The only thing harder to escape than the sweltering summer weather, is your tax deadline. Back in April when the IRS extended the deadline for Tax Day, it seemed like there was SO much additional time to file and make tax payments. Well, the deadline has finally arrived, and July 15, 2020 is here.
You may be wondering how you will possibly make the deadline for filing your Form 1040, if so, you have options. It is not too late to file Form 4868 to extend the deadline to file your personal income tax return. Here is what you need to know to successfully file your extension and avoid any penalties from the IRS.
What is Form 4868?
The Form 4868 is the IRS Tax Extension was created specifically for individual income tax returns. This includes the following forms:
As these forms are generally filed electronically, you should plan to file your extension Form 4868 for the best results. The IRS is currently struggling to keep up with the processing of paper forms due to COVID-19. Therefore, they are strongly recommending that tax forms be filed electronically.
The Form 4868 is an automatic extension, the IRS doesn’t require any explanation or justification from filers seeking additional time to file their tax return. As long as you complete your extension correctly with accurate information, the IRS will more than likely approve your extension.
Who can file Form 4868?
The short answer to this question is that any individual that is required to file personal income tax returns can file an extension Form 4868. Here are a few examples of individuals who may benefit from filing a Form 4868.
Independent Contractors who are self-employed must record their income using this form. Sole proprietors and single member LLC’s will need to include their business information on their Form 1040 as well.
With COVID-19 and the many disruptions that it’s caused, you may find that you need additional time to compile the information that you need to file your personal income tax return. If so, you can consider extending your deadline to October 15, 2020 with Form 4868.
What are the penalties associated with Form 1040?
If you fail to file your Form 1040, there will be monetary penalties. You could end up owing the IRS up to 25% of your original tax payment. They will charge you 5% of your payment every month that you fail to file your tax return.
The easiest way to avoid penalties is to file an extension Form 4868 and make your estimated tax payment. With ExpressExtension we make it easy and secure for you to do both!
What information is needed to file Form 4868?
The Form 4868 is a fairly straightforward form, which is great news for last minute filers. This form has 2 parts. This is the information that you will need to have handy and provide in each section of the form:
Indicate your legal name and address. Are you filing jointly? You will need to provide your spouse’s legal name as well.
Your SSN and potentially your spouse’s.
Indicate the tax return you are hoping to extend. For example, Form 1040 or Form 1040-NR.
Your estimated tax payment (you can round up to the whole dollar).
Your estimated tax liability for the tax year ended.
Indicate if you are making a tax payment with your extension.
Indicate if you are out of the country.
File in minutes with ExpressExtension!
With ExpressExtension, you can count on a fast and easy filing process. Our software will walk you through the process step-by-step. Need to make an estimated tax payment? You can do so easily and securely do so using Electronic Funds Withdrawal (EFW) or Electronic Federal Tax Payment System.
What if your Form 4868 is rejected by the IRS? ExpressExtension won’t leave you hanging, we will provide you with an error code to indicate your filing error. Then we will allow you to retransmit your form at no additional charge. There you have it, there is a last minute solution for your personal income taxes! You can file your extension today with ExpressExtension!