What it means to extend your tax return?

Important Things to Consider Regarding a Tax Return Extension

When approaching the April 15th tax due date, you might be considering the extension of your individual tax return. Simply submit Form 4668 electronically or on paper with the IRS by March 15 for your business return or by April 15th for your individual return. Then, the new due dates will become September 15th (for businesses) and October 15th (for individuals).

That said, many people are under the impression that if they owe on their tax return, they can delay paying the taxes by filing for an extension. This is not the case, and if you fail to pay any amount owed by April 15th, even if you extend your return, you may be subjecting yourself to expensive penalties and interest imposed by the IRS.

Reminder: If you owe, all taxes are due by 4/15 even if you’ve completed the extension documentation.

Here are the most important things to remember about a tax return extension:

1) An extension is an extension of time to prepare and file the tax return, and it is not an extension of time to pay your taxes.

2) You are required to estimate and pay any taxes owed by your regular deadline. If you are unsure of how much you will owe, over-estimate and shoot high. If you pay too much, you will be refunded this amount.

3) You can send a payment for your taxes with the paper Form 4868, or you can make a payment electronically (with the accompanying Form 4868) through the IRS website. (Click here for instructions on making estimated payments.)

4) Penalties and interest begin accruing on the amount of taxes not paid by April 15th.

5) When you file your tax return and are due a refund, you have 3 years to claim this refund. However, if you file after the April 15th deadline, they might pay you interest on the refund amount (because they have kept your money for a longer duration of time).

**Our Storen Financial Policy: We will file an automatic extension for all previous years’ clients by the tax deadline. If you are new to Storen and you would like help filing an extension, give us a call and we will file an electronic extension for you as long as we have the necessary documentation to do so.

Want to more details about filing an extension from the IRS website? Click here to learn more.

Have questions? Click here to contact us with any questions you have. Or Click here to learn more about our tax planning and preparations services.