Tuesday, 9 April 2019

Reclaim Your Time And Avoid Filing For Six Months

Form 4868Time is slowly ticking to get your income tax return in. Don’t feel like you can meet the deadline in time for Tax Day? Don’t worry the IRS has you covered. File an Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, also known as a Form 4868. The Form 4868 gives you up to six-months to get yourself together. Missing important documents? No problem you can now file for an extension. The IRS won’t even hassle you as to why the extension is needed, so you can give your grade school excuses a rest this time. The deadline to file a Form 4868 is Monday, April 15th.

Costly Penalties

Did you know that by failing to file your tax return or tax extension on time you will be charged 5% of your tax amount per month or partial month, that you are late. The cap is 25% after five months of noncompliance.

The minimum penalty is $135 or 100% of your owed tax amount, whichever is the smallest value of the two.

How To Apply

There are 3 various methods to apply. You can pay electronically, E-file, or Send in a paper Form 4868. It is important to note that with each method that the Form 4868 only pushes back the filing of your tax documents. It doesn’t give you extra time to pay any taxes that you might owe. If you think you may owe money this year you’ll need to estimate the amount after filing for your extension.

Pay electronically: When you choose this method you don’t need to file Form 4868. By making a payment the IRS will automatically process an extension of time to file when you pay part or all of your estimated income tax electronically. This can be done online or over the phone.

E-File: When you e-file you can do it on your personal computer or through a tax professional. Be sure to have a copy of your previous tax return. This information will be needed for verification. At this time you can choose whether or not to make a payment online, or send it in via postal mail.

Paper filing: With paper filing all you will need to do is fill out a paper Form 4868. You can choose to send it in to the IRS in two ways. The first way is through mail and the other would be through a private delivery service. 

*Be mindful that if you are a fiscal year taxpayer, you must file a paper Form 4868.

Tips To Consider

    Tax Day Calendar
  • Have necessary information on hand prior to beginning to file. (SSN, EIN, tax withholdings, tax liability, and estimated tax payment)
  • If you E-file Form 4868 and mail in a check or money order, use a completed paper Form 4868 as a voucher and note with your payment that your extension was electronic.
  • Review page 4 of the Form 4868 to insure you are sending your form and payment to the correct address. Just because you live in a certain state doesn’t mean your payment is sent to that IRS mailing address. 
  • If filing over the phone or online, you’ll receive a confirmation number. It is important that you write the number down and keep it for your records.

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