Filing a Tax Extension with the IRS can delay your tax return deadline by up to 6 months. Filing a tax extension can be very helpful to those with very complicated tax returns. The additional time to file the return can give taxpayers and tax preparers more time to prepare the return. This allows for better attention to be paid to the little details of each return so that you may get the most out of your credits or refunds.
IRS Form 7004: This form is used by businesses such as Multi-Member LLCs, C Corporations, S Corporations, Partnerships, Trusts, and Estates. This is commonly referred to as a form for Business Tax Extensions. This IRS Form gives a Tax Extension of 5 – 6 months and is normally due by March 15, 2014. Since the 15th falls on a Saturday this year, the deadline will be Monday, March 17, 2014.
IRS Form 4868: This IRS form is used for filing Individual or Personal Tax Extensions. This can be used to extend the tax deadline by 6 months for personal returns, 1099 Contractors, Sole Proprietorships, and Single-Member LLCs and is due by April 15, 2014.
IRS Form 8868: Non-Profit and Exempt Organizations can use the Form 8868 to apply for an automatic 3 month tax extension or a non-automatic additional 3 month extension and is due by May 15, 2014.
Filing a Tax Extension does not mean that taxes will not be due. This simply means that the tax return itself does not need to be filed until the later deadline. The IRS still expects full tax payment of any taxes due. If you are expecting any credits or refunds, you can use the extended time to organize the appropriate paperwork in order to maximize your refunds or credits.