When the time arrives to file your income tax returns, you start to collect all your finance related information for the year. However, while doing so you might realize that you do not have all the adequate information required to file the tax. You might need more time. The IRS allows you to file your taxes a little later. This is by submitting the form 4868 and this process is called as Tax extension.
What is tax extension?
When you need more time to file your taxes, the IRS grants the same automatically. This is called as tax extension. When you apply for a tax extension, you can take an additional six months to gather your finance related documents and then file the tax. This allows you to minimize errors while you are actually filing your taxes.
Tax extension means that you are granted an additional period to file your taxes. You can use this grace period to collect all the required information to file the taxes. Tax extension does not mean that you can delay paying your taxes to the government. Even if you have applied for a tax extension, you still need to pay your taxes on time.
What is form 4868?
The Form 4868 is an automatic tax extension form. The moment you submit this form with the IRS you will be granted a tax extension. You need to mention your name, employer, SSN (social security number) and address while applying for the same.
This form needs to be used only to file your personal taxes. All your finances related to your business and taxes corresponding to that cannot be filed using this form.
Reasons for filing an extension
One of the main reasons for filing a tax extension is the lack of information. However, there are other reasons like, if you are facing any medical emergencies or natural disasters during the tax season, you can file for a tax extension. You can pay more attention to the issues that are bothering you at the moment and then file your taxes. That way, you can gather tax information at your leisure and file your taxes without errors. Another common reason for applying a tax extension is, if you have lost your W2 and waiting for the same. So, instead of filing approximate tax amounts in your tax forms, you can fill form 4868 and get a tax extension. Once all your documents are in place you can file for your actual amount of taxes.
However, the IRS does not expect you to provide any reason to file your tax extension. It only expects that you file for your extension before the tax day.
Cases of rejection:
Any tax extension beyond the tax day is not accepted by the IRS. The IRS also holds the right to reject your tax extension plea. If you owe a very huge amount of taxes from your previous years or if the information you provide in the form 4868 is not correct, then the IRS rejects your plea of tax extension for the current fiscal year.
This Article was written by Marcus Cherep. Visit our site at ( survivingtaxes.com ) for more details.
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