IRS Tax Extension and other Income Tax Return Help » income tax extensions

Deadline IRS Tax Extension.

author2 — Mon, 21 Feb 2011 08:14:49 +0000

Most people do not understand how straightforward it truly is to file for a tax extension with the IRS. Why would you not want to extend the deadline from April eighteenth 2011 to October seventeenth 2011?

It cannot be any more straightforward.

Avoiding the April eighteenth rush is nice. CPA’s and tax corporations are probably totally booked and don’t have time they need to require an in depth examination of the clients statements.

But once you file for tax extension you gain the time to make a future appointment with the tax professional of your choice, who can then go over your situation in a far more relaxed setting. Or if you do not need to hire a tax preparer, it will give you more time to properly collect your tax documents at your own pace.

How To File An Extension

IRS extension can be requested by filing tax extension form 4868, that is the form for automatic extension on taxes. If you know that you owe the IRS, you must make a close estimate of the amount owed. The IRS applies interest for unpaid taxes if they’re not paid by the eighteenth. In the case that you owe taxes but can’t pay, the penalty for failure to pay before the IRS deadline is 0.5% per month, whereas the failure to file before the deadline is up to 5 % of the taxes owed per month. To avoid the risk of that penalty get extension on taxes and it will last until midnight October 17.

In order to get tax extension 2010 you will need to get your IRS Extension Form and all other tax filing documents post marked before and sent before midnight April 18 2010.

To make sure no extra interest charges are calculated over your owed taxes, estimate your owed taxes as good as you can and enclose a check with your estimate of the taxes owed.

Another option for IRS payments is to pay on-line (cost of a fee) by using a major credit or debit card and trusted websites; for a list visit List of IRS e-pay service providers and fees and read about safety A Secure Way to Pay All Your Federal Taxes.

For Tax Extenion 2010, it’s become more easier than ever to file for an IRS extension. Trusted IRS efile corporations like FileLater.comfor extension on taxes and streamline this method of extension on taxes for people and businesses for a tiny low fee.

Save some stress and hassle and make use of what’s offered by the IRS and extend your IRS Tax deadline.

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File For A Tax Extension Or Else.

author2 — Thu, 10 Feb 2011 09:17:20 +0000

Throughout our lives, we are taught to be punctual in our work and if we are late to notify our peers. Well, when it comes to taxes, this idea should be magnified ten times over.

One should always pay their taxes on time, but for various reasons (mostly financial), sometimes one afford to do so and one has to pay their taxes later. They simply just wait to pay rather than notifying the IRS. This can have severe consequences.

One of the more common penalties is that if you choose to not file for a tax extension you will be charged more than only your owed taxes; and as far as I know nobody likes paying more taxes.

If you are a business owner, the risk is to be audited and the outcome almost always is that they charge much more and your business could end up with a bad reputation as well.

The IRS can also place levies on various assets one has such as a bank account or your wages. In other words, the IRS can take as much out of each paycheck one works so hard for as it sees fit.

So when one needs to file late, they should first file for tax extension.

With the extension, the IRS will recognize that the taxes need some extra time to be paid and grant a six month extension ( FileLater.com ) without penalty. That way, no one loses any more money or has to pay more taxes than they have to, and no one has to give more to the IRS than they should.

Although the sound of penalties by the IRS might sound scary, knowing that you can easy avoid them by learning how to file an extension. At the same time, it is very good that the IRS allows for the federal tax extension filing so people can still be responsible and pay their taxes without being punished.

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Benefits Of eFiling your Tax Return.

author2 — Mon, 07 Feb 2011 15:10:06 +0000

It’s the same problem each and every year. You need to spend hours pouring over the most recent instructions for the federal and state 1040 forms which are only minutely different than last year’s, but you have to be sure you aren’t missing some evasive new tax law then another few hours compiling all your documents in an order than makes some sense.

Once that’s done, you begin the tedious process of computing each individual line and printing your responses in painstakingly neat hand writing just to know for absolute certainty that someone at the Internal Revenue Service won’t bounce your return back as unreadable.

Your return has been signed, placed in an eight by ten manila envelope and mailed to the IRS. Even though you mailed it registered, with return receipt requested no less, you worry that it never made it, that someone lost it, or that some small error will come up and push you beyond the looming April 15th deadline. If you haven’t started using computerized tax filing software, this probably isn’t so far from the truth. You may have heard of these programs and passed them off as not worth the investment. Each and every year, tax payers spend at minimum eight hours, and usually closer to fifteen to twenty hours, completing their tax returns. Even earning minimum wage, that eight hour time investment would have returned nearly sixty bucks at work substantially more than the cost of completing and eFiling your tax return online.

Not only does eFiling save you time, it saves you money. Since these programs are made to know the current year’s tax code, you can avoid many common mistakes. You don’t need to worry about incorrectly computing a specific line or claiming a deduction that isn’t actually deductible. Using these programs will prevent many seemingly minor errors which often result in hefty fees and fines from the IRS.Once you’ve completed your return on your computer, eFiling is the best way to submit it.

The IRS’s strict standards for eFile providers ensure that your return will be transmitted securely. With the “Free File” program, you may even be able to eFile your federal tax forms without any processing fees. Best of all, the eFile provider will keep you up to date on the status of your return, from submission to processing, so you never need to worry that the IRS hasn’t received it.

Because of the popularity of this method, all but two states (and those that don’t have an income tax system) also offer electronic systems to file state income tax forms. While the tax forms vary from federal to state, you almost always need the same information.

If you use tax software to complete and eFile your federal return, chances are you’ll be able to do the same with your state return.

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Filing For IRS Tax Extension.

author2 — Mon, 31 Jan 2011 16:26:02 +0000

It’s April 15 and you don’t have W-2, or you are yet to receive Form 1099. What to do then? Many people feel that IRS will not notice such a small deficiency and they proceed to file the return.

Not a good idea. You may be paying penalties as soon as the IRS will notice. There is no need to worry in such a situation.

There is an easy short term fix. Go file for a tax extension. It’s easy. It’s legal. And most important, it does not initiate tax audit!

There is a simple form which allows you to apply for a six month extension to file your tax return. It’s called Form 4868 and it is very easy to fill in. You can do it on your own; there is no need to take even the help of an accountant. The Form asks you basic details your name, address and social security number.

It also asks you to estimate the tax liability and in case any balance is due you are required to send it along with the Form. By making this payment if you are discharging 90% of your tax liability, then there is no worry at all. You are not subject to a late payment penalty or a late filing fee even. The Form is available very easily. Either you can take it from one of the IRS offices or you can order it by dialing the number 1-800-TAX-FROM (1-800-829-3676). At the time of filing the Form you’ll need information about your income tax return.

You can file this Form online. On filing this Form you will get an acknowledgement.You must see that you file this form before the due date of your return. You will get automatic extension.

And most important thing is you need not give IRS indeed any reason for filing an extension. So even if you’re lazy or you don’t want to think about filing that can be a valid reason for you! Form 4868 will give you time up to October 17 to prepare and send your return. And mind you, this extension application is for the payment of money, You must pay your money before April 18 if you think that is due to the government. And one more important thing, you can ask for extension only once.

No more extensions there after. You must file before October 17. The IRS can slap a late filing penalty which is five per cent per month of the tax unpaid by the due date. And on the top of this there is a penalty for paying late.

The late payment penalty may be waived if you can show a reasonable cause for nonpayment. If 90 per cent of your actual tax liability is paid before the due date and you may be considered to have a reasonable cause.

In any case you will be required to pay interest on the tax which is unpaid by the due date. This interest will continue until you pay the tax. Even if you say that you have a very good reason for non-payment, still as always interest is charged and recovered by the IRS.

Then there is one statute of limitation. It limits the power of IRS to audit your return. It gives the IRS three years. So for filing the return for 2010 which is due on or before April 18, 2011, the limitation date is April 15 to 2013. If IRS is unable to audit you within this period, then it is prohibited from challenging the deductions you claimed.

The only cause for taking action beyond this date is if the IRS is successful in proving that you have committed a fraud. But then the burden of proof lies always on IRS. It must prove that you had the intention to cheat.

If you file an extension application the statute of limitations begins from the actual filing date of the return and not from the date of filing the extension. If you are abroad If you are a citizen of U.S. or a resident and you’re out of the country on the due date for filing the return, you’ll get automatic extension of two months for filing your return. You need not file Form 4868.

So keep in mind that filing an extension does not initiate tax audit.

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Five Myths About Tax Extensions.

author2 — Tue, 18 Jan 2011 14:21:30 +0000

You think you know all you need to know about income tax extensions?

Think again.

Here are the five most common misconceptions:

The IRS doesn’t like it when people file for extensions, and they’ll probably turn me down if I don’t have a really good reason.

Wrong!

The IRS automatically gives a six-month extension to anyone who fills out the form correctly. They don’t even ask you why–because they don’t care. Many taxpayers, both individuals and businesses, routinely file for extensions every year just to ensure accurate, advantageous returns.

It will make me more likely to be audited.

Nope.

Statistically speaking, your chances of an audit may be lower when you file for an extension. Many people believe IRS agents are required to audit a certain number or percentage of returns every year, but they typically fill their quotas well before the October 17 extended filing deadline (the IRS won’t tell anyone their audit secrets, though).

It sounds complicated, so I’ll need an accountant to handle it.

No way.

Filing an income tax extension can be incredibly simple. The forms, IRS Form 4868 for individual income taxes, and/or Form 7004 for businesses are amongst the easier of the IRS forms.

I’ll be stuck waiting until October 17 to file my taxes, even if I’m ready in June or July.

Not true.

As with the standard IRS deadline, you can file your return anytime before then, whenever you’re ready. You can even file before the April 15 deadline (March 15 for businesses) if you have all your paperwork in order by then.

Nobody else does it.

On the contrary, more than 10 million individuals and over three million businesses file for tax extensions every year.

They're so common that even many state governments automatically grant extensions, whether you ask for them or not. It's a simple and straightforward way to give yourself plenty of time to file the best possible tax return.

Tax Preparation Software 2010

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Filing Tax Extension Don’t Miss Deadline.

author2 — Sun, 16 Jan 2011 13:10:40 +0000

Getting nervous for not being able to complete filing your income tax return before the 18 April deadline?

Then do not loose the opportunity to file your income Tax Extension 2010. Fill up the extension form online and get 6 months additional period for completing your return.

You are not supposed to be careless about paying your taxes because you may get penalized for late filing, late payments and for a fraudulent return as well. If you are not sure that you would be able to complete your task of filing your income tax return before the April 18th deadline, then you should, without forgetting, file for getting extension form the IRS.

The IRS will grant you, without asking any reason, a six month time for completing your task.
Most people, these days, make use of online software and facilities for filing tax return and tax extension online because it is easy and convenient.

Do IRS Taxes FREE!

It just requires entering the right information into the online extension form. Also you can think of filing extension with an IRS approved e-filing service provider ( FileLater.com ), because they can assist you complete your task properly and in timely manner.

Suppose your extension is rejected by the IRS for any reason, they will quickly help you solve the problem and will also let you re-send it for no charge. So, all depends on how you do with your Tax Extension 2010 form online. Once you file the extension form 4868 online, you might feel relaxed for getting a long-time reprieve. But you have to make use of this time for preparing your income tax return.

If you do not take benefit of six month period for getting you return prepared, the time will quickly lapse from your hands and you will again feel helpless for filing your return.

The best thing, once you file your extension form online, is to start getting necessary information so that it can become easier for you to file your tax return. Filing a tax return accurately before the deadline is not that much challenging task as it used to be. But now anyone can file extension form and get a six month more time for getting his or her return filed. If your going to get benefits of filing 2010 Tax Extension form online, you should start working quickly.

Please remember that each day you delay, will be a lapse from your six month extended time and you will end up frustrating finally not to be capable of filing your return before the deadline.

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The Advantages And Disadvantages Of Tax Extensions.

author2 — Fri, 14 Jan 2011 11:11:04 +0000

Advantages: More time.

Tax extensions do indeed give you extra time 6 months to be exact. Many people decide to file an extension knowing they will not be able to properly prepare their return before the deadline. In this instance, filing for an extension is really worth it, because there are certainly tax mistakes that can be costly when made. It’s really better to file an extension then an incorrect return.

May help prevent an audit.

Although many people assume any mistake will result in an audit, with tax extensions it is not the case. Filing a tax extension won’t increase your chance of being randomly selected for an audit. No penalty. You will not be fined, cited, or penalized for filing a tax extension. The IRS gives the public this extra inch in hopes that they will be more likely to get their money with less paperwork to worry about.

Stress relief.

In this economy, there is plenty of stress and worry to go around. Since there is no penalty for filing an extension, you may file one just to take some anxiety off of your shoulders. These days we can take all the stress relief we can get, and if you think filing an extension helps you focus on bigger problems, use that advantage.

No rushing to get your return in.

The worst thing you can do is rush your return. By rushing your return, you will either fudge the numbers or miss out on claiming deductions or credits you were eligible to claim. So, if it is nearing the deadline, and you know you do not have time to do it right, file an extension.

Disadvantages: You still need to pay.

Although filing an extension gives you more time to file your return, it does not give you more time to pay the IRS if you owe them money. It is a common mistake that filing an extension allows you to postpone tax payments as well. If you owe money to the IRS, then be sure to send in a payment when you file your extension. You must pay 90% of the amount you owe in taxes by April 15 or be subject to a late payment penalty.

Not withstanding that payment, you will likely be subject to interest on whatever is owed if not paid by April 15.E-filing no longer and option. One real disadvantage to filing for a tax extension is that it will prohibit you from being able to file electronically past the deadline. After April 15 has past, you will be required to send in your tax forms through regular “snail” mail. This may seem scary to those of us used to doing everything online, but is really not as intimidating as it sounds. IRS does not always notify you.
When you send in your return forms, the IRS will notify you that they have received them. However, the IRS will likely not notify you when they receive your extension. If you do file one, then it is a good idea to call the IRS and verify they received it. Also, for your benefit always make and keep a photocopy of any tax documents you send out.

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Delaying the inevitable.

Hey, you might be getting some stress relief in April, but the stress will rear its ugly head again sometime between now and October. So, you had better find some time to get prepared.

You really still need to pay!

There is a reason this is on here twice-people fail to pay-up when filing for an extension and it ends up costing them thousands of extra dollars in interest and penalties. Remember that no matter the reason you file for an extension, it does not extend your obligation to pay your taxes by April 18. If you do not know how much to pay, look at last year’s return for some guidance.

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Is It That Easy To File Online Yourself.

author2 — Wed, 12 Jan 2011 18:28:28 +0000

Is it really that easy to file your taxes online yourself?

Many online websites that offer you services do talk about how simple and easy it is. Many Americans do submit their tax returns electronically. That being said can it really be easy to use this method after many years you had gone to someone else and paid them to prepare your taxes for you? Or could it all depend on the type of taxes you are going to file online?

So let’s look into the process in how to submit your tax return electronically.Types of Tax Forms There is more than one type of tax form. There are the individual tax form for your average tax payer. This form is pretty basic and simple with some know how in basic mathematics figuring out gross and net incomes any average American could submit online themselves. Though it can get a bit more complex if you own a home and have children, but you are not alone as the majority of Americans are in this situation.

Many of your online tax providers have customer and support guidelines to help you through the filing process. The rest of your forms are Self Employed and Business tax payers, large mid-size Corporation tax payers. No-profit and charities forms, and lastly efile software developers. Every one of these can be filed online accordingly too. To fill out each form is different though so again the question is asked is it really that easy to do it yourself. It can be if you have a little known how. Dangers Electronic filing has become mandatory in some states. You have no choice BUT to use their programs.

The paper filing and mailing is nearly dead. It all depends on the service you use. Some companies may offer products to purchase and you may think you have to in order to do this and that is not the case. Also you need to be careful with the free offers. The IRS says it is only for those who have income of 50,000 or less. Also to file taxes online you are open to hackers and identify theft so check to make sure the provider has top secure line as providers have in their contracts they are not liable for anything if information gets stolen or lost.

The Process Actually yes it is super easy to field your taxes online. The online forms today are designed for novices and read like a question answer form. As stated before you do get taken step by step through the process and all that is really needed to know is how much you made for the year. Even the more complex forms are like this and still pretty easy. The whole process should take you about an hour or less depending on your tax form.

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6 Months More To File By Spending 5 Minutes Now.

Author1 — Wed, 12 Jan 2011 05:28:25 +0000

So here it is, tax season 2011.

With a matter of days remaining until the April 18 IRS income tax deadline, the stress level of Americans is on the rise. Prepare yourself for a lot angry drivers on the highways, impatient customers in the lines of local coffee shops and grocery stores, and friends who don’t quite treat you like the friends they were only weeks ago.

Looking for a way to cut down on the April tax time blues?

There’s a little known secret called an IRS tax extension (the technical term is an IRS Form 4868 Application for Automatic Extension of Time To File U.S. Individual Income Tax Return), and there is a company called FileLater ( FileLater.com ) who can help.
Of 130M United States federal income tax filers, about 10M filed for automated extensions last year, so you won’t be alone. And the IRS doesn’t ask (or care) why you file for an extension.

Almost every tax-paying American is automatically eligible to file an IRS tax extension, and it can be easy to do. In about 5 minutes, you can go to File Later’s website, answer a handful of relatively simple questions, and have your tax extension e-filed to the IRS for you. In a few of days, you’ll get an email with IRS confirmation that your new tax deadline is October 17 2011.

To file a tax extension online you’ll need to provide some basic personal information, and an estimate of your tax liability. Don’t have a clue if you owe or if you’ll be getting a refund? Don’t worry, the better tax extension filing services like FileLater will provide you with a simple calculator to make determining your tax liability easy.

If you’re in the minority of tax filers who will owe money to the IRS (rather than getting a refund) the IRS will still want their money by April 15 or you could be hit with a late payment penalty. Filing a tax extension will give you the extra 6 months to file your tax return, but it doesn’t give you extra time to pay the IRS.

That means you either have to mail a check postmarked by April 18 to the IRS or provide bank information online for an automatic withdrawal. If you expect to get a refund, then there’s nothing to consider.
The deadline for filing your income tax extension is April 18. A simple 5 minutes with File Later can give you an additional 6 months to file your taxes, and your stressed out CPA or tax professional will love you for it.

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IRS Extensions – Why Must We Pay Taxes

admin — Sun, 15 Mar 2009 09:59:00 +0000

You might be surprised to learn that filing a tax extension does NOT mean that you have an extra five or six months to actually pay your taxes.

This may be pretty confusing to the average taxpayer. Why would you bother with a tax extension if you still have to pay on time? (Which is to say, March 15 for business taxes and April 15 for personal income taxes).

Because you still might save money. Tax extensions give you extra time to prepare the most accurate and advantageous return possible–but the Feds still need the money you owe. If it turns out that you’re due some money back, you’ll get a refund. If you discover that you owe even more, you’ll have to pay it. But whatever your tax liability is on March or April 15, you have to pay it at that time.

What Happens if I Don’t?
If you don’t pay your income taxes by the standard deadline (March or April 15), you’ll have to pay a penalty that accrues each month your taxes stay unpaid. If you don’t pay by the time your extension is due (Sept. 15 for businesses and Oct. 15 for individuals) you’ll start accumulating interest fees as well.

The late payment penalty is typically 0.5% of your tax liability, calculated each month. For example, if you have $1,000 of unpaid taxes, you will accrue $5 every month, starting in March/April, until you pay.

Now, if you filed for a tax extension and you haven’t paid by that deadline, you will begin to accrue interest on your unpaid taxes. This interest is usually 5% of your outstanding balance per month. If your taxes are paid more than 60 days late, you’ll pay a minimum of $100 in interest.

Example: Let’s say you file a personal income tax extension, but it’s Nov. 15 and you still haven’t paid the $1,000 you owe in taxes. This means you now owe $1,030, which is your balance plus six months’ worth of late fees at $5/month. In addition, you’ll owe an additional 5% in interest, which is about $51 for November. So as of November 15, you’ll owe $1,081 instead of the original $1,000.

The lesson here is: File an extension, but pay your taxes on time!

Author: Chaney Rankin

Chaney Rankin writes for FileLater.com, an online tax extension service

Article Source: http://EzineArticles.com/?expert=Chaney_Rankin

to learn that filing a tax extension does NOT mean that you have an extra five or six months to actually pay your taxes.

The lesson here is: File an extension, but pay your taxes on time!

Author: Chaney Rankin

Chaney Rankin writes for FileLater.com, an online tax extension service

Article Source: http://EzineArticles.com/?expert=Chaney_Rankin

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