Missing the deadline to file your taxes can lead to serious penalties, and no one wants to owe more money than is absolutely necessary. If you follow our blog, you already know tips for last minute filers, such as submitting electronically through a certified accountant to speed up the process and ensure accuracy when rushed for time. However, with taxes due in just a few days, it’s time to put plan B into action. Filing your taxes early offers several benefits, but if you find yourself down to the wire, read on to learn how to get an individual income tax extension
Start with the proper form(s) from the Internal Revenue Service (IRS).
Applying for a tax extension can be done either electronically or by mail, but first, you will need to download federal Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return). If completed and filed by Tax Day, taxpayers in the country can receive a maximum 6-month extension for an individual income tax return from the IRS. A tax extension will give you more time to finish and file your tax return, but you will still have to pay your taxes as soon as you hit the April deadline.
If you happen to be a U.S. Citizen or resident alien abroad, you are allowed two extra months to file and pay your taxes without an extension or penalty, but late payments will still be charged interest. You can also apply for an additional four month extension past the two months that are already given, but payment will be due at that time.
Some parts of the US do not require an additional form for state income taxes, while others do. According to the Pennsylvania Department of Revenue, federal Form 4868 will suffice if you will be getting a refund on your tax return this year. However, if you owe money, you must also request an extension from the state through PA Form 276 (Application for Extension of Time to File). This can be done electronically or by mail.
Pay your taxes when you apply for an extension.
Again, an extension will give you more time to finish and file your tax return, but you will still have to pay up on Tax Day. Don’t let this deter you. Late payments will incur penalties and interest, but not as much as a failure-to-file penalty. In other words, it’s in your best interest to take the extension when needed, and pay in a timely manner. A certified accountant can help you estimate your liability when you file Forms 4868 and 276, and if you lack the funds to cover what is owed, the IRS will work with you to set up a payment plan.
Of course, if you know you are getting a refund, you don’t have to worry about paying when applying for an extension, but you will have to wait longer to see your money in the bank. At Drake Tax Services, we promise to always be open, honest and invested in your success, with care and personalized service that a small, local business can provide. If you reside in the Greater Philadelphia area and are in need of assistance, contact Drake Tax Services today.
Drake Tax Services has been serving the Greater Philadelphia area since 1997. Its founder, Anthony F. Drake, is a professional accountant and IRS approved tax preparer who specializes in local, state and federal tax returns for both individuals and small businesses.
