Category: General

 

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!

 

 

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.

 

 

As you are preparing to apply for a Federal tax extension, you should keep in mind that an extension does NOT give you more time to pay your income tax liability. A tax extension only gives you more time to file your income tax return — 6 months for your personal return (to October 15), and 5 or 6 months for your business return (to September 15). This means that you must be ready to pay any taxes due by the original filing deadline of your return (April 15 for most individuals, and March 15 for most businesses). TaxExtension.com makes it easy for both individual filers and business filers by providing you with the option to pay your taxes online with your extension application. You can choose to pay all, some, or none of the taxes owed with your Form 4868 or Form 7004.

If you do not pay your income tax liability by the original due date (April 15 for individuals, and March 15 for businesses), the IRS will charge you interest and penalties on your unpaid balance. At least 90% of your tax liability must be paid on time in order to avoid the late payment penalty. Therefore, it is in your best interest to pay as much as you can by the original deadline. Here are the ways you can make an electronic tax payment with your tax extension application:

Electronic Funds Withdrawal (EFW) Directly from Your Bank Account

If you electronically file your tax extension application, you also have the option of paying your taxes electronically. TaxExtension.com allows customers to pay their taxes using Electronic Funds Transfer (EFW), which withdraws the amount from your bank account and sends it directly to the IRS. TaxExtension.com is an Authorized IRS e-file Provider, so you can trust that your information is kept secure and shared with no one else. You may want to contact your banking institution to make sure they can process EFW payments. You will need to provide your bank account and routing numbers to validate the online transaction.

Taxpayers who choose to pay their taxes electronically will need to agree to the following statement:

“I authorize the U.S. Treasury and its designated Financial Agent to initiate an ACH electronic funds withdrawal entry to the financial institution account indicated for payment of my federal taxes and the financial institution to debit the entry to this account. To revoke a payment, I must contact the U.S. Treasury Financial Agent at 1-888-353-4537 no later than 2 business days prior to the payment (settlement) date. I also authorize the financial institutions involved in the processing of the electronic payment of taxes to receive confidential information necessary to answer inquiries and resolve issues related to the payment.”

Making a direct payment online is easy and convenient, and the EFW option allows taxpayers to electronically submit their tax form AND make an online payment simultaneously. Once the transaction is completed from your end, an authorization/confirmation letter will be delivered to you on behalf of the EFW system. It is advised that you keep this ‘receipt’ safe so that you have a record of your payment to IRS.

Check or Money Order

If you would prefer making your individual tax payment using a check or money order, you can do so by mailing it with the appropriate tax form or voucher to the IRS. Even if you choose to e-file your tax extension online, you can still opt to pay by check or money order. Simply print out your Form 4868 and mail it, with payment, to the address listed on the form Instuctions.

Write out your payment to “United States Treasury.” Also include your Social Security Number (or Tax ID#), phone number, and write “[applicable tax year] Form [#]” (such as “2014 Form 4868”) on the check or money order. Make sure NOT to stape or attach your payment to the tax form that you’re mailing. And finally, do not send cash!!

 

 

Getting a personal tax extension means you will have an additional 6 months to file your income tax return. This means your filing deadline moves from April 15 to October 15. On the other hand, if you’re requesting a business tax extension, your filing deadline will be extended either 5 or 6 months depending on the type of business entity. This means your filing deadline moves from April 15 or March 15, to September 15.

One of the most important things to remember is that your tax liability must still be paid by the original deadline (April 15 for most individuals, and March 15 for most businesses). A tax extension only extends the amount of TIME you are given to FILE your return.

You will be asked to provide an estimate of your Federal tax liability on the tax extension application — Form 4868 for individuals, or Form 7004 for businesses. You are expected to pay the full amount due on time. However, the IRS understands that it may be difficult to calculate the exact number (before you’ve fully prepared your return), and so you’re exempted from the Late Filing Penalty as long as you pay at least 90% of the taxes owed by the original due date.

If you don’t pay your income tax liability on time, you will be subject to interest and penalties charged by the IRS. Therefore, you should try to pay as much as you can by the original deadline.

Here is a description of the fees that can apply to your unpaid taxes:

Failure-to-File Penalty

Also known as the “late filing penalty,” this fee may be assessed if you do not file your tax return (or tax extension application) by the proper due date. This deadline is April 15 for most individual taxpayers, and March 15 for most businesses.

If you don’t file on time and you owe tax, the total failure-to-file penalty is 5% of your unpaid tax. It is charged each month (or part of a month) that your tax return is overdue, up to a maximum of 5 months. If your tax return is over 60 days past due, the minimum penalty is either $135 or 100% of the tax owed, whichever is lower.

Failure-to-Pay Penalty

Also known as the “late payment penalty,” this fee may be assessed if you do not pay your income tax liability by the proper due date. This deadline is April 15 for most individual taxpayers, and March 15 for most businesses.

Even if you file a return, you will incur a late payment penalty if the full amount of tax owed is not paid on time. This penalty is 0.5% of your unpaid tax; charged each month (or part of a month) that your tax is overdue, up to a maximum of 25%. Note that the failure-to-pay penalty is raised to 1% if your tax remains unpaid 10 days after the IRS issues a “Notice of Intent to Levy.” Conversely, if you file by the proper deadline, the failure-to-pay penalty drops to 0.25% for each month there is an Installment Agreement in place.

Interest Charges

In general, the IRS charges interest on any unpaid tax. Interest is assessed every day, from the original deadline of the tax return up until the date the tax is paid. The interest rates are determined quarterly and are based on daily compounding. The rate of interest for taxpayers (other than corporations) is the Federal short-term rate plus 3 percentage points. For the first quarter of 2015, the interest rate is 3% for underpayments of tax.

What If You Can’t Pay Your Taxes On Time?

There are a few options for those who cannot pay their tax liability by the deadline. You can request to set up an “Installment Agreement” with the IRS, which would allow you to pay down your tax debt by making monthly payments. Tax Form 9465 (Installment Agreement Request) can be used to apply for an IRS payment plan. In some cases, the IRS will consider an “Offer in Compromise” which allows the taxpayer to pay less than what they owe, either through a lump sum payment or installment plan. Finally, certain taxpayers can request an extension of time to pay by filing Tax Form 1127 (Application for Extension of Time for Payment of Tax Due to Undue Hardship). Need help? Visit the IRS site for how to set up an IRS payment plan.

Conclusion

Avoid the crippling late fees and interest charges! E-file your personal extension or business extension online today, and pay your taxes with your extension. It couldn’t be any easier!

If you have any questions, feel free to contact the TaxExtension.com Support Team.

 

 

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.

 

If you run a charity or non-profit organization, and you are classified as “tax exempt” under Section 501(a) of the Internal Revenue Code, you are probably familiar with IRS Form 990.

Form 990: Return of Organization Exempt from Income Tax

This form is used by charities and non-profits to report activities to the IRS each year. Form 990 has 12 pages and 12 parts, and requires the organization to provide details about donations, management, and pay structure.

You must file Form 990 for a tax-exempt organization if either of the following apply:

• The organization’s gross receipts are $200,000 or more for the year, or

• The organization’s total assets are $500,000 or more for the year

Form 990 is due by the 15th day of the 5th month following the close of the tax year (May 15 for calendar year taxpayers).

It is quite common for non-profit groups to be overwhelmed and understaffed, which means that getting a tax extension can really help. With extra time to file, you can make sure that your tax return is completed accurately and in compliance with the law. To get a tax extension for Form 990, use Form 8868.

Form 8868: Application for Extension of Time to File an Exempt Organization Return

If you run a tax-exempt organization — whether you’re a director, manager, or administrator — you may want to look at requesting a Federal tax extension. Charities and non-profit organizations can apply for a tax extension using Form 8868. There are two types of extensions that can be obtained with Form 8868:

• An automatic 3-month tax extension (6 months for corporations filing Form 990-T)

• An additional (not automatic) 3-month tax extension

To request the automatic 3-month extension, only fill out Part I of Form 8868. As long as you properly complete and file Form 8868 by the deadline, you will be granted the automatic extension. To apply for the additional (not automatic) 3-month extension, only fill out Part II of Form 8868. Note that you cannot apply for both the automatic and additional tax extensions at the same time.

As you go over Form 8868, you’ll notice that the IRS requires you to provide a reason for needing the tax extension. This requirement is different than the rules for requesting a personal extension (Form 4868) or a business extension (Form 7004). Also remember that you must still pay any tax balance due by the original deadline.

For more information about tax-exempt organizations, see IRS Publication 557 (Tax-Exempt Status for Your Organization) and IRS Publication 4221-NC (Compliance Guide for Tax-Exempt Organizations). If you have any questions, feel free to contact our Support Team.

 

 

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.

 

Do you ever feel like the IRS is speaking an entirely different language? When it comes to taxes, trying to understand the terminology can be difficult and confusing. That’s why TaxExtension.com has compiled this list of definitions for commonly used terms (arranged alphabetically).

 

1040 Tax Form

IRS Form 1040 is the U.S. Individual Income Tax Return. It is the standard “long form” used to report personal income to the Federal government each year. While this form takes longer to complete (than the 1040A or 1040EZ), it offers taxpayers more opportunities to lower their tax burden. The deadline for Form 1040 is April 15 for calendar year taxpayers.

1040A Tax Form

IRS Form 1040A is also called the U.S. Individual Income Tax Return. It is the “short form” version of the regular 1040 (although it’s longer than the 1040EZ). Taxpayers of any filing status can use Form 1040A to report most income, credits, and deductions to the IRS — but not itemized deductions. The deadline for Form 1040A is April 15 for calendar year taxpayers.

1040EZ Tax Form

IRS Form 1040EZ is the Income Tax Return for Single and Joint Filters With No Dependents. It is the shortest version in the 1040 series — hence the letters “EZ” (it’s the “easy” form) — used to report personal income to the Federal government each year. This return can only be used by taxpayers with zero dependents, whose filing status is “single” or “married filing jointly,” and whose income is below a certain level. The deadline for Form 1040EZ is April 15 for calendar year taxpayers.

1040NR Tax Form

IRS Form 1040NR is the U.S. Nonresident Alien Income Tax Return. If you are not a U.S. citizen, you must determine if you’re a “resident alien” or “nonresident alien” for Federal income tax purposes (via the Green Card Test or the Substantial Presence Test). Form 1040NR is used by nonresident aliens to report personal income to the U.S. government each year. The deadline for Form 1040NR is April 15 for calendar year taxpayers.

1040NR-EZ Tax Form

IRS Form 1040NR-EZ is the U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents. It is the “short form” version of the 1040NR (above); just like Form 1040EZ is the shorter version of the 1040. If you are not a U.S. citizen, you must determine if you’re a “resident alien” or “nonresident alien” for Federal income tax purposes (via the Green Card Test or the Substantial Presence Test). The deadline for Form 1040NR-EZ is April 15 for calendar year taxpayers.

4868 Tax Form

IRS Form 4868 is the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. It is used by individuals to request an automatic 6-month personal tax extension from the IRS. Form 4868 can extend the deadline for Form 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040-PR, or 1040-SS. Note that this does not extend the deadline for tax payment, only for filing. Form 4868 must be filed by the original due date of your return to avoid IRS penalties and interest.

7004 Tax Form

IRS Form 7004 is the Application for Automatic Extension of Time To File Certain Business Income tax, Information and Other Returns. It is used by taxpayers to request an automatic 5- or 6-month business tax extension from the IRS. Form 7004 is designed for corporations, partnerships, limited liability companies (LLCs), estates, trusts, and more. Note that it does not extend the deadline for tax payment, only filing. Form 7004 must be submitted by the original due date of your return to avoid IRS penalties and interest.

April 15

Also referred to as “Tax Day,” this date should be familiar to nearly everyone. April 15 is the general deadline for filing personal income tax returns and paying taxes to the IRS. While you typically cannot get an extension of time to pay your tax balance, you can apply for a filing extension using Form 4868.

Calendar Year

Taxpayers can generally choose to file based on the calendar year or the fiscal year. The term “calendar year” is used to define the 12-month tax period that starts on January 1st and ends on December 31st. The deadlines for the annual returns of calendar year taxpayers are usually March 15 for businesses and April 15 for individuals.

e-file

E-filing (a.k.a. “electronic filing”) is an increasingly popular method for reporting taxes. IRS e-file helps reduce the amount of paperwork as well as the amount of time it takes to process tax forms. When you e-file using an Authorized IRS e-file Provider like TaxExtension.com, you know that your personal information is being protected. You can e-file Form 4868 or e-file Form 7004 in just a few minutes and skip those long lines at the Post Office.

Electronic Federal Tax Payment System (EFTPS)

The EFTPS is a free online tax payment service that’s provided by the U.S. Department of the Treasury. EFTPS caters to individuals, businesses, tax professionals, payroll services, and government agencies, and it can be used to pay all Federal taxes. You can choose to pay by telephone or online via the official EFTPS website.

Electronic Funds Withdrawal (EFW)

EFW is a convenient option that allows taxpayers to e-file and e-pay the taxes they owe in one step, while keeping personal information secure. For example, if you’re filing an extension at TaxExtension.com, you have the option to make an online tax payment with your extension request. With EFW, the amount you specify will be withdrawn from your bank account and sent directly to the IRS. This helps you avoid any interest and penalties assessed on unpaid tax.

“Failure to File” Penalty

Also known as the “late filing penalty,” you will incur this charge if you owe tax to the IRS and you neglect to file on time. The penalty is 5% of the unpaid tax, assessed each month your return is late, up to a maximum of 5 months. If your return is more than 60 days late, the IRS will charge a minimum penalty of $135 or 100% of the tax due (whichever is less).

“Failure to Pay” Penalty

Also known as the “late payment penalty,” you will incur this charge if you have an outstanding tax balance, even if you’ve filed a return. The penalty is 0.5% of the unpaid tax, assessed each month your tax remains unpaid, up to a maximum of 25%. The penalty increases to 1% if your tax is still unpaid 10 days after the IRS issues a “Notice of Intent to Levy.” The penalty decreases to 0.25% if you file your tax return on time and set up an IRS payment plan.

Fiscal Year

Taxpayers can generally choose to file based on the calendar year or the fiscal year. The term “fiscal year” is used to define the 12-month tax period that starts on October 1st and ends on September 30th. The fiscal year is broken up into 4 quarters: October 1 to December 31 (1st quarter), January 1 to March 31 (2nd quarter), April 1 to June 30 (3rd quarter), and July 1 to September 31 (4th quarter). If a corporation files based on the fiscal year, its annual return is due by the 15th day of the 3rd month after the close of its tax year.

March 15

Most businesses are required to file their annual Federal tax return by this due date.

October 15

If you were granted an automatic 6-month personal tax extension (using IRS Form 4868), your tax return must be filed by this extended due date.

“Out of the Country”

You may be eligible for an automatic 2-month tax extension if you are a U.S. citizen or resident and you’re out of the country at the time your return is due. No official request or tax extension application needs to be filed to obtain the automatic 2 months, which moves the due date to June 15 (for calendar year taxpayers). However, Form 4868 should be used to request an additional 4-month tax extension, moving the deadline to October 15 (for calendar year taxpayers).

September 15

If you were granted an automatic 5- or 6-month business tax extension (using IRS Form 7004), your tax return must be filed by this extended due date.

Tax Liability

In simple words, this is the total amount of tax that you (as an individual or a business) owe to the IRS. When you are asked to provide your total tax liability for the year, it refers to the total amount of tax that’s assessed on your income before taking into consideration any credits or payments (such as Federal income tax withheld or estimated tax) made during the year.

Taxpayer Identification Number (TIN)

The IRS uses a variety of identification numbers for the administration and enforcement of tax laws. These include the following ID numbers: Social Security Number (SSN), Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN), Taxpayer Identification Number for Pending U.S. Adoptions (ATIN), and Preparer Taxpayer Identification Number (PTIN). You are required to provide your unique TIN on your tax returns, statements, and other tax documents. Visit the IRS website for information on how to apply for a particular TIN.

 

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

 

 

Applying for a tax extension can be a very smart choice. A tax extension gives you more time to gather all your documents and make sure you’ve claimed every tax break you’re eligible for. You can obtain a tax extension even if you’re not sure you need one. It’s always better to be safe than sorry!

Plus, you are not alone when it comes to requesting a tax extension. Each year there are millions of individuals and businesses that file tax extensions online. Listed below are some of the biggest benefits of getting a tax extension.

You have more time to gather documents and information.

Even though April 15 comes around every year, a lot of people find themselves scrambling at the last minute to file their return. Don’t rush through the tax preparation process! You could miss out on valuable tax credits and deductions, or even recent changes to tax laws, that can save you money. A tax extension gives you some breathing room, as well as the opportunity to properly prepare your tax return.

There are no tests or requirements for obtaining a tax extension.

You are eligible for a tax extension without having to provide the IRS with a reason. The IRS grants automatic tax extensions to anyone who submits the application on time (Form 4868 for individuals, and Form 7004 for businesses). No questions asked! All you have to do is provide some personal information (as it would appear on your tax return) and file your request by the original deadline of your return.

A tax extension helps prevent IRS late fees.

Getting a tax extension can help you avoid the IRS late filing penalty, which is assessed when a taxpayer fails to file their return on time. If you e-file your tax extension using an Authorized IRS e-file Provider like TaxExtension.com, you also have the option of paying your taxes online. By electronically submitting your tax extension application and tax payment on time, you can avoid incurring the IRS late payment penalty and interest charges.

You can make life easier by e-filing a tax extension.

If you’ve ever filed a tax return, you probably know how chaotic tax season can be — nonstop advertisements for tax services, stacks of paperwork, and lines at the Post Office. Take a break from the commotion! Apply for a tax extension online and you will get 6 extra months to prepare your tax return (or 5 months for certain businesses). E-filing is the easiest way to file a tax extension, plus you get email confirmation once the IRS approves your request.

 

If you have any questions, our friendly Support Team is here to help.

E-file your personal tax extension online today!

 

 

Getting a tax extension is easy. In fact, millions of taxpayers file tax extensions online every year. Tax extensions aren’t just for procrastinators — they’re for anyone who wants more time to prepare their tax return. A personal tax extension or business tax extension can be easily obtained by any taxpayer who files their application (Form 4868 or Form 7004) properly and on time. Having that additional time to gather your information and take advantage of tax breaks can really be a blessing.

Here are 6 important reasons why you might want to file a tax extension:

1. There are no eligibility requirements for a tax extension.

Any taxpayer is eligible to get a 6-month extension (5 months for certain businesses) from the IRS. All you need to do is fill out the extension application accurately and submit it by the original deadline of your return — March 15 for most businesses, and April 15 for most individuals. The IRS doesn’t ask you for a particular reason or any kind of explanation.

2. A tax extension gives you time to get your act together.

Simply put, if you can have the time to prepare a more beneficial tax return, why not take advantage of it? With a tax extension, you’ll have more time to gather documents and make sure you’ve claimed every tax credit and deduction you qualify for. An extension can also help prevent you from making mistakes on your tax forms. Don’t rush through your tax return — file a tax extension instead!

3. You may be able to avoid an IRS audit by getting a tax extension.

Certain tax returns are subject to auditing because they raise red flags at the IRS. However, filing a tax extension does not make you a target for IRS audit. In fact, it’s quite the opposite. The IRS tends to fill its audit quota in April when most people are filing their tax returns. So by the time your tax return is filed (up until October 15 with a tax extension), the IRS is no longer on high alert.

4. A tax extension can help you benefit from new tax laws.

As you probably know, tax laws and regulations are always being modified and updated. You may find that a change in tax law makes you eligible for certain/new deductions that you couldn’t claim before. This can help you lower your tax liability or get a bigger tax refund. A tax extension gives you more time to file, which means you may be able to wait until those new laws take effect before filing your tax return.

5. You will get more focused attention from your tax preparer.

March and April are always hectic months for professional tax preparers because this is when tax returns are due for individuals and businesses. You may have trouble booking an appointment during this time, and there’s a higher chance that your accountant could make an error on your tax form. A tax extension can solve that. You’ll find that tax accountants are much less busy after April, so if you hire someone they’ll be able to focus on your return.

6. A tax extension provides peace of mind during the craziness of tax season.

Getting more time to file your return means you can take a step back from the chaos of April’s filing season. If you e-file a tax extension using an Authorized IRS e-file Provider like TaxExtension.com, you will receive email confirmation as soon as the IRS approves your request. You can even pay your taxes online with your extension application, thus avoiding IRS penalties and interest. You can also rest easy knowing that TaxExtension.com’s robust security technology is keeping your personal data secure.

 

Feel free to contact our Support Team if you have any questions.

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