Please be aware that:
- An extension of time to file your return does not grant you any extension of time to pay your taxes.
- You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.
- You must file your extension request no later than the regular due date of your return.
There are a few different ways taxpayers can file for an extension.
- IRS Free File. While taxpayers can use IRS Free File to prepare and e-file a free extension request. The IRS must receive an e-filed extension request by midnight on the day of the filing deadline.
- Form 4868. Taxpayers can request an extension using the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
- Electronic payment options. The IRS will automatically process an extension of time to file when taxpayers pay all or part of their taxes electronically by the April deadline. They don’t need to file a paper or electronic Form 4868 when making a payment with IRS Direct Pay, the Electronic Federal Tax Payment System or with a debit or credit card. When paying one of these ways, taxpayers will select “extension” as the reason for the payment. Taxpayers should print out a confirmation as proof of payment and keep it with their records.
Here are a couple things for people filing an extension to remember:
- More time to file is not more time to pay. An extension to file gives taxpayers more time to file their return, but not more time to pay their taxes. Taxpayers should estimate and pay any owed taxes by the April deadline to help avoid possible penalties.
- The IRS can help. The IRS offers payment options for taxpayers who can’t pay all the tax they owe. In most cases, they can apply for an installment agreement with the Online Payment Agreement application on IRS.gov. They may also file Form 9465, Installment Agreement Request. The IRS will work with taxpayers who can’t make payments because of financial hardship.
- Contact us at CD Tax and Financial. Our tax professionals can handle tax return preparation and filing for individuals, businesses, partnerships, trusts, estates, ex-pats, S-Corps, C-Corps, LLCs and many others! Should you have any questions or concerns please feel free to call or email us today.
As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.
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If you fail to pay all your taxes by the April 15* deadline, you’ll have to pay the IRS interest and penalties on your underpayment. The IRS charges interest at its prevailing rate, which it publishes quarterly. The late payment penalty is generally .5% for each month there is an unpaid balance, up to a maximum 25% penalty.
When you file a late return with a balance due, another nasty penalty kicks in – the late filing penalty. This penalty amounts to 5% per month, for a maximum of five months. For example, if you owe $5,000 in taxes and failed to file a return or an extension by April 15, the failure-to-file penalty could build up to as much as 25% or $1,250.
*When April 15 falls on a Saturday, Sunday, or legal holiday, the deadline for filing is generally moved to the next business day.