Filing a tax extension is easier and simpler than most people believe. One can apply for tax extension anytime he needs, provided he is aware of how to file a tax extension and the steps involved. Although it is not recommended to rely on this option completely, it can prove very convenient in case someone needs extra time for filing his tax return which might have got delayed because of any personal or other reason.
Before delving the details any further, it must be remembered that getting a tax extension gives a person more time for filing his return and it will not give him more time for paying the taxes that he owes. It is important that the tax payment is made by the due date, which is April 15 to avoid penalties. Mentioned below are five easy steps that can be followed to file a tax extension.
• First step is to determine if a person owes the taxes. In case the person is eligible to get a refund, then the filing process becomes less troublesome as he does not need to request for extra time. However, in case he owes money, then he is required to file for a tax extension, along with making arrangements for the payment to be made.
• Next step is to get the Tax Form 4868, which is available on the official IRS website. This is a one page long form which can be downloaded or printed and can help a person get an additional time of six months for filing his taxes. Another option is to hire the services of a tax professional, who can provide the form and also assist in completing other details.
• The Form 4868 needs to be filled with required information, such as name, contact details, social security number, etc., and then submitted to the IRS before the deadline. Taxpayers have the option of either filing the form through paper mail or electronically. Both choices are equally convenient; however, people generally prefer the latter in order to save their time.
• Paying the income tax is the next step and ideally the entire amount should be paid. However, it might not be possible in many cases; thus people can also pay a part of the tax. As mentioned earlier, filing a tax extension does not give extra time for paying the taxes. Therefore, more will be the delay in paying the taxes; more will be the outstanding amount.
• After the tax extension has been filed, taxpayers get an additional time of six months. It means the due date for filing tax gets extended from April 15 to October 15. While it is surely a thing of relief, six months is not a very long time and thus one should not wait till the last day for filing his tax returns.
Following the above mentioned steps can make it very easy for people to get tax extension and complete the entire process in a stress free manner. Anyone can benefit from this option and get approval for extension. Moreover, people applying for tax extension are not required to mention a reason, which makes it even more convenient for them who find themselves unable to file their tax within the deadline.