2018 - 2019 Personal Tax Extension Tips and Tidbits
If you find yourself falling behind when the tax due date comes around, you do have options. When it comes time to deal with the IRS for filing your federal income tax return, there are a few options at your convenience that can buy you a little more time.
Another way to do it is the old fashioned method, on paper and file it by snail mail with the United States Post Office.
However, with the old fashioned way, by mail, you never know if it might get lost in the mail or delayed in delivery which could put you past the filing deadline and subjected to penalties and interest charges.
Filing a personal tax extension when you're not ready to file your federal tax return helps you keep the IRS off your back. You need to avoid late payment penalties by sending in any taxes due with the extension form. Note: an extension grants you extra time to file your return but not extra time to pay any taxes owed.
Penalties can add up to 25% +- of the income taxes you owe. This substantial penalty can be avoided by taking a few minutes to file your tax extension along with your tax liability payment.
Personal Tax Extension Payment Options
With the income tax season winding down, the IRS allows all tax payers to request some extra time to file their return. You will owe interest on any amount that remains unpaid by the tax filing due date, plus you may owe penalties as well.
Our individual tax guide helps taxpayers that are ready to file their returns and those that have already filed and need to pay a tax bill have several payment options to choose from:
You can pay online by debit or credit card regardless of whether you e-file, paper file or are responding to a IRS bill or notice that you received in the mail.
You can file electronically and authorize an electronic funds withdrawal directly from your bank account via tax preparation software or a tax professional.
Pay by Mail - Pay by check or money order made payable to the “United States Treasury.” Make sure you include your name, address and Social Security number listed first on the tax form, as well as your daytime telephone number, tax year, and form number.
Complete and include Form 1040-V, Payment Voucher, when mailing your payment to the IRS, and put your Social Security Number on the check.
File your return on time and pay as much as you possibly can when you send in your return, then:
Request an Installment Agreement - Use the Online Payment Agreement Application at www.irs.gov or by file Form 9465, Installment Agreement Request with your return. Beware: the IRS charges a user fee to set up a payment agreement for you.
Extension of Time to Pay - Qualifying individuals may request an extension of time to pay and have late payment penalties waived as part of the IRS Fresh Start initiative. You may request this short additional time to pay your tax in full. To see if you qualify visit www.irs.gov and get Form 1127-A, Application for Extension of Time for Payment. This application must be filed by the tax due date.
Online Payment Agreement Application. Taxpayers who request this format and are granted it will get an additional 120 days to pay the taxes owed in full. This method will generally allow you to pay less in penalties and interest than if the debt were repaid through an installment agreement by payments over a greater period of time. There is no fee for this short extension of time to pay.
Wow, so you think, that’s so nice of the IRS to give you extra time to file your return. You can’t get your taxes done on time so they give you an extension.
How sweet right! Why would they do that? Well here’s a very important note to take seriously about the IRS personal tax extension they grant you. You get more time to submit your paperwork but you still have to pay on time!
Whatever you do, don’t be mislead into thinking your IRS tax extension gives you more time to pay. If you do, you will be charged interest on the amount you owe, plus possibly some wicked penalties you most definitely wont like.
2018 - 2019 Federal Tax Extension Tidbits To Know
Any taxpayer who needs to file a Personal Tax Extension Form 4868 can do so. The IRS has virtually no restriction when it comes to personal taxpayers filing extensions.
Filling out and filing a federal taxes extension form is not difficult or complicated in any way. However, there is one very important point to keep in mind.
It's not difficult to get a federal taxes extension online, but it is important to pay what you owe to avoid penalties and interest fees and charges.
Your tax extension does buy you more time to FILE your tax return, However, It does NOT give you more time to PAY any additional taxes that you may still owe. You must still pay your estimated taxes owed by the original due date for filing you tax return, usually April 15th unless it falls on a weekend.
Failure to pay your taxes owed will result in penalty and interest charges on any amount of unpaid taxes until the balance is paid in full.
What to do if you need to file a federal tax extension but live outside of the United States
You may be able to receive an extension of time for Filing your Federal Tax Return if you reside outside of the United States. By filing the IRS extension application Form 2350 for U.S. citizens and resident aliens abroad you can extend your deadline to October 15th. This form is applicable provided that you meet the requirements for special tax extension treatment. See IRS Publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad.