Great question!
Filing a tax extension refers to a process by which taxpayers can request additional time beyond the original tax filing deadline to submit their tax returns to the Internal Revenue Service (IRS). In the United States, the standard tax filing deadline for most individuals is typically April 15th each year, unless that date falls on a weekend or holiday, in which case the deadline may be extended. This year, the deadline is Monday, April 15.
When you request a tax extension, you are effectively asking for extra time to prepare and file your tax return without facing penalties for filing late. Here’s how the process generally works:
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Requesting the Extension:
You can request an extension by filing Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) with the IRS. This form can typically be filed electronically or by mail. Some states also offer automatic extensions if a federal extension is requested.
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Deadline for Extension:
The deadline for filing Form 4868 is usually the same as the regular tax filing deadline, which is April 15th for most individuals in the United States. By submitting Form 4868 by this date, you can receive an automatic extension of time to file their tax return.
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Extension Period:
Typically, the extension grants an additional six months to file the tax return. Therefore, for U.S. federal taxes, if Form 4868 is filed by April 15th, the new deadline for filing the tax return would be October 15th.
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Payment of Taxes:
It’s important to note that while a tax extension grants additional time to file the tax return, it does not extend the deadline for paying any taxes owed. You are still required to estimate and pay your taxes by the original tax filing deadline to avoid penalties and interest charges. Failure to pay taxes owed by the original deadline may result in penalties and interest, even if an extension to file the return is granted.
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Filing the Tax Return:
Once the tax extension is granted, you have until the extended deadline to prepare and file their tax return. It’s essential to ensure that the tax return is submitted by the extended deadline to avoid late-filing penalties.
Filing a tax extension can provide individuals with additional time to gather necessary documents, review their financial situation, and accurately complete their tax return, ultimately reducing the risk of errors and ensuring compliance with tax laws.
If you need help filing an extension, give us a call at 417.380.5000 or email transportation@abacus.cpa.
