If you are thinking about filing an extension for your taxes, you need to make sure that you understand how the process really works before you go through with your extension.
This Year's Tax Date Is Extended
Traditionally, tax day is April 15th. However this date can be moved around a little bit based on when the IRS releases certain paperwork and guidelines. This year, the IRS extended the deadline for filing taxes to April 18th, 2016, so you have three additional days to get everything together.
You Still Have To File By April 18th, 2016
If you plan on asking for an extension on your taxes, you have to get that paperwork in by April 18th. The IRS expects all taxpayers to either file their taxes or ask for more time by the tax filing deadline.
You Can File Electronically
To request an extension, you have to send the Form 4868 to the IRS. You can print out this form, mail it in, and wait to get a response via snail mail from the IRS. Or, you can submit Form 4868 electronically through the IRS website. You will not have to pay any fees if you file directly through the IRS website. One of the benefits of filing online is that you will get an email within a couple of days that will confirm your extension from the IRS .
Your Extension Could Be Denied
Most people are granted extensions. However, the IRS does not have to grant your request. Make sure that all of your information is correct on your form before you submit it. If the information is incorrect, you could be denied your extension and fax a failure to file penalty as well. So, double and triple check your Form 4868 before you submit it.
You Still Have To Pay On Time
Many people wrongly assume that when they file for an extension, they are getting an extension on paying their taxes as well. However, that is not true. When you file for an extension, you are getting an extension on completing the paperwork, you are ot getting an extension on meeting your tax obligations.
Although you may not know exactly how much you owe since you still need time to complete your taxes, have your tax account come up with an estimate of how much you owe. Then, submit your estimated tax payment on April 18th, 2016 to the IRS.
Once you complete your taxes, send in the difference that you owe right away. The sooner you send in the difference, the less interest, fees and penalties you will owe. If you overestimated your taxes, when you actually file, you will get a refund check from the IRS.
You Have To File An Extension Separately With Your State
If you are not ready to file your state taxes either, you are going to need to figure out the process for filing an extension for your state. Filing an extension with the IRS only applies to your federal taxes, not your state taxes.
If you need more time to get your taxes done, make sure that you file for an extension by April 18th, 2016 and send in your estimated taxes by that date as well. If you need help, talk to your tax accountant. For more information, contact a company like Sandoval Tax.Share