The
April 15 tax deadline is approaching. What happens if you can’t get your taxes
done by the due date? If you need more time, you can get an automatic six-month
extension from the IRS. You don’t have to explain why you’re asking for more
time. Here are five important things to know about filing an extension:
1.
File
on time even if you can’t pay. If
you complete your tax return but can’t pay the taxes you owe, do not request an
extension. Instead, file your return on time and pay as much as you can. That
way you will avoid the late filing penalty, which is higher than the penalty
for not paying all of the taxes you owe on time. Plus, you do have payment options. Apply for a payment plan using the Online Payment Agreement tool on IRS.gov. You can also
file Form 9465, Installment Agreement Request, with your tax
return. If you are unable to make payments because of a financial
hardship, the IRS will work with you.
2.
Extra
time to file is not extra time to pay. An extension to file will
give you six more months to file your taxes, until Oct. 15. It does not give
you extra time to pay your taxes. You still must estimate and pay what you owe
by April 15. You will be charged interest on any amount not paid by the
deadline. You may also owe a penalty for not paying on time.
3.
Use
IRS Free File to request an extension. You can use IRS Free File to
e-file your extension request. Free File is only available through the IRS.gov
website. You must e-file the request by midnight on April 15. If you e-file
your extension request, the IRS will acknowledge receipt. You also can return
to Free File any time by Oct. 15 to prepare and e-file your tax return for
free.
4.
Use
Form 4868. You can also
request an extension by mailing a Form 4868, Application
for Automatic Extension of Time to File U.S. Individual Income Tax Return. You
must submit this form to the IRS by April 15. Form 4868 is available on
IRS.gov.
You don’t need to submit a paper Form 4868 if you make a payment using an IRS electronic payment option. The IRS will automatically process your extension when you pay electronically. You can pay online or by phone.
You don’t need to submit a paper Form 4868 if you make a payment using an IRS electronic payment option. The IRS will automatically process your extension when you pay electronically. You can pay online or by phone.
5. Electronic funds withdrawal. If you e-file an extension
request, you can also pay any balance due by authorizing an electronic funds withdrawal from your checking or
savings account. To do this you will need your bank routing and account
numbers.
Visit
IRS.gov for more information about filing an extension and the many options you
have to pay your taxes.
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