For the regular unsuspecting tax filer, the deadline for paying your taxes can arrive sooner than they think. It might appear as if the IRS has only just begun to accept tax returns. However, the reality is the last day to file them is April 18th – only a week away. As such, here are some ways to ask for a tax extension
What It Means To Get A Tax Extension
The first step to filing for a tax extension involves submitting Form 4868. You can do so either electronically or by paper, but you have to do so before the deadline on April 18th. Furthermore, you will still be required to pay at least a part of the estimated income tax via Direct Pay, a credit/debit card, or the EFTPS.
Some individuals are also granted automatic tax extensions. The category includes personnel from the military who are on duty in a zone of ongoing combat. It also includes people who reside in areas that the federal government has declared to be disaster zones. Finally, citizens of the United States that do not reside within the country have June 15th as their tax deadline day.
It should be noted that tax extensions do not mean getting more time to actually pay your taxes that may be owed. As per the IRS, a minimum of 90% of your estimated taxes must be paid before the original deadline to not get hit with late fees.
The penalty for late payments is usually 0.5% for every month that the outstanding amount is not paid after the deadline for filing has passed. It cannot exceed 25%. However, the IRS can issue a 5% penalty for late filing on the due amount for every full or partial month the tax return does not get paid.
