We’re swiftly approaching the deadline. If you haven’t filed your income tax returns, you might want to file an extension. Are you looking for an update on filing an extension before the deadline? Here it is! If your still not ready to file and you’re looking to pause father time, consider filing an extension for your tax returns. Especially if you have more than a simple return. If you intend to file an extension, you need to file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return extension, before the deadline.
You know you need to wait to file your taxes and you know that you’ll likely owe taxes. What you probably don’t know is that the extension doesn’t provide more time for you to pay and file, only more time for you to file. Which also means you need to pay taxes you owe by the deadline! Shocked?!
What’s A Filing Extension?
According to the IRS, “an extension of time to file your return does not grant you any extension of time to pay your taxes”. Most people don’t know that even if you file an extension, you still have to pay liabilities due to the IRS by the deadline. An extension provides up to 6 months (in most cases) for you to gather your tax forms. Which, would allow you to have until September to file your taxes. What it doesn’t do, is extend the time of when your payment is due. There are also late payment fees associated with payments made after the deadline. These late fees vary for each taxpayer.
How Can You Prepare?
- You can make a prepayment with your extension. It will show, what can be referred to, as a good faith payment. This can help show that you intend to pay the taxes you owe. It could also help reduce the late fees or penalties that you’d pay on the total amount due.
- Consult with your tax adviser about a tax projection and making a prepayment with your extension. A tax projection can give you an estimate of what you’ll owe to the IRS when you do file your return.
If you have questions about filing an extension or you’d like to schedule a tax consultation to file your return after the tax deadline contact our office ASAP!