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Filing an IRS Tax Extension

23rd November 2009
By Robert Bell in Taxes
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Each year approximately 140 million Americans undertake the annual ritual of filing their tax returns. According to Bank Rate Monitor, nearly 10 million people request an extension from the IRS each year. Individuals can request up to and additional six months to file their returns. However, if you are one of the millions citizens who plan on filing an extension there are some things you need to know. It's important that you sure that it's done right and you don't end of paying the IRS even more of your hard-earn cash.

CCH, an Illinois company specializing in tax publishing, estimates that as many as 66 percent of the people who file individual tax returns make mistakes or miss out on tax deductions because they are extra cautious not to make errors on their returns that may cause the force of the IRS to come down on them.

the fact is that even with the April 15th deadline looming in the background, you don't have to feel pressured to get it done, especially if you believe there are deductions that you are entitled to and need more time to figure out or have a tax professional determine. Just request an extension for filing your return instead of stressing over the situation. It's easy to do. the traditional way of sending in the necessary form, this is short IRS Form 4868.

the instructions for Form 4868 list the mailing address where you should send the request. It also has the addresses you'll need in case you want to deliver the extension request by DHL, UPS, or FedEx. Your request for an extension can also be filed electronically. Most requests for extensions are approved. the extension is only granted for filing your return. You must estimate any taxes that are due and send a check along with the extension request for least 90 percent of total amount due.

Most requests for filing extensions are approved. However, the IRS may refuse your extension request for reasons, such the name doesn't match a Social Security number, a wrong social security number or a name change due to marriage or other grounds. the IRS will also refuse your request if you send in an estimated tax payment that seems grossly out-of-line with your situation.

You have several options when it comes to paying your taxes. If you are filing the paper Form 4868, you can send a check, money order or cashiers' check in the mail. You may also pay by credit card through a payment provider that has been approved by the IRS. You will not need to file a paper Form 4868. You should get a confirmation number and put it with your records after the transaction has been approved. there are also electronic services that will file an extension for you; however, you are responsible for sending in any payment that is due or make a credit card by some other method.

If you miss the April 15th filing deadline, the money owed to the Internal Revenue Service is subjected to late fees and penalties of five percent a month on the unpaid balance, up to a maximum of 25 percent. Although you should always try to pay any taxes due by the deadline, if you cannot pay the entire amount that is due, pay what you can. In this case, as long as you pay by the deadline, the penalty is only 0.5 percent on the unpaid balance.

there is also a three percent annual interest rate that is compounded on a daily basis. If you have a small outstanding tax bill there is a minimum penalty amount of $135, or 100 percent of the taxes due, whichever amount is smaller. For example, if you owe $300 and fail to file your return in time, the penalty is $135 plus the $300 in taxes that are due.

If you live in a foreign country, and you need to file an extension, the correct form to use is Form 2350. Also, you should be aware of the fact that the procedures and guidelines for filing state tax extensions vary depending on the state where you will file. the information you need to know is similar to federal tax extensions. You'`ll need to know the filing deadlines, where you should mail your request and any interest or penalties that may apply. You should contact the state revenue department for more information. Since taxes are a vital source of revenue for the states as well as the federal government. You can count on the government making sure that everyone knows what is required to pay their fair share.1040-Tax Extension will file your online tax extension with the IRS and guarantee that the IRS will accept your application. Visit online for automatic extension on your individual tax return.
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