Comprehensive Tax Filing Guides & Checklists Archives

Tax Extension Guidelines

Federal Personal Tax Extension

If you don’t think you can file your taxes on time and you need some extra time to prepare, you can easily get an additional 6 months to file your return without facing any penalties. For this you will need to submit a tax extension application (Form 4868) to the IRS. Once your request is approved, your tax filing deadline will move forward to October 15, giving you ample time to get your tax paperwork in order.

Before you file for a tax extension, there are certain things you should remember. First, the tax extension application must be submitted by the original filing deadline (April 15) in order to be accepted by the IRS. If you file your extension request after this deadline, you will not be eligible for one. Once you obtain an extension, make sure to file your tax return by the extended due date if you want to avoid penalties.

Another important factor to remember is that getting a tax extension does not change the due date for paying your taxes. So if you owe income tax to the IRS that year, you will have to pay your total tax liability (or at least 90%, to avoid the late payment penalty) along with your extension application. You are required to provide an estimate of your income tax liability when you apply for an extension. Failing to pay your taxes by the original due date (April 15) will result in late fees and interest charged by the IRS.

For a Federal individual tax extension, you must complete Tax Form 4868, officially known as the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form must be properly filled out and submitted to the IRS by your original filing deadline (April 15) to avoid a late filing fee. Note that you can submit Form 4868 online or by paper mail.

E-file your personal tax extension today!

Federal Businesses Tax Extension

If a corporation, partnership, REMIC, multi-member LLC, trust, or estate requires additional time to file their taxes, they can request a tax extension from the IRS using Form 7004. Known as the “Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns,” this form will give you 5 or 6 extra months to file (depending on the type of business entity).

Form 7004 is divided into 3 main parts, of which Part III is mandatory for all filers. The other 2 parts should be filled out based on the type of extension you’re applying for. Always remember that getting a tax extension means you will only have extra time to file your taxes, not to pay them. If you owe a tax balance to the IRS, it must be paid by your original filing deadline to avoid any penalties.

Corporations that operate based on the calendar year are required file their annual return by the 15th day of the 3rd month following the end of the tax year. To get a business tax extension, the application form must be submitted to the IRS by that same date (typically March 15). Most corporations are allowed a 6-month extension, moving their filing deadline to September 15.

Other types of businesses (including partnerships, trusts, certain estates, and some multi-member LLCs) are required to submit their extension application by the due date of their personal income tax return (April 15). If approved by the IRS, these business entities will get a 5-month tax extension, moving their filing deadline to September 15.

For a single-member LLCs, which are not treated as separate entities for Federal income tax purposes, Form 4868 should be used to apply for a tax extension. In this case, submitting Form 4868 will extend the filing deadline for both personal and business taxes. This is because an LLC (limited liability company) is regarded as a “pass-through entity” and is reported as part of your personal tax return. The same procedure applies to sole proprietors, who can use Form 4868 to request both a personal and business tax extension.

If you are requesting a business tax extension, you will have to provide your Employer Identification Number (EIN) on Form 7004. However, if you are using Tax Form 4868 to get an extension, you should provide your Social Security Number (SSN) instead. Note that Form 7004 can also be submitted online or by paper mail.

E-file your business tax extension today!

State Tax Extensions

Now that you understand how to obtain an extension for your Federal tax return, the next step is to determine whether you can get an extension for your State tax return. Requesting a state tax extension can be as easy as your Federal extension, but it depends heavily on which state you live and/or earn income from.

Tax extension regulations are different in each state, just as the rules for filing taxes vary from state-to-state. Certain states (such as California and New York) impose high tax rates on personal and business income, making the benefits of a tax extension even more obvious. While other states (including Nevada and Texas) have no personal income tax, thus eliminating the need for a state tax extension.

Some states will automatically accept a valid Federal tax extension and do not require a separate state application. However, in other states, you will need to complete a state-specific form to apply for a tax extension. For more information, please visit the State Tax Extensions center.

Contact the TaxExtension.com Support Team if you have any questions about your tax extension.

Online Tax Extensions: Quick and Easy!

Getting a tax extension is easy and it takes only minutes when you use a secure online service like TaxExtension.com. More than 10 million taxpayers get extensions every year, giving them more time to prepare and file their returns. You can too!

TaxExtension.com is an Authorized IRS e-file Provider, which means that you can feel confident knowing your information is in good hands. Our dedicated team of product experts and tax professionals has created a user-friendly online application that guides you through the process of submitting Form 4868 (or Form 7004) to the IRS. In just 3 simple steps, you can get a tax extension online and say “goodbye” to the April 15 (or March 15) Tax Day!

First Step

To apply for a tax extension, you must provide some personal information. For individual taxpayers, this includes your name, address, and Social Security Number (SSN). For businesses, this includes your name, address, and Federal Taxpayer Identification Number (TIN).

Second Step

You must calculate the amount of your estimated tax liability for the year, and report any payments that were made during the year. TaxExtension.com offers an online tax calculator to help with this step. If this year’s tax situation is similar to the previous year, you may want to just use those same numbers (as many customers do). To avoid interest and penalties, you can make an IRS tax payment along with your extension application via Electronic Funds Withdrawal (EFW).

Third (and Final) Step

When you click “Submit,” your tax extension form (and payment, if applicable) is sent directly to the IRS. Once your extension is approved by the IRS, you will receive a confirmation email. TaxExtension.com customers may also login to check the status of their extension any time.

If your extension application is rejected for any reason, the TaxExtension.com Support Team will help you figure out what went wrong. Then you can fix any mistakes and re-submit your application at no extra charge. Keep in mind, the majority of rejections are caused by mismatching names and Social Security Numbers that conflict with IRS records.

Feel free to contact us if you have any questions about the tax extension process.

E-file your personal tax extension or business tax extension online today!

Income Tax Extensions Q & A

Do you have a question about tax extensions that you want to ask? At TaxExtension.com, we are frequently asked a lot of questions regarding income taxes, filing taxes, paying taxes, and tax extensions. It’s not uncommon to be confused by the government’s jargon — but luckily, our team has assembled a list of commonly asked questions to help you understand the rules for getting an IRS-approved tax extension.

QUESTION: What Is Income Tax Liability?

ANSWER: The term ‘tax liability’ refers to the amount of tax that you owe to the Federal government. In other words, it is your annual bill from the IRS. Your tax bill is the result of taxation on your personal income (if you’re an individual taxpayer) or your business income (if you have a company). Your tax liability is essentially what you owe the IRS for the year, whether or not you had money withheld from your paychecks during that year. For instance, let’s say that your annual salary is $50,000 and you owe $8,000 in taxes to the IRS. Let us also assume that you have already paid $6,000 in taxes so far via withholding from your paychecks. Therefore, your total tax liability for the year is $8,000. But your current balance due is $2,000 (because $8,000 – $6,000 = $2,000).

QUESTION: Do I Also Need to File a State Income Tax Extension?

ANSWER: Different states have different regulations and laws regarding income tax and tax extensions. Some states (like Nevada and Florida) do not have a personal income tax, while other states (like Virginia and Pennsylvania) do impose a personal income tax. Certain states require you to submit a separate state extension application, while others will automatically accept a valid Federal tax extension. Visit the State Tax Extensions center for more information.

QUESTION: Do I Need a Legitimate Reason in Order to Obtain a Tax Extension?

ANSWER: No, the IRS does not require you to provide a specific reason for why you want a tax extension. As long as you fill-out and submit the proper application (Form 4868 for individuals and Form 7004 for businesses) on time, you will be automatically approved for a tax extension.

QUESTION: How Long Will It Take Me to File a Tax Extension?

ANSWER: At TaxExtension.com, getting an extension online is easy and takes only a few minutes. We are an Authorized IRS e-file Provider, which means you can trust that your information is secure and shared only with the IRS. Our tax extension service allows you to conveniently fill-out an online form and have it sent directly to the IRS. You can use TaxExtension.com to file your personal extension (Form 4868) and/or your business extension (Form 7004) all from the comfort of your personal computer. And although it rarely happens, you can even re-submit your application for free if the IRS rejects it for any reason.

QUESTION: What Is an Authorized IRS e-file Provider?

ANSWER: It basically means that TaxExtension.com has been authorized by the IRS to electronically file tax forms on the behalf of taxpayers. In order to become an Authorized IRS e-file Provider, a company must meet eligibility criteria and pass suitability tests with the IRS. Our system undergoes routine security scans every day to make sure your personal information is kept safe.

QUESTION: What If the IRS Denies My Extension Request?

ANSWER: This does not happen very often, but if it does, TaxExtension.com will notify you at once and provide the reason(s) why your application was rejected. We will also help you fix any mistakes and then you can re-submit your application at no additional cost. Note that most rejections are caused by names and Social Security Numbers that don’t match IRS records. But don’t worry, TaxExtension.com does not charge you anything for a re-file! The IRS gives you a few extra days (usually until April 20th at the latest) to fix errors and re-submit your extension. If you have any questions, feel free to contact our helpful Support Team.

Tax Extensions for Individuals

If you are filing your taxes in the U.S., one of the most important items you should be aware of is the Tax Extension. Understanding what tax extensions are and who can obtain them will make the tax filing process easier for you, while also helping to protect you from being charged unnecessary penalties by the IRS. To help you learn about personal tax extensions, here are some basics that you should be aware of.

What Is a Personal Tax Extension?

A tax extension gives you additional time to file your annual income tax return with the IRS. If you are somehow unable to file your taxes by the given deadline (typically April 15), you can apply for a Federal tax extension using IRS Form 4868. An extension will allow you 6 extra months to file your personal tax return, which moves your filing deadline to October 15. Getting an extension can also help you avoid late filing fees charged by the IRS.

A tax extension is easy to request, and almost anyone can be approved for one. However, you must remember that getting an extension doesn’t mean you can totally slack off. When you file for a tax extension, you are basically making an agreement (with the IRS) to file your taxes within the extra time provided.

Another thing to keep in mind is that filing a tax extension doesn’t mean that you can get an extension for paying your taxes. You are still expected to pay that year’s taxes by the original filing due date (April 15), no matter what! The IRS charges interest and penalties on overdue tax, so it is better that you pay any outstanding amount. You will have to calculate an estimate of how much your tax will be for the year. As long as you pay at least 90% of your tax liability by April 15, you will not be subject to late payment penalties.

You will need to submit your tax extension request by the original filing due date (April 15) in order to get the additional time to file. You can do this by mailing the IRS a paper version of Form 4868, or take the easier route and e-file Form 4868 online. If you use an online service like TaxExtension.com, you can also pay your taxes online when you file your extension. TaxExtension.com is an authorized IRS e-file provider, so you can trust that you personal information is secure.

Who Can Get a Personal Tax Extension?

In general, every individual who’s required to file an annual tax return is also eligible for a Federal tax extension. When you apply for an extension, you won’t be asked to provide a reason for why you need more time. Just make sure your application (Form 4868) is filled out correctly and submitted on time, and you should be approved. If a tax extension is denied by the IRS, it’s almost always because incorrect information was provided on the application (e.g., address or Social Security Number) that doesn’t match IRS records.

When filing for a tax extension, make sure that the information you’ve provided is completely accurate and up-to-date. If there have been any changes in your situation (such as a name change or new address) you will need to notify the government about the change BEFORE you apply for a tax extension. See the Instructions for IRS Form 4868 for more information.

How to Get a Personal Tax Extension

Did you know that some people file for a tax extension every year? It is completely legal and the IRS doesn’t even care — as long as you file it on time.(by April 15). Here are the steps you need to take in order to request and obtain a Federal tax extension:

1. Determine If You Owe Federal Income Tax

If you expect to get a Federal tax refund this year, you are automatically given a 6-month extension of time to file your return, without even needing to formally request one. However, if you owe income tax to the IRS, you will have to apply for an extension AND pay your tax due by the original due date (April 15) to avoid penalties.

2. Complete the Tax Extension Application (Form 4868)

Tax Form 4868 is the “Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.” To request a Federal tax extension, you need to fill out this small form and submit it to the IRS. You can fill out Form 4868 online, or print it on paper and complete it by hand.

3. Submit Your Tax Extension Application

You may submit Form 4868 electronically or via paper mail. Remember to do this by the original filing deadline (April 15) to avoid a late filing penalty. Consider using an IRS-authorized provider like TaxExtension.com to handle your online tax extension. We send your application directly to the IRS and notify you once your request has been approved.

4. Make Your Payment for Federal Income Tax

Remember that you won’t be getting any extra time to pay the taxes you owe to the IRS. You can remit a tax payment with your extension application since both are due by April 15. While it is better to pay the complete amount of tax owed, you are not required to make a payment in order to get a tax extension. You can choose to pay part (or even none) of the tax due when you file for an extension. But the longer you wait to pay the IRS, the greater the late fees will be.

5. File Your Income Tax Return Within the Next 6 Months

Congratulations! Once your tax extension is approved, you will have 6 extra months to file your return — moving your deadline to October 15. Make sure you remember to file by the extended deadline to avoid IRS penalties.

All this information should help you understand how to get a personal tax extension with the IRS. It’s so easy — you don’t even need a reason! Let the experts at TaxExtension.com help you e-file your personal tax extension today!

If you want to request a tax extension for your business, please visit our Business Tax Extension Center.

Any questions? Contact our Support Team.

Tax Extensions for State Returns

In most cases, yes, you can get a state tax extension in addition to your Federal extension. However, the procedure for requesting a state extension will depend heavily on the state where you live and/or earn income. Every state has its own tax collection agency (usually a Department of Revenue) that is in charge of setting the rules for tax extensions. Therefore, you want to make sure you check the guidelines for your specific state — don’t just assume that their rules are the same as the Federal government’s.

Understanding State Tax Extensions

Residents of some states don’t have to worry about getting a personal state extension because their state government does not impose an individual income tax. These include: Alaska, Florida, Nevada, South Dakota, Texas, Washington (state), and Wyoming. Other states — like California, Iowa, New York, Oregon, and Vermont — impose high personal income taxes on their residents. In states such as these, getting a tax extension can be especially useful.

Certain states, such as Arizona and Pennsylvania, will automatically grant you a tax extension if you have a valid Federal extension (IRS Form 4868 for individuals, or IRS Form 7004 for businesses). Conversely, there are some states that require taxpayers to submit a separate state extension application, whether or not a Federal extension has been approved. Keep in mind that if you owe state income tax, you are most likely still expected to pay that by the original deadline of your state return.

For even more variety, some states permit both electronic filing (e-filing) and paper filing methods, while others will accept only one or the other. And finally, it is important to note that not all states have the same filing/payment deadlines as the Federal government (IRS). Make sure you know if your state’s due dates coincide with the Federal due dates, as that can affect your tax extension.

For more information about your specific state’s tax extension rules, please visit our State Tax Extensions center.

Top 5 Reasons to File Your Tax Extension Online

The U.S. tax system gets more complex every year, with new regulations and guidelines being piled on by lawmakers and the IRS. If you’re feeling overwhelmed and you’re tired of the a hectic tax season, consider getting a tax extension online.

Electronic filing (e-filing) is quickly becoming the preferred method of taxpayers, due to its convenience and fast results. In fact, you can e-file your tax extension application (Form 4868 for individuals, or Form 7004 for businesses) in just a few minutes, and receive IRS approval within 24 hours!

Here are the top 5 reasons to e-file your tax extension online:

1. There’s no paperwork involved when you e-file your tax extension

Maybe you’ve gone paperless like many other people, and you view statements and pay bills online. Go paperless when you file a tax extension too! You can get an extension of time to file your return AND help save trees at the same time. At TaxExtension.com, you can avoid the mess of paper documents and e-file Form 4868 or Form 7004 using a simple online form. Everything is done electronically — you can even pay your taxes online with your extension.

2. You must e-file your tax extension to get IRS email confirmation

If you e-file with TaxExtension.com, you will get a confirmation email as soon as your request is approved by the IRS. This can provide valuable peace of mind. TaxExtension.com customers may also check the status of their extension by logging into their account any time. Those who file a tax extension via paper mail get no IRS confirmation if they’re approved — only if their request is rejected.

3. E-filing is simple, convenient, and secure

Filing online can be a lot less complicated than filing a paper tax form. If you e-file, make sure to use an Authorized IRS e-file Provider like TaxExtension.com so you know that your information is kept safe. TaxExtension.com has an easy-to-use online form that brings you through the steps of applying for a tax extension, and even does the math calculations for you.

4. The IRS encourages taxpayers to e-file

Because e-filing helps to streamline tax procedures, the IRS actually prefers it when taxpayers electronically submit tax forms and payments online. According to the IRS, over 120 million people e-filed last year. The IRS provides a list of its Authorized e-file Providers, which includes TaxExtension.com. E-filing will help you get a faster response from the IRS, whether you’re looking for tax extension approval or you want to get your tax refund.

5. E-filing saves you time and headaches

You no longer have to wade through stacks of tax documents or wait in line at the Post Office during tax season. When you file online, everything is processed faster — whether it’s your tax extension application, annual income tax return, or tax refund. E-filing your tax extension can also help you avoid the IRS late filing penalty. Most of our customers get their IRS approval within 24 hours of e-filing — and it can all be done from your home or office computer!

If you have any questions, feel free to contact our friendly Support Team.

Category: Comprehensive Tax Filing Guides & Checklists