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IRS Form 4868 – How to File a Tax Extension

To get an IRS extension, file Form 4868 before Tuesday, April 17

We’re down to the last week of the tax season, and if you’re not scrambling to finish your return, you’re probably wondering, “How do I get a tax extension?”

The answer is IRS Form 4868 [Application for Automatic Extension of Time to File U.S. Individual Income Tax Return]. File it by April 17 and you can get an extra six months to do your return.

You can file Form 4868 electronically. There’s no need to go through the hassle of printing it out and mailing it in to the IRS.

Plus, you can take comfort knowing that you will receive an electronic acknowledgement as soon as you e-file the form. You won’t have to deal with the stress of waiting to find out whether your request for an extension was accepted – and then scramble to get your return done if it wasn’t.

When you e-file your extension, or your actual return for that matter, be sure to have a copy of your 2010 tax return on hand. You’ll need some information, specifically your 2010 AGI, in order to verify your identity. Continue reading “IRS Form 4868 – How to File a Tax Extension”

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File your income tax extension before the April 18th income tax deadline

Consider filing a tax extension and do it online for free!

The few short days remaining before the tax deadline may not be long enough for you to get your records in order, especially if they involve such delicate matters as testimonials. In that case, you should file an extension. This is because you absolutely want to avoid the failure to file penalty as it is the most onerous. You can file a tax extension online for free right here.

Even if you don’t believe you owe any taxes, and therefore would suffer no penalty for late filing, it is strongly advisable to opt for an extension, because if it turns out you’re wrong it will cost you dearly. The penalty for late filing is 5% of the tax balance due per month up to a maximum of 25%. Filing a tax extension online will push your tax deadline forward six months to October 17th and exempt you from the penalty.

If you have a tax liability and owe the IRS money but are unable to pay in full a tax extension will also give you some breathing room to save the needed cash. However, note that you will still incur the penalty for late payment of taxes unless you can demonstrate reasonable cause to the IRS for not paying on time. The penalty for late payment is 0.5% of the amount owed for each month from the deadline until the tax is paid in full. You can avoid it by paying at least 90% of your tax liability.

In addition, the IRS will charge you interest monthly on the total owed until the tax is paid in full. The rate of interest is currently posted at 4% annually and is open to change quarterly. Note that irrespective of whether you’re exempt from the late payment penalty you will still be billed interest.

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I’m Late Filing My Tax Extension–What Do I Do!?

Every one of us has had an extension for something in our lives. Whether it is a school paper, something due at work, or our taxes, we all need a little more time on occasion. But what if you’re late with that extension? What if you were supposed to be filing your tax extension 3 months ago and you still haven’t? Then what?

This is a more common situation than you might initially think. Because filing a tax extension usually means getting rid of money–money that often you can ill-afford to spare–it’s common for people to put off filing if they can. But this is not the best way to get rid of your tax problem. This is: Continue reading “I’m Late Filing My Tax Extension–What Do I Do!?”