Have you requested a Tax Filing Extension?
Were you able to request a tax filing extension this year? The request for a tax filing extension must be submitted to the IRS on or before the April 18 deadline. If you were able to file before the deadline, you must remember that being granted an extension by the IRS doesn’t necessarily mean that you’ll have more time to actually pay your taxes!
Even though you can get an extension on your tax filing, you still have to pay your taxes when they’re due. This means that if you don’t know the exact amount of taxes you owe, you’ll need to make an estimate and pay that tax estimate by April 18th .
But if you weren’t able to request an extension this year, here are the things that you need to know about the tax filing extension for next year:
How is the tax filing extension requested?
Requesting a tax filing extension can be done either electronically or by mail by using IRS Form 4868, which you can download from the IRS website. You need to request an extension before April 18 in order to avoid a late-filing penalty from the IRS.
If you don’t know which tax software to use, the IRS offers a free online filing service, Free File, and also partners with a nonprofit organization called Free File Alliance, which provides people who make less than $73,000 of adjusted gross income access to free name-brand tax-prep software. Are you making more than the threshold specified? Don’t worry, everyone can use it, but it might not be free.
But if you are using a tax preparation software, you might be able to request an extension from there. Just make sure that your tax preparation software supports the submission of IRS Form 4868. If your tax preparation software does support it, all you have to do is follow the instructions provided and request a tax filing extension electronically. Make sure that you get an acknowledgment from the IRS after submitting the IRS Form 4868 from your tax preparation software.
Ain’t tech-savvy enough to file for an extension electronically? Don’t worry, you can also request a tax filing extension by manually filling out IRS Form 4868 on paper and having it mailed to the IRS. Just make sure that you get the proof that you did send the IRS Form 4868 to the IRS mailing address.
How long does a tax filing extension give me?
If you were able to request a tax filing extension this year, the IRS will give you until October 17, 2022, to prepare and file your tax documents.
By requesting an extension, the IRS will give you approximately six months to file your return. A tax filing extension doesn’t mean that you’ll be able to file your taxes 6 months from now. If you haven’t met the April 18 tax filing deadline, you’ll have to estimate your tax bill and pay that amount as soon as possible. What the tax filing extension does is give you more time to properly prepare and file your tax return – not an extension on tax due payment.
If the tax estimate you paid is lower than the actual taxes you have to pay after the extension, the remaining amount will be subjected to the applicable late payment penalties and interests deemed by the IRS – even with an extension.
However, there might be a possibility that you won’t incur any late payment penalty or interest if you settled at least 90% of your actual tax bill.
Tax Filing Extension for American expats and military personnel
Some taxpayers enjoy the benefit of not having to request a tax filing extension because it is given to them by the IRS.
- US citizens or Green card holders who lived and worked outside of the country are given a two-month extension by the IRS. This helps American citizens and Green card holders ample amount of time to prepare and file their taxes despite the geographical barrier.
- Americans who were directly affected by naturally occurring disasters may automatically get their tax filing deadline extended. However, if you were affected by a naturally occurring disaster, it’s best to check with the IRS first if you fall under this category.
- A number of military personnel are also qualified for an automatic tax filing extension. However, their qualification will depend on where they are stationed and what they are doing. As a rule of thumb, it’s best to check with the IRS first!
Things to remember about tax filing extensions!
When requesting for an extension before the April deadline, make sure that you include a check for your estimated tax due payment or indicate that you don’t owe any taxes that year. If you don’t make an estimated tax payment of at least 90 percent of the original liability on your return, interests and penalties could apply.
If you have requested for an extension, remember that your last chance to submit your tax documents to the IRS is in October, there are no more extensions after that. So don’t forget to submit your tax documents by October.
We understand that this might be too much to digest. But luckily, an experienced Enrolled Agent from our team is more than willing to help you out! If you feel like this is too much work for you, then fret not! Send us a message today and let our Enrolled Agent handle the grunt work for you!