IRS Tax Extension and other Income Tax Return Help » IRS extension Filing Deadline

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.

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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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Efile Tax Return – Three Benefits

admin — Thu, 15 Jan 2009 08:12:00 +0000

There are three major benefits to filing your income tax online, and you should really look at them before going to your accountant and shelling out a large amount of money on your income tax return.

The software that is available nowadays allows you to work with it in a fast and easy manner. This software is something that will change the idea of taxes from a hardship to a simple task. You will find that it is very fast using an efile tax return, and you will be able to do it in your own home while at the same time saving a lot of money. This really is a very simple system.

If you have a complicated tax return, and you feel that you must see an accountant then this may be the best choice for you. Go ahead and see your accountant.

If you have a simple tax return to prepare, however, you should consider going out and buying one of the many software packages that will allow you to prepare your tax return online and submit an efile tax return.

This software will keep you organized in your thoughts as you are preparing your return, and they are updated to include all of the up to date state and federal tax laws. They will guide you through the return in a simple step-by-step procedure. This is what most people need when it comes to filing a tax return because the forms are such a burden to fill out. Step-by-step instructions take all of the guesswork out of the forms, and ensure that you get it done right the first time.

Doing your tax return in your own home means that you can do it at your own speed in your own time. You do not have to wait for an appointment with an accountant, and you do not have to wait in line at a post office to mail out your return. You are able to print off a copy of your efile tax return for your own records with your own computer printer. You don’t have to waste any gas or get caught in any traffic lineups. You will save gas costs and accounting costs by doing your efile tax return in the comfort of your own home. More and more people are choosing this option to efile their tax returns.

The software available to help you with your efile tax return is available online for your convenience. You can try to file your taxes online without the software, but if you are one that becomes confused easily with the whole tax system, it may be worth your money to invest in one. It will help you avoid any possible frustrations that you may get by doing an efile on your own. Taxes can be simplified, and you can do it yourself, or with the help of software. Any simple tax return does not really need the help of an accountant, and you can save money by doing it yourself. You can use the extra money to get something special for yourself, and you deserve it.

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