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. If you choose to file your own extension, simply submit Form 4868 electronically 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).
**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.
Reminder: If you owe, all tax payments are due by 4/15 even if you’ve completed the extension documentation.
Filing a tax extension gives you more time to file your return, but it does not give you more time to pay. If you owe taxes, you must still pay them by April 15th. If you miss this deadline, the IRS can charge you expensive interest and penalties—even if your extension was approved.
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 prior to April 15th. If you are unsure of how much you will owe, visit the IRS website here. If you pay too much, you will be refunded this amount.
3) You can make a payment electronically through the IRS website by selecting the extension option.
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).
Why would you want to file a tax extension? Click here to learn more about the benefits.
Want to more details about filing an extension from the IRS website? Click here to learn more. Or want the steps on how to pay your taxes for an extension? 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.
Blog by Jonah Edwards – Tax Advisor
Learn more about Jonah and the rest of the Storen Financial team here.