As difficult as many people find filing a tax return to be, filing for a federal tax extension is just simple and easy. If for any reason you find yourself to be unprepared for filing your taxes as the time draws near, you can ask the IRS for 6 months to get things in order by filing for a federal tax extension.
Don’t know how to do it? Well, this post will explain the whole process.
Understanding If You Actually Need It
In very specific scenarios, you are automatically given an extension for filing your taxes. These scenarios include:
You being a US citizen working and living in another country
You being in the military and serving across the border
Or you living in those parts of the US that are affected by natural disasters
Getting the Right Form from IRS
Depending on the nature and type of your business, you are eligible to file for a tax extension by filling out the relevant forms. There are two forms available for tax extension, form 4868 and form 7004. Form 4868 is to be used by sole proprietors while form 7004 is for partnerships and corporations. Remember that the form needs to be submitted by 15th of April, the usual IRS deadline.
You Need to Pay by the Deadline
Unfortunately, if you already owe IRS money, you will have to pay it by 15th of April as an extension does not buy you time to pay the money already owed. If you somehow manage to miss your the payment date, there is a likely chance that IRS will charge you a penalty as well as interest on the taxes owed. You might be alarmed about paying more than you would actually owe. Well, don’t be, because when you file your taxes, if the amount paid is more than the amount owed, the IRS will send you a refund check.
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