15th April is the due date for filing tax returns but many individuals are not ready or prepared to file their tax returns on this date due to some reasons. Fortunately, the Internal Revenue Service allows the taxpayers to place a request for time extension for filing their tax returns. However, it is to be noted that taxpayers need to place this request prior to the original due date of filing the tax returns i.e. 15th April. There are a number of important things that taxpayers need to know in regards to tax extensions prior to relying on this procedure for postponing their filing obligations.
Is There Any Penalty for Filing Tax Extension?
Almost any individual can receive tax extension which gives an individual the flexibility of using another six months to file his or her federal income tax return. Tax experts, however, would like to caution taxpayers regarding the fact that form 4868 only provides an extension for filing tax returns and not for paying the taxes which are due. Individuals who submit form 4868 extension must keep in mind to make the payments for taxes which are due. This helps in avoiding late fees, penalties or interest which keep on accumulating until the tax return is properly filed. The form actually says “automatic extension” meaning that you will have to submit the form within 15th April and the IRS will grant you the time extension for filing your tax return automatically. There is nothing else that you need to do for getting tax extension. Remember that the tax extension is good for only six months.
How to Get a Tax Extension?
It is always important to keep in mind that tax issues need to be dealt with immediately. Taking action before hand is always necessary especially in regards to taxes. Failing to do so might have an individual falling into great trouble. You must always have this in mind that there is a specific time limit within which a tax extension can be requested. Therefore, it is necessary for you to remain aware of the personal situation you are in. this will help you in determining whether you actually require the time extension for filing your tax return or not. If you are of the feeling that you will be needing the extension or you might face problems in paying the owed tax amount within April, it is always the best thing to tale action at the earliest. You must mentally prepare yourself and take some time in understanding the situation.
It is also important for you to take the advice of a professional in this respect. You also have the option of contacting the Internal Revenue Service for getting the required information. Once you are done with the decision-making procedure and the fact that you need the extension, choose the right method of requesting the extension. The three methods that you can choose from include filing paper form through mail, IRS e-file form 4868 and paying part or all of the due income tax using a debit or a credit card.