Essential Details to Keep in Mind about Filing IRS Taxes Late
Every year, the number of people who pay taxes increases. With this comes an increase in people who file their taxes late. Meeting the due dates or deadlines can be challenging, especially when there is a lot on your plate. However, missing the deadline to file taxes could cost you.
If you missed the tax deadline, depending on how you missed it, you could still pay your tax; however, you may be charged extra fines and fees.
Did you miss the April 18th, 2023, due date? Need more time to prepare and file your tax return? Then don't miss the opportunity to file for a tax extension. Fill out an IRS tax extension form - IRS Form 4868. This gives you an additional six months (October 17th, 2023) to file your taxes.
For so many taxpayers, getting an IRS tax extension is no problem, but it might seem quite daunting for someone new to it. They ask many questions, such as, what is tax extension form 4868? How much does it cost? How do you file it? Where can you get it? And how long does it last?
If you are in a late tax payment bind, be aware that help is available only if you ask for it. Read more to understand what this form is all about.
What is the IRS Form 4868?
The IRS tax extension form is officially known as Form 4868. This Form 4868 gives U.S taxpayers an automatic extension of 6 months to file Federal income tax returns. That means if your due date is on April 18th, the extension will give you until October 18th.
By filing the IRS tax extension form, you are avoiding having late-filing penalties on your record as long as you file the form by the extended due date. Failure to file by the end of the extended due date could mean that you face a late filing penalty of 5% per month of the amount due.
For instance, if you owe $3,500 and are four months late, the penalty for late filing would be $525. ($3,500 x 0.05) x 4 = $525.
By law, if the return is over 60 days late, the minimum penalty is either 100% of the unpaid tax or $435, whichever is less. This means the penalty will equal the amount of tax due if the amount owed is $435 or less. However, if the taxpayer owes over $435, the minimum penalty will be at least $435.
Therefore, if you are unable to file your tax by the filing due date, you can request an extension using the IRS tax extension form. All you need to do is obtain and submit the form by the tax filing due date.
Note: Filing the IRS tax extension form doesn't give taxpayers more time to pay their taxes if they owe. If the taxes aren't paid by the tax filing due date, penalties and interests will be charged, amassing from the original due date, even if the extension was filed. However, you will NOT be obligated for the expensive failure to file a penalty of 5% per month because you had filed an extension.
If you are self-employed, getting an extension is an added benefit. The extension gives you until the end of the due date to set up and fund a SEP (simplified employee pension) retirement plan.
Key Information to Keep in Mind about Filing Taxes Late
Here is some essential information to keep in mind about filing taxes late.
- If you want to obtain a tax extension, you need to plan for it in advance. This is because once the April 18th filing due date passes, filing for an extension will be impossible.
- Filing an IRS tax extension is easier than you think. You can apply for the extension through the IRS e-file program or other online services like ours. You could also mail in a paper copy of the form.
- There is nothing worse than having everything ready to be filed, only to discover you miscalculated and you owe more than you thought, delaying the tax return. Therefore, getting an online company that is an expert at filing your IRS tax extension form can help guide you on the best way to file the form as well as how and when to file it on time.
- Your extension request must be filed no later than the regular due date of your tax return.
- Filing and sending your tax extension form by April 18th may help you avoid having a late filing penalty of 5% of your unpaid balance, capped at 25%. However, it won't prevent the late monthly fee of 0.5%, limited to 25% of taxes owned.
- Requesting an extension of time does not mean an extension to pay your taxes. If you believe you would own money, estimate the amount and pay it with the IRS tax estimation form 4868.
How Long Does a Tax Extension Last?
When you fill out the IRS tax extension form, you get additional six months to pay in your income tax return. If you filed for a tax extension by April 18th, 2023, it extends your filing due date to October 16th, 2023.
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Note: Form 4868 is for those applying for tax extensions for Federal tax returns. If you require an extension form for your state's tax return, you have to contact your state tax authority to know if you have to submit an additional extension form.
The day has come. Every day you delay getting your IRS tax extension form, you could be amassing fines (if you owe and don't pay your tax). Getting started now is the best option. Let an expert file your taxes extension for you, start to finish, with IrsExtension.online.
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