Much like some family members, everyone wishes tax season had stayed home as well. Tax season is dependable, makes some people feel awkward, and usually surprises you each year. Even if the deadline for filing your taxes has you worried and April 15th has passed, stay calm. You don’t need to worry, applying for a tax extension can help you .The tax submission date often seems difficult, but there’s a simple way past the tax extension.
Getting an extension for taxes is much like postponing your obligations. Unfortunately, it doesn’t take care of all your taxes, but it does give you added time to prepare those documents. We’ll explain all you need to know about this fin specialist, so your starving brain will follow along!
Didn’t Submit Your Taxes? Is the Deadline Already Past?
The good news is that the tax deadline is not the same as getting caught in prison. The IRS understands that not everyone is on time with their taxes and provides a few opportunities to those who are late.
The most important thing to do is submit an extension immediately if you have missed the deadline. If you file a tax extension request now, you may avoid incurring as many penalties as you would have if you did nothing. This is damage reduction, like applying toothpaste to a burn. It’s ultimately better to do something now than to let the burn go unattended!
What does a Tax Extension mean, and what purpose does it serve?
It means that you have more time to submit your taxes than the regular deadline. It provides you with an extra six months to send your paperwork to the IRS. Rather than rushing to finish by April 15th, you can now apply for an extension to make it happen.
Something trips many up: a tax extension allows you to postpone your filing, but not your payment. It’s crazy, and I had no idea that it would happen. Just because you have not found out exactly how much tax you owe yet does not change the original due date.
Who Can File a Tax Extension?
Perhaps you are considering whether a tax extension would work for you. These individuals usually find it helpful to apply for an extension:
- If your papers look like they have survived being attacked by a shredder, you are considered The Overwhelmed.
- The Waiting Game Players: So far, not all tax forms have been received. Extension time!
- When living abroad, individuals face extra tax challenges and can use automatic tax extensions.
- The Small Business Owners/Self-Employed: If you need to prepare taxes for more than just a W-2
- Handling Life’s Surprises: Responding to big life changes, illness or something unexpected in the family
Just remember, making an extension is not the same as admitting a tax error, even experienced professionals and accountants may do the same for themselves and their clients.
How Can I File For A Tax Extension Myself?
Glad you’ve decided to join the extension club; we are thrilled to have you. Below is a list of steps to finally escape the stress of tax deadlines:
- Get the proper form: You are looking for Form 4868, which is the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
- Make sure to add your name, the address you use and your Social Security number.
- Estimate the taxes you will have to pay and consider your previous return to help with the estimation.
- If your estimate results in a balance you must pay, then pay off as much now as you can to save on extra fees
- File for an extension as close as possible to the original date it was due
The process is very easy since most people can finish it in fewer than 15 minutes. However, if you find the tax season and extension process hectic, you can also outsource professional income tax services like H&M Tax Group. Where professionals handle your taxes for you with accuracy and without giving you any stress.
Can I get a Tax extension online, and is that service free?
Yes! People often ask if they can submit a tax extension on their own, and the answer is not only yes, but also very positive.
It is possible to request a tax extension for free online in several ways.
- Currently, the IRS has a free IRS Free File that assists with filing for extensions online.
- Tax preparation software: A lot of tax software allows you to file extensions online
- By using IRS Direct Pay, you can choose to make an extension payment.
- You can also use the Electronic Federal Tax Payment System (EFTPS) to extend your tax payment.
Making your extension request electronically means you’ll receive immediate verification that the government has received it, unlike the old way, where your neighbour’s dog could easily eat your form.
What Will Happen If I Do Not Pay My Taxes By the Set Deadline?
This part of the story gets a bit less exciting. Extensions do not change the fact that the IRS wants you to settle your tax debt by the original deadline. Should you find yourself unable to pay the full amount, paying as much as possible will help you avoid further damage.
The punishments are organised as follows:
- Late payment fee: Generally, you will face a 0.5% penalty for each month your taxes are unpaid.
- Interest: 3% extra is added to the federal short-term rate, and this interest is compounded daily by IRS standards.
Fortunately, the failure-to-pay penalty is not as harsh as the failure-to-file penalty (which costs 5% per month). Even if you’re unable to cover all your debts, getting an extension is beneficial.
How Do I Check If I Have Been Approved for an Extension?
College acceptance letters differ from extension requests, as the IRS doesn’t send them for the latter. If all the needed steps are taken, you will automatically be granted a tax extension. When it comes to this, no news at all is a sign of progress.
When you file electronically, you should expect to get a confirmation number letting you know your extension was accepted. This is my way of saying good job.
If you want to use paper filing, certified mail with a return receipt will verify the letter was sent, but you won’t get a particular response from the IRS.
H&M Tax Group is Your Comprehensive Tax Solution for All Your Tax Needs
- Expert Tax Professionals
- Certified CPAs
- Quality Of Service
- Affordable Rates
Conclusion
Getting an extension is not difficult if you have lost tax documents, are involved in a complicated tax topic, or are not ready to file. For an easier and more efficient tax season, seeking advice from the experts at H&M Tax Group can help. Extending your debt can be stressful; however, their experienced team will help you go through the process, pay less in penalties, and help you make the right decision.
