4 Points For Filing A Personal Tax Extension Form 4868
Isn’t it great to have second chances?
Especially during tax season, when that deadline sneaks up on you and you’re frantically gathering the information needed to file, a second chance with an extension is like a cool, crisp oasis in the middle of a scorching desert.
But time is always a factor. What difference will filing an extra form make? Late is late, right?
There’s no need to add on the extra pressure or heat, in this case. Here are four reasons why the extra breathing room is actually worth your while:
1) More time to file – Well, of course. Keep in mind though that Personal Tax Extension Form 4868 only extends your time needed to file, not your time needed to pay your taxes. Your taxes are still required to be paid by the initial date of April 15, but penalties vary greatly between not filing on time and not paying on time. It generally breaks down like this…
Failure to File on Time: A charge of 5% of the unpaid taxes for each month or part of month your return is late; this can go up to 25% of your unpaid tax. If you’re more than two months late, the minimum penalty can be $135 or 100% of your unpaid tax, whichever is smaller.
Failure to Pay on Time: If you file by the deadline, but can’t pay all your tax on time, the charge is only 0.5% of the unpaid tax each month late.
Even if you can’t pay on time, you’re left with the lesser of two penalties by filing an extension.
2) Have the necessary information already in order – The most common reason to file an extension is because you haven’t received all your documents such as a K-1, W-2, or 1099. You may have to still have gather financial information in order to successfully prepare a return. In this case, an extension will definitely be your buddy.
What you’ll need to simply file an extension is just your name, address, and social security number. If you’re married and filing jointly, you’ll need the same information for your spouse.
3) Secure your retirement plan – With certain types of retirement plans, such as Simplified Employee Pension, filing a Personal Tax Extension Form 4868 can also extend the time in which employer contributions can be done for the prior year. Self-employed taxpayers can set up the pension plan for the previous year and have up to the extended tax return deadline to make contributions. Talk more with your local financial planner for details.
4) No explanation needed – There could be a million and one reasons as to why you need to file an extension. The funny thing is the IRS really doesn’t care, but it’s not to hurt anyone feelings. Taking the proper steps to file an extension and properly estimate your current tax liability by the initial deadline of your return shows enough compliance on your part. We all know that stuff or life happens.
So, how’s that oasis working out for you? Better than forcing yourself through the rest of the desert. Though you still have to make it, you can now be more prepared. Remember, submitting an incomplete or an inaccurate tax return is just the same as filing late.
An extension works in your best interest. ExpressExtension can quickly and easily e-file your Personal Tax Extension Form 4868. For even more convenience, download our FREE Express 4868 App for iOS and Android devices. And, for further assistance with e-filing, contact our live, expert professionals by phone at (803) 514-5155 (Monday – Friday, 9am – 6pm EST), email at [email protected], or live chat at www.expressextension.com.
