Category: Tax Deductions, Credits, & Strategies

 

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!

 

 

A tax extension gives you additional time to file your return. The length of your extension depends on the type of tax extension you’re requesting — personal or business, as well as what type of business.

You must file your tax extension by the original deadline of your tax return. Therefore, the due date for your tax extension is based on what type of tax return you want the extension for. Read on to learn about the different due dates for IRS tax extensions.

Deadlines for Personal Income Tax Extensions

A personal tax extension can be obtained by filing IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). This application extends the filing deadline for the following personal tax returns: Forms 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040-PR, and 1040-SS. The original deadline for filing your personal tax return is April 15, which means that the due date for Form 4868 is also April 15. An IRS-approved personal tax extension will give you 6 extra months (until October 15) to file your return.

Deadlines for Business Income Tax Extensions

A business tax extension can be obtained by filing IRS Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns). There are 2 main due dates for business tax extensions. The first deadline applies to larger business entities (including C corporations, S corporations, REMICs, REITs, etc.) — it is the 15^th day of the 3^rd month following the end of the tax year (March 15 for calendar year taxpayers). This first group is eligible for a 6-month business tax extension, which moves their filing deadline to September 15 (for calendar year filers). The second due date applies to partnerships, trusts, most estates, and some multi-member LLCs — it is the 15^th day of the 4^th month following the end of the tax year (April 15 for calendar year taxpayers). This second group is eligible for a 5-month business tax extension, which moves their filing deadline to September 15.

Deadlines for U.S. Taxpayers Who Are “Out of the Country”

If you are out of the country when your tax return is due, you will be granted an automatic 2-month personal extension from the IRS. No application has to be filed. For calendar year taxpayers, this moves their filing deadline from April 15 to June 15. But, if you want to get an additional tax extension, you can file Form 4868 to request another 4 months to file. In this case, Form 4868 must be submitted by June 15 in order to get the additional extension, which moves the final filing deadline to October 15. Note that these due dates also apply to members of the U.S. military who are stationed overseas in non-combat areas.

Deadlines for U.S. Military Personnel

Members of the military who are deployed in an active combat zone or contingency operation area are given an automatic 180-day extension starting on the day after their last day in that area. A military member who spent time in a hospital as a result of injuries sustained in an active combat zone or contingency operation area will also receive a 180-day extension, starting on the day after their last day in the hospital. No tax extension application needs to be submitted to receive these automatic military extensions.

Deadlines for Tax-Exempt Organizations

Most charities and non-profits that qualify for tax-exempt status (under Section 501(a) of the Internal Revenue Code) are required to file an annual return using IRS Form 990. Form 990 is due by the 15^th day of the 5^th month following the end of the tax year (May 15 for calendar year taxpayers), which means a tax extension must be filed by that same date. You can get an extension for Form 990 by using Form 8868 to request an automatic 3-month extension, moving the filing deadline to August 15 (for calendar year filers). If you want another 3-month extension top of that, file Form 8868 by the extended deadline (August 15) to receive an additional tax extension, which moves the filing due date to November 15 (for calendar year filers).

 

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

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

 

 

When it comes to filing and paying your taxes, you can never have too much information — and tax extensions are no exception. There are several myths surrounding income tax extensions, but TaxExtension.com is here to set things straight. Here are some common misconceptions about tax extensions:

1. Tax extensions are rare… Everyone else files their taxes on time.

Contrary to popular belief, tax extensions are actually very common. In fact, the statistics tells us that about 10 million taxpayers file tax extensions every year. Not only does the Federal government offer tax extensions, but State governments provide them as well. Extensions are easy to request and available to any taxpayer who needs more time to file.

2. I can’t get a tax extension because I don’t have a good enough reason.

Whether or not you have a personal excuse for getting a tax extension is irrelevant because you don’t need one. The IRS does not ask for an explanation as to why you’re requesting an extension. All you need to do is complete and submit the tax extension application (Form 4868 for individuals, or Form 7004 for businesses) by the proper deadline and you will be granted an automatic extension.

3. I’ll need to hire a tax professional to help with my tax extension.

It’s easy for anybody to apply for a tax extension, especially if you choose to e-file your tax extension. An Authorized IRS e-file Provider like TaxExtension.com can help you electronically submit an extension request in under 10 minutes. Our easy-to-use online application takes you through the tax extension process in 3 easy steps. And if you have any questions, our dedicated Support Team is here to help.

4. I might be ready to file in July, but I’d have to wait until October.

A tax extension gives you more time to file, but that doesn’t mean you need to wait until the extended deadline (October 15 for individuals) to file your return. You are allowed to submit your tax return at any time during the extension period. You can still even file your tax return by the original deadline (April 15 for individuals) if you so choose. A tax extension is designed to give you that extra time but you are not forced to use it all.

5. A tax extension will increase my odds for being audited by the IRS.

Don’t fall for this one! A tax extension will not trigger a tax audit. In fact, the opposite is actually truer. If you get a tax extension and then file your return in the early fall, you’re more likely to be excluded from the audit pile. This is basically because the IRS has already filled their quota during the height of tax season (March-April). Therefore, you may be able to escape the harshest IRS scrutiny by leaving your tax return out of the main stack and filing a tax extension instead.

 

 

These days, many American are struggling financially as our economy remains stagnant and unemployment grows. While you may think that rushing to file your tax return is the best way to get a faster tax refund, it’s also a good way to make mistakes. Consider this: a tax extension gives you more time to file, which means you have time to gather all the appropriate documents and even take advantage of new tax laws.

Here are some reasons why getting a tax extension can be very beneficial, especially in a slow economy:

You Have More Time to Prepare Your Tax Return

You know the old saying, “Time is money.” A tax extension gives you that extra time to make sure you’ve claimed every tax deduction and credit you’re eligible for, which can help lower your tax liability or increase your tax refund. You can focus on preparing the most beneficial tax return possible so you don’t end up paying the IRS a penny more than necessary.

You Can Avoid IRS Late Fees

Getting a tax extension means you can avoid incurring the IRS penalty for failing to file your tax return on time. But remember that you’re still expected to pay your tax balance by the original deadline. If you have to use the money for something else instead and you don’t pay your taxes on time, the IRS will likely charge interest and payment penalties on your unpaid balance. However, those fees will be lower if you’ve filed a tax extension. Additionally, you may discover that the IRS fees are less than the interest on your other debt(s). In that case, you can decide whether it’s better for you to pay the IRS or pay down other obligations first.

Patience Is a Virtue That Pays Off

Whether we like it or not, legislators are constantly making new laws and adjusting the existing rules. A tax extension gives you extra time to file, and during that period you may have the chance to take advantage of a new tax law that just went into effect. It could be in the form of a reduced interest rate or a lower income threshold for claiming a tax credit. Have patience and take the time to prepare your tax return in a way that benefits you the most.

Give Everyone a Break This Season

There is no harm in filing a tax extension, and you don’t need to give a reason for requesting one. With a tax extension, you can skip the chaos of tax season and give yourself a break. You’ll also notice that tax professionals are very busy in March and April — many confess to working 18-hour days with little sleep. So rather than having your appointment squeezed into their schedule, you can visit them in July or August instead. This will allow your tax preparer to focus on you. Even the IRS likes tax extensions because it decreases the number of returns that have to be processed in the spring.

A Change in the Wind Can Lead to a More Complex Tax Return

A lot of Americans are dealing with the consequences of losing their jobs or homes due to a bad economy and lack of solid financial advice. If you’ve had to move, sell some assets, or make a withdrawal from your retirement account, those things will complicate your tax return. A tax extension allows you to have more time to make sure you submit an accurate tax return. Consider using an Authorized IRS e-file Provider like TaxExtension.com to apply for an extension online. It only takes a few minutes to e-file your request and you get 6 extra months (5 months for certain businesses) to prepare your tax return.

 

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

 

 

If you’ve never applied for a tax extension before, the process can seem a bit confusing at first. The key is to familiarize yourself with the relevant information and learn what steps you need to take in order to properly file a tax extension.

Here are some useful tips to help you get a successful tax extension from the IRS:

Know Which Tax Form to Use

There are a few different tax forms that are used to request Federal extensions. IRS Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) is designed for individual taxpayers seeking a 6-month personal tax extension. IRS Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) is designed for taxpayers seeking a 5- or 6-month business tax extension.

Know the Deadline for Your Tax Extension

Your tax extension application must be filed by the original due date of your tax return. Form 4868 extends the filing deadline for personal income tax returns, which are due by April 15 (for calendar year taxpayers). Therefore, Form 4868 must be submitted to the IRS by April 15 to get a personal tax extension. On the other hand, Form 7004 extends the filing deadline for business tax returns, which are due by March 15 or April 15 (for calendar year taxpayers) depending on the type of business entity. Therefore, Form 7004 must be submitted to the IRS by that date (March 15 or April 15) to get a business tax extension.

Provide Accurate Information

The IRS will grant an automatic tax extension to anyone who requests it on time — as long as you’ve correctly filled out the application form (Form 4868 or Form 7004). Your name, address, and Taxpayer Identification Number (TIN) have to be accurate and must match IRS records. Otherwise, the IRS will reject your tax extension request. In fact, most rejections are caused by typing errors, or a name that doesn’t match the Social Security Number (SSN) provided. While it’s rare, TaxExtension.com customers who are rejected can get help fixing their application and then resubmit it for free.

Pay Your Tax Balance with Your Tax Extension

Remember that a tax extension gives you more time to file your return. It does not give you more time to pay your tax balance, which is still due by the original deadline of your tax return. If you fail to pay your tax balance in-full, the IRS will charge interest and penalties on your unpaid balance. The best option is to use an Authorized IRS e-file Provider like TaxExtension.com, where you can e-file a tax extension and pay your taxes online at the same time.

Don’t Forget About Your State Tax Extension

Most of the information out there is focused on Federal tax extensions from the IRS. But what about getting a State tax extension too? All state governments actually provide tax extension options as well, although the tax laws are different in each state. Make sure to check with your state for its tax extension rules before proceeding. Visit our State Tax Extensions page for information about your particular state.

 

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

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

 

 

It’s easy for things to get complicated whenever you’re dealing with taxes and the IRS. Luckily, getting a tax extension is relatively easy and stress-free — especially when you use an Authorized IRS e-file Provider like TaxExtension.com. Nonetheless, mistakes can still be made when filing a tax extension application. Here are some common oversights that you should be aware of when applying for your Federal tax extension.

DO NOT ASSUME THAT:

A tax extension gives you more time to pay your taxes.

A tax extension provides you with extra time to file your return. It does not give you more time to pay your tax balance, which is still due by the original deadline of your return. If you don’t pay your taxes by the proper due date, the IRS will assess penalties and interest on the unpaid balance. You can avoid this by e-filing your tax extension at TaxExtension.com, where you can also make an electronic tax payment with your extension request.

Tax extensions are automatic, so you don’t need to apply.

The IRS calls tax extensions “automatic” because they are automatically granted as long as the taxpayer completes and submits an extension application (Form 4868 for individuals, or Form 7004 for businesses) on time. This means that you must file a proper tax extension request in order to receive the extra filing time. Also make sure to submit your tax extension by the original deadline of your tax return.

You need to file a tax extension even if you’re expecting a tax refund.

This is one of the best-kept secrets about Federal tax extensions. Taxpayers who are expecting a tax refund from the IRS actually don’t need to file an extension application (Form 4868 or Form 7004). If you owe zero taxes, any penalty that the IRS could charge would come out to $0 (because penalties are assessed as a percentage of your unpaid tax). Therefore, there is no IRS penalty for filing late as long as you have no tax balance. But you need to be sure that your owe zero taxes before taking advantage of this loophole. Also remember that you cannot get your tax refund until/unless you file your tax return.

The IRS will grant you more than 6 months to file.

You can easily file for a 6-month tax extension (or 5 months for certain businesses), but it’s very difficult to get additional time beyond that. The IRS is not in the habit of granting second or additional tax extensions, except in a few specific instances — this includes special provisions for U.S. military members, as well as U.S. taxpayers who are “out of the country” at the time their tax return is due. All other taxpayers are expected to file their return by the established deadline.

 

If you have any questions, you can contact our Support Team.

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

 

 

Are you looking for a good reason to file a tax extension? Even though the IRS doesn’t require you to provide one, you may be wondering why so many people request tax extensions each year. Whether or not you already have an excuse of your own, the team at TaxExtension.com has put together a list of more than 100 reasons to get a tax extension. Feel free to use them!

1. The tax extension application (Form 4868 or Form 7004) is easy to complete.

2. The IRS doesn’t care why you want an extension and doesn’t ask for a reason.

3. Your chances of being audited by the IRS are lower if you get a tax extension.

4. You can e-file a tax extension online in just minutes.

6. Certain life changes have made your tax situation more complex (such as selling a house, having a child, or getting divorced), so you need more time to prepare your return.

7. You are recently unemployed and unsure how that affects your taxes.

8. E-filing your tax extension allows you to save money on postage.

9. A tax extension can help you avoid the IRS late filing penalty.

10. Gathering documents and preparing an income tax return by April is just too much.

11. You have never filed taxes before.

12. You had recently had a child and have questions about your tax situation.

13. You’re in the middle of moving to a new residence. Aggh!

14. The holidays, the Super Bowl, and spring cleaning have filled up your schedule.

15. If you get a tax extension, you’ll have 6 extra months to file (or 5 months for certain businesses).

16. You started a company and all your focus has been on growing your business.

17. You were recently granted U.S. citizenship, so the IRS taxation process is new to you.

18. Your tax situation became more complex due to a home foreclosure.

19. You have the flu.

20. You’re still waiting for some tax documents to arrive in the mail.

21. Your budget is tight and you can’t afford to pay a professional tax preparer right now.

22. When you e-file your tax extension, you can electronically pay your taxes at the same time.

23. You thought you could prepare your own tax return without any help, but now you’re thinking about hiring a tax pro.

24. A tax extension means you can sit back and watch everyone else rush around this April.

25. Why file your tax return now when you have the option to file later?

26. E-filing your tax extension is eco-friendly and helps save paper.

27. You are a member of the United States military and are deployed overseas.

28. You recently got divorced and your life just got more complicated — tax-wise and otherwise.

29. You’d rather spend time on Facebook or Twitter, or Instagram, or Pinterest, or Snapchat….

30. You were instructed to file for a tax extension by your accountant.

31. You have a lot on your plate and filing taxes just isn’t a priority right now.

32. You found an amazing deal for taking that dream vacation and you don’t want to miss out.

33. You’d rather stay in bed.

34. You despise doing taxes each year.

35. A tax extension is basically guaranteed! TaxExtension.com helps you through each step of filing an extension and over 97% of customers are IRS-approved.

36. Some of your tax documents are missing. You’re not sure what happened, but you suspect the dog.

37. You got audited by the IRS last year and now it’s time for payback.

38. You’re a [insert profession here], not a tax preparer!

39. The tax prep software program you chose isn’t providing the help/support you need.

40. If you e-file your tax extension, you can e-pay your taxes via Electronic Funds Withdrawal (EFW) directly from your bank account.

41. You just realized that you’re missing an important tax form.

42. You can’t pay your taxes on time, but getting an extension means the IRS penalty charges will be lower (than if you didn’t get one).

43. You want to get a tax extension now just in case you need it later on.

44. You’re an entrepreneur and you have several different businesses.

45. Your accountant is overbooked and can’t make time to see you.

46. What happens in Vegas stays in there!

47. You want to avoid incurring IRS late fees.

48. Your tax situation is different now because you got married recently.

49. The cost of getting a tax extension is nothing compared to the IRS penalties that are assessed if you don’t get one.

50. Your business is extremely busy during Q2.

51. You will be traveling overseas during the normal April tax deadline.

52. Currently, you only have an estimate of your annual income tax liability.

53. Remembering your name, address, and Social Security Number is all the personal info you need to get a tax extension.

54. You’d like to steer clear of the Post Office this April.

55. You experienced a death in the family, which has derailed some things and/or changed your tax situation.

56. You still have a tax issue that was not resolved the year before.

57. Almost 10 million taxpayers filed extensions last year!

58. It only takes one visit to your accountant to get a tax extension.

59. You recently relocated and you’re still waiting to receive certain documents in the mail.

60. You have to re-familiarize yourself with QuickBooks first.

61. You get a confirmation email with IRS-approval if you e-file your tax extension.

62. March Madness has occupied most of your free time.

63. You can file a tax extension online in less than 10 minutes. It’s really that fast and simple.

64. Even if you have nothing new to report on your annual tax return, you still have to apply for a tax extension to extend your filing deadline.

65. Your tax situation has changed because you recently sold off a bunch of investments.

66. You’re having trouble finding a good time to meet up with your business partner.

67. You misplaced a document.

68. More and more people are discovering the advantages of a tax extension. Why shouldn’t you be one of them?

69. You have yet to receive Schedule K-1 for your business tax return.

70. You forgot that the deadline for (most) business taxes is March 15, and now you’re way behind schedule.

71. You just entered the world of business ownership and haven’t figured out how to file yet.

72. You misplaced your W-2.

73. You’re not sure whether you qualify for certain tax breaks, or how to claim them.

74. Your spouse usually files a joint return for both of you, but he/she is out of the country.

75. You don’t need to pay a tax professional to help you file a tax extension — you can easily e-file it yourself using TaxExtension.com.

76. You have to travel for work.

77. Your car broke down.

78. The doctor said you should stay away from high-stress situations, and that definitely includes the chaos of April’s tax season.

79. You are still trying to recover from the brutal winter storms.

80. Your accountant moved or closed their business, and you need more time to find a new one.

81. You motto is “slow and steady.” A tax extension means you don’t have to rush through preparing your annual tax return.

82. Hmmm, now where is that 1099 form?

83. In April, there are long lines everywhere — at the Post Office, tax service companies, and local tax prep offices. Waiting in lines is your pet peeve.

84. You (and/or your spouse) are in the process of applying for a Taxpayer Identification Number (TIN) from the Federal government.

85. Your tax situation has been altered because you recently purchased a rental property.

86. A Federal tax extension can be electronically filed to the IRS from your personal computer.

87. After winning the lottery and spending a lot of the money, you have a lot of receipts to go through.

88. You can’t do your taxes at work.

89. A new tax law is taking effect in the summer and you want to take advantage of it.

90. You want your accountant to be totally focused on you, so you’re willing to wait for a meeting until after April.

91. Your fantasy sports team is kicking butt!

92. The April deadline is too close to Easter and you have to spend time with your family.

93. You’re pulling extra shifts at work, so there’s no time for anything else right now.

94. You’d rather be watching the Masters Tournament.

95. All your information was lost because the tax prep software program crashed.

96. You can file a tax extension every year if you want. Many people do!

97. It’s too cold outside.

98. It’s too hot outside.

99. The deadline in April is too close to your birthday. You plan on eating cake, not doing taxes.

100. You live by your superhero name, The Procrastinator!

101. Millions of individuals and businesses get tax extensions every year. You will never be alone.

102. What’s the big hurry? The IRS can definitely wait.

 

So there you have it. If you had any difficulty finding a reason to file a tax extension before, you should be able to come up with a number of reasons now! Of course, you can always reach out to the TaxExtension.com Support Team to get help with your online extension request.

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