The IRS extension is very easy to get. People who need extra time to file their Federal taxes can simply fill out the very short IRS Form 4868; add a check for the taxes due and ship. This time extension allows the taxpayer up to six-months to finish preparing their taxes. Uh… Yes, I did say ‘add a check for the taxes due’.
Unfortunately, the IRS requires all taxpayers to pay their taxes by April 15 each year without exception. On some years, the date of April 15 is extended by a few days to cover natural disasters, or weekends, but the money that is owed on taxes is always due before any time extensions allowed through IRS Form 4868.
Taxpayers are told to estimate their taxes owing before filing for an IRS extension in time for filing. Some taxpayers estimate by doing a detailed calculation of their filing situation, and some estimate by grabbing a number out of thin-air. The IRS will accept both methods of estimation, but the latter method can run the taxpayer into troubles.
The IRS has the right to refuse your Form 4868 request for more time to finish your paperwork if the estimated taxes appear to be out-of-line. Taxpayers have already tried to fool the government by asking for an IRS extension in time for the purpose of getting out of payments. The IRS takes steps to guard against these tricksters now.
If the IRS extension for time is refused after you have filed it close to the April 15 due date, then all money owing is subject to late-fees and fines that can be as high as 0.5% added to your owing figure for each month that it is late. This is why it is best to try to give the government a true estimation and payment for the taxes that you owe.
There is a second way of getting an IRS extension of sorts that will increase the time that is required to fill out your paperwork properly. Simply get the paperwork created as close to perfect as you can do within your circumstances and send it in on time by April 15th. The government allows you three years to go back and fix mistakes on taxes.
IRS extension Form 4868 is available online free to print. Some tax preparation services offer to allow you to fill one out for a fee. Before paying to have one of these forms made out for you, go to the IRS site and see what the Form 4686 looks like. Many people find that it is very easy to mail their own IRS extension form themselves, without help.
Leave a Reply