Valid Reasons For Filing a Tax Extension

Tax deadlines are the same day every year unless pushed back a day or two for a holiday, but for some reason, the deadlines still sneak up on us. What do you do when taxes seem to come out of nowhere? Do you start frantically digging through piles of paperwork and lose sleep to get everything prepared in time? We hope not, because you can file an extension.

An Extension

If you need a little more time to prepare for your taxes, simply file an extension. Depending on the form you can get between 30 extra days to 6 months to file your taxes. However, it important to know if your extension is automatic or not.

Some forms like the 8868, are automatic, meaning you don’t have to provide a reason for filing the extension. As long as you complete and correctly file the proper paperwork in time then your extension will be automatically approved.

Other forms like the 8809 do not have automatic extensions. This means that you have to provide a valid reason for needed a tax extension that will either be approved or disapproved by the IRS.

If your extension is approved by the IRS you won’t hear from them. However, if your extension isn’t approved you’ll be notified via mail. A letter will be sent to you or the entity that filed the extension.

Also, even when the IRS approves extensions, automatically or not, they reserve the right to terminate the extension at any time. If the IRS chooses to terminate your extension you’ll be notified via mail and the extension notice will be mailed out at least 10 days prior to the termination date.

REMEMBER: Extensions don’t give you extended time to pay your taxes. They only extend the amount of time you have to file them.

Valid Reasons For Extensions

Now that you know more or less what an extension is, let’s go over a few reasons the IRS deems valid for them.

You might have missing or incorrect information. During tax time papers circulate around the office and become mixed in various piles. You may be waiting to get your W2 from your employer, or you may be waiting for your employees so they can tell you if their information on them is correct or not.

Oftentimes financial institutions send out 1099’s to their clients to report interest or dividends, and a majority of these forms get returned either late, or inaccurate information. So, if you finding yourself waiting on information, missing information, or you already know that corrections will be made then file an extension.

You schedule might get busy and something may have bad timing. For example, life doesn’t stop for taxes, even if the IRS thinks it does. That’s why if you find yourself busy with the birth of a child, loss of a loved one, buying or selling a house, with a sudden illness, busy during the peak season for your sales, or busy putting a lot of time in your new business trying to grow it then you’ve got yourself a valid reason for a tax extension.

Maybe you’ve found yourself out of time for the tax season. A lot of people travel for business and a few people like to enjoy early spring vacations around April 15th when tax returns are due. The IRS gets it. While you’re away you might not have access to important documents you need to file and you might not want to e-file. Simply file for an extension. 

If You Can’t Pay…

Unfortunately, being unable to pay for your taxes isn’t a valid reason for an extension. Payments or due regardless if you have an extension or not by the IRS deadline. However, if you can’t afford your taxes you can get an installment plan.

Installment plans are plans agreed upon by the IRS to let you pay for taxes in monthly installments until they’re paid off. However, you’ll still face penalties for paying late, and there will be interest on the amount you owe.

It’s actually oftentimes much cheaper and better to simply pay your taxes with a credit card before they’re due.

If you find yourself in a situation where you absolutely need an installment plan the IRS is flexible and will work with you on the lowest rate you can afford, even though it’s best to pay the amount you owe as quickly as possible. Also, you’ll receive less interest if you can pay off your installment plan within 120 days. 

ExpressExtensions Is Here To Help

We will help you quickly e-file for tax extensions online. Our system provides step by step instructions to help you easily fill out the extension form that you need, and we will notify you via email if the IRS rejects your form.

Also, our outstanding support team is always here to answer any questions that you may have. Contact us via phone Monday – Friday 9 AM to 6 PM EST at 803.514.5155. We also offer 24/7 email support at [email protected]

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