IRS Penalties

Tax extensions are tools to help the everyday preparer of taxes to get his return in even after the due date without being overly penalized for it. Tax penalties come into effect if you are late providing your tax return. This can be a hefty fee and often the requirement is very specific: anything after the deadline is a fee. For this reason, if you know you are going to be late in turning in your tax return, it is best to file for a tax extension which can buy you a bit more time to get things together. Yet, it is not just that simple.

What You Need To Know

If you need to file tax extensions, you will need to gather the information from the IRS and request the extension (which is not always given!) To request an extension of your federal income tax return, you will need Form 4868 which is called the Application for Automatic Extension of Time to File U.S. Income Tax Return. You can find this file right on the website of the IRS. You can simply download it from the website and mail it in (if you have enough time to do so) or you can file it electronically right online, making it easier to get it to them quickly.

With a tax extension, you can gain up to six months additional time for your tax return. This does not mean that you have to wait six months and it is unlikely that you will be able to keep getting extensions. Therefore, plan to complete your return in the quickest time possible after you have been allowed the extension. To get the extension at all, you must file the extension form before the due date of the tax return. This is usually April 15th, but can change due to the calendar day that it falls on. Do not wait until the last minute to do this, though, as the website can easily become overloaded and not allow you to access what you need.

There are some special rules in place for some people that can help them to get the extension or help them to get a longer time to file their return. For example, those that are living outside of the United States or those that are out of the country when the six month extension expires are able to get a lower amount of time. In addition, those that are serving in a combat zone or other hazardous areas are able to get a further extension.

Always talk to your tax professional about tax extensions before simply filing them. Be sure that you understand the implications that can sometimes come with filing!

IRS Penalties |