Here are some common mistakes to avoid when filing an IRS extension:
– Failure to file for an extension on time. Make sure you submit your extension request by the original filing deadline.
– Failure to pay taxes by the original deadline. Even if you file for an extension, you must still pay any taxes owed by the original filing deadline.
– Incorrect or incomplete information on your extension request. Double-check all information before submitting your extension request to avoid delays in processing.
– Assuming that an extension will protect you from penalties and interest charges. While an extension may provide you with additional time to file your tax return, it doesn’t protect you from penalties and interest charges if you fail to pay your taxes by the original deadline.
Conclusion
Filing an IRS extension can be a helpful tool for individuals and business owners who need extra time to file their tax returns. However, it’s important to remember that filing an extension doesn’t extend the deadline for paying your taxes, and failing to pay taxes by the original deadline can result in penalties and interest charges.
If you’re considering filing for an extension, make sure you provide accurate and complete information on your extension request, and pay any taxes owed by the original filing deadline. By doing so, you can avoid common mistakes and ensure that your tax return is processed as quickly and efficiently as possible.
Applying for a IRS Extension
Any taxpayers who may need additional time to file the IRS federal income tax returns can file Form 4868 which is a request for an automatic IRS extension. This can be done through the IRS Free File system. Using Form 4868 will give an IRS extension for the tax return that lasts for an additional six months or until October 15 to completely file the federal income tax return.
A taxpayer can file the request for an IRS extension through the traditional Free File or instead the Free File Fillable Forms as well. Using the Free File system to prepare as well as electronically submit Form 4868 is free to all taxpayers.
Furthermore, a taxpayer can also use any paid preparers or purchased software in order to electronically submit and file Form 4868. A hard copy paper version can also be made available to download from the Internal Revenue Service website site, alongside other tax forms. However, the Internal Revenue Service only sends an acknowledgement that the agency has in fact received the request for the IRS extension, if an individual taxpayer chooses to use the e-file or Free Files to handle the request.
It is important to remember that an IRS extension is not to be used in order to extend the time to pay. A taxpayer must estimate the tax liability and then pay any balance due upon requesting the IRS extension. There are many payment options available, for example: credit card, check, and electronic funds withdrawal.
If a taxpayer is unable to pay the total balance that is due from the return, he or she should attempt to pay as much of the balance as possible and then proceed by contacting the Internal Revenue Service about setting up an installment plan. Even if the individual is unable to pay the balance that is due, it is still very important to either completely file a return or request an IRS extension in order to avoid the Internal Revenue Services’ failure-to-file penalty.
Every year, the Internal Revenue Service expects to receive millions of IRS extension requests, for example 10 million in 2010. Some individual taxpayers will automatically receive IRS extensions to file. These people include military personnel who currently are serving their country in a combat zone and have 180 days after leaving the area of the combat zone to file their tax returns. Also, victims of any recent natural disasters in given federally declared disaster areas are also given the extra time.
Important Tips:
• The Due date for filing an extension is April 18 for 2011 at midnight of the local time zone
• Almost everyone qualifies for an IRS extension and the IRS does not require an explanation for the extension. Most rejections come from incorrect submissions of name or personal information.
