Millions of people file tax return extensions every year. The tax filing deadlines can rush up on your quickly. Fortunately, filing an extension isn't particularly difficult. For individuals, there are two available extensions.
Automatic Extension
What do you do if April 15th is approaching and you simply can't get your taxes done? The IRS allows you to file a request for a four-month extension to file your tax returns. Simply file form 4868 and you will automatically be given until August 15th to get your return in.
Second Extension
What do you do if August 15th is quickly approaching and you still can't get your returns together? You can file an additional request for an extension to file your tax returns. Unfortunately, the IRS isn't going to automatically grant your request. Instead, you have to show the following:
1. The reason for requesting the extension,
2. The particular tax return for which the extension of time to file is desired,
3. The tax year to which the extension applies,
4. The length of time needed for the extension, and
5. Whether another extension of time to file has already been granted for this tax year.
If you can provide credible information, the IRS will grant you an additional extension for two months. To request the extension, you must file form 2688.
Failing To File
Failing to file a tax return or application for extension is a bad move. Penalties can be as high as 5% for each month your return is late. The penalty does max out at 25% of the tax due, but your risk of an audit or having your return red flagged increases dramatically. Filing a tax return extension is fairly simple, so you should never have this problem.
Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review. Read additional tax articles at http://www.businesstaxrecovery.com/articles for more information.
Does this scene sound familiar? It's April 7. You haven't... Read More
Whether helping the kids with a down payment on their... Read More
One can never underestimate the enthusiasm that politicians have for... Read More
April 15 - The most dreaded day of the year... Read More
Newlyweds and the recently divorced should make sure that names... Read More
Estate taxes. It's not enough to simply know they exist,... Read More
Someone once remarked, "Next to being shot at and missed,... Read More
If you are environmentally conscious and purchase a 2005 Ford... Read More
As a small business owner, it's wise to familiarize yourself... Read More
You're at your office, or home, and the doorbell rings... Read More
Managing a business small, medium or big requires you to... Read More
As a gentleman was leaving my class recently, he wanted... Read More
Employers often ask employees to designate the amount of tax... Read More
Running a home based business reaps many wonderful tax deductions... Read More
The 100 year old investment-banking firm of... Read More
With gas prices at an all time high before Hurricane... Read More
Just image, you are a small manufacturing company, business has... Read More
Many Americans believe that an IRS debt is a debt... Read More
If your business has employees, you must pay employment taxes.... Read More
So, you were pleasantly surprised to learn that you are... Read More
Have you been thinking about incorporating your small business or... Read More
1812The first attempt to impose an income tax on America... Read More
Assume a buyer in Pakistan downloads software from the Internet... Read More
Strategic planning throughout the year results in a minimal tax... Read More
Taxpayers have two easy and convenient options for getting copies... Read More
QUESTION: I have been contacted by my local city... Read More
We need real tax reform and we need it now.... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Adding Your First Additional Stream of IncomeMost new wealth builders... Read More
If you have recently started an Internet or home business,... Read More
For many business owners the answer to this quandary is... Read More
The powers of Congress, and the limitations set upon those... Read More
Deducting Your Auto ExpensesAuto deductions are a very complex topic.... Read More
If you have recently started an Internet or home business,... Read More
As tax time approaches, many home-based business owners begin completing... Read More
As everyone in the U.S. knows, we have just passed... Read More
If you are environmentally conscious and purchase a 2005 Ford... Read More
The United States is a nation of entrepreneurs. There are... Read More
In trying to comply with tax laws for your e-business,... Read More
"Settle for Pennies on the Dollar! IRS debts settled for... Read More
All tax authorities to e-commerce transactions should investigate the record... Read More
Taxpayers have two easy and convenient options for getting copies... Read More
As we enter mid-March, taxpayers begin to become very interested... Read More
The means and types of businesses have transformed with advent... Read More
The U.S. Department of Agriculture estimates that it costs nearly... Read More
If your identity is stolen, your finances can quickly become... Read More
If your like many, you don't always understand what people... Read More
On June 3, 2005, the IRS released guidance on charitable... Read More
Over 50% of marriages end in divorce in the United... Read More
Marketing is a necessary expense in running practically any business... Read More
One of the most important, but least understood or appreciated... Read More
Have you been thinking about incorporating your small business or... Read More
An early distribution from an Individual Retirement Arrangement (IRA) or... Read More
Does your incorporated business pay alternative minimum tax ["AMT]? If... Read More
The end of tax filing extensions is quickly approaching. What... Read More
Should I take wages or dividends from my privately owned... Read More
Following is a reproduction of the IRS's rules and requirements... Read More
As your business grows, you are going to need help.... Read More
When buying a business, how the "purchase price" is made... Read More
The Sarbanes-Oxley Act, also called the Public Company Accounting Reform... Read More
With gas prices at an all time high before Hurricane... Read More
Each year, the IRS lists various scams taxpayers get caught... Read More
Small Businesses Filing Amended Federal Tax Returns to... Read More
If you paid someone to care for a child so... Read More
Most people look forward to getting their tax return, but... Read More
As a gentleman was leaving my class recently, he wanted... Read More
Tax |