Tax time is one of the most dreaded times of the year for many taxpayers. Filing taxes can be a daunting task, and in some cases, taxpayers may need additional time in order to properly prepare and file their taxes. Fortunately, the IRS offers taxpayers the option to request an extension on filing their taxes. This article will explain the process of obtaining an IRS extension and the guidelines for filing an extension.
What is an IRS Extension?
An IRS extension is an additional filing period for taxpayers to submit their tax returns. An extension allows taxpayers more time to complete their return, and it does not extend the amount of time to pay taxes owed. An extension can be requested for both individual and business tax returns.
When Should I Request an IRS Extension?
Generally, the deadline to request an extension is April 15th. However, if April 15th falls on a weekend or holiday, the deadline is moved to the next business day. The extension granted by the IRS is typically six months.
How Do I Request an IRS Extension?
The process for requesting an IRS extension is fairly straightforward. Taxpayers can request an extension by submitting Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form can be found on the IRS website, and it should be filed by the April 15th deadline.
What Information is Required to File an Extension?
When submitting Form 4868, taxpayers should provide their name, address, Social Security number, estimated tax liability, and any tax payments that have been made. Taxpayers should also include an estimate of their total tax liability for the year, as well as any payments that have already been made.
Are There Any Risks to Filing an Extension?
The main risk of filing an extension is that taxpayers may still be subject to late filing penalties if they do not file their taxes within the six-month period. Additionally, if taxpayers owe taxes, they may be subject to interest charges.
Conclusion
Filing an extension can be a useful tool for taxpayers who need more time to complete their taxes. However, it is important to note that taxpayers may still be subject to penalties and interest if they do not file their taxes within the six-month period. By understanding the process of requesting an extension and being aware of the risks, taxpayers can make an informed decision about whether an extension is right for them.
