A lot of people fail to file their tax returns by April 15 and every one of them has their reasons. If one was busy with his/her business and didn’t find time to look after the taxes, another needs more time to gather all the relevant documents. Some get perplexed by the complexity of the tax returns form 1040, hence postponing the filing and some are just plain lazy. The IRS is considerate about this and provides the tax payers of the US with a choice to extend their tax return due date to October 15 i.e. a six month extension on submitting their filed tax return form, no matter what the reason for not filing.
The tax extension form 4868 is easy to file and doesn’t need anything more than your basic personal information and Social Security Number (SSN). Tax extensions have proved to be a boon to a lot of people who have genuine reasons for not to file within April 15 and need a little more time to gather and evaluate all their documents, come up with an approximate amount to pay and finally file the tax return. It should be noted that a tax extension permits a taxpayer to only postpone the filing of tax returns by six months and not the payment itself. The tax amount you owe must be made before April 15. Failing to file your tax return and also failing to file an extension before this date will make you liable for penalties and also leave a major dent in your tax history, which might further affect you in many ways, be it while applying for a loan or getting good premium rates on insurance. So read the below mentioned, easy to follow five steps to know how to apply for a tax extension.
• Since a tax extension doesn’t let you postpone the payment of taxes too, before filing the extension form, have an estimate of how much you are going to pay and arrange for the same.
• You can get your hands on the tax extension form 4868 either by paper mail or online. For the earlier method, call or the mail the IRS requesting a form; and for the latter, just sit in front your computer and click on the button ‘print’! You decide for yourself which method is easy and convenient.
• Filing a tax extension form is not a tedious and complicated thing to know while you figure out how to apply for a tax extension. If you choose to e-file, the form 4868 is much simpler and can be filled within five minutes. Moreover, apart from your basic personal information and social security number (SSN) you wouldn’t need anything else.
• Paying all the taxes you owe before April 15 is a good choice to make since the penalties and interests only keep accumulating every month and it doesn’t look good on your tax history either. Since refunds are available, it is even okay to pay a little extra and stay on the safe side to avoid any penalties.
• And lastly, don’t forget to file the tax extension form before April 15 and your tax returns before the extended period i.e. October 15.
Provided you follow all the above 5 steps on how to apply for a tax extension properly and provide all the correct information, there is no way anything can go wrong or come in the way of getting an approval.
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