Filing for a tax return extension is a great way to give yourself more time to file your taxes without incurring any penalty. However, it is important to understand the process of filing for an extension, as well as the benefits of filing for an extension.
The most common reason for filing a tax return extension is lack of time. If you find yourself in this situation, you can file Form 4868 with the IRS to get an automatic six-month extension of time to file your federal income tax return. This extension does not apply to state income taxes, however, so you will need to contact your state tax authority to inquire about an extension for those taxes.
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Steps to File for a Tax Return Extension
The first step in filing for a tax return extension is to gather the necessary information. This includes your Social Security Number (SSN) or Employer Identification Number (EIN), as well as your address and phone number. You will also need to enter the amount you owe in taxes.
Once you’ve gathered the necessary information, you can fill out Form 4868, which is available on the IRS’s website. This form will ask for your name, address, phone number, SSN or EIN, and the amount of taxes you owe. Once you’ve filled out the form, you can submit it electronically, which will save you time and money.
The next step is to pay any taxes that are due. The IRS allows taxpayers to pay their taxes online using a debit or credit card. You can also pay your taxes by check or money order, or you can use the IRS’s Electronic Federal Tax Payment System (EFTPS).
Benefits of Filing for a Tax Return Extension
The primary benefit of filing for a tax return extension is that it gives you more time to file your taxes without incurring any penalty. The extension grants an additional six months for taxpayers to file their taxes, bringing the new deadline to October 15th. This additional time can be used to gather all the information needed to accurately file your taxes.
Another benefit of filing for a tax return extension is that it can help you avoid the late filing penalty. If you are unable to meet the April 15th deadline for filing your taxes, you may be subject to late filing penalties. The penalty for late filing is 5% of your unpaid taxes for each month that your taxes are late. This penalty can be as high as 25% of your unpaid taxes.
Conclusion
Filing for a tax return extension is a great way to give yourself more time to file your taxes without incurring any penalty. It is important to understand the process of filing for an extension, as well as the benefits of filing for an extension. By filing for a tax return extension, you can avoid the late filing penalty and ensure that you have enough time to accurately file your taxes.