What You Need To Know About The Federal Tax Extension In 2023





Federal tax deadline extended from April 15 to October 16 this year
Federal tax deadline extended from April 15 to October 16 this year from everythingfallbrook.org

What Is a Federal Tax Extension?

A federal tax extension is an extension of time given by the Internal Revenue Service (IRS) to taxpayers who need additional time to file their taxes. They provide an additional six months for filing taxes, giving taxpayers until October 15 to submit their tax forms. However, it’s important to keep in mind that an extension of time to file taxes does not mean an extension of time to pay taxes. Any taxes owed must still be paid by the April 15 deadline to avoid penalties and interest.

Who Is Eligible for an Extension?

Generally, any individual, estate, trust, or corporation can apply for an extension of time to file. However, there are some special rules that apply to C corporations and certain other entities. Most taxpayers can get an automatic extension of time to file by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This extension is available to all taxpayers, regardless of income or filing status.

How to Apply for an Extension

Applying for an extension is relatively simple. The main way to apply for an extension is to file Form 4868, which you can do electronically or by mail. Be sure to attach a copy of the form to your tax return. You should also include an estimate of your tax liability for the year. This is important, because although you are granted an extension to file your taxes, you are still responsible for paying any taxes you owe by the April 15 deadline.

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What Is the Deadline to File an Extension?

The deadline to file an extension is the same as the deadline for filing your taxes — April 15 — unless that date falls on a weekend or a holiday, in which case the deadline is the next business day. You should be aware that while the deadline to file an extension is the same as the deadline for filing taxes, the deadline to pay taxes is still April 15.

What Are the Benefits of Filing an Extension?

One of the biggest benefits of filing an extension is that it gives you additional time to gather all of the necessary documents and information for filing your tax return. This can be especially helpful if you’re waiting for certain documents, such as a K-1 form. It also eliminates the need for filing an amended return if additional information is discovered after the April 15 deadline.

What Are the Disadvantages of Filing an Extension?

The main disadvantage of filing an extension is that it does not provide additional time to pay taxes. Any taxes due must still be paid by the April 15 deadline in order to avoid penalties and interest. Additionally, filing an extension does not guarantee that the IRS will not audit your return. The IRS can still audit returns filed after the April 15 deadline, and in some cases, the risk of being audited may be higher if you file an extension.

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What to Do If You Can’t Pay the Amount You Owe

If you owe taxes and can’t pay the full amount by the April 15 deadline, you should still file your taxes and pay as much as you can. This will help you avoid the late payment penalty, which is 5% of the unpaid amount per month. You can also apply for an installment agreement with the IRS and pay your taxes in installments. This can be done by filing Form 9465, Installment Agreement Request. You may also be eligible for an offer in compromise, which is an agreement with the IRS that allows you to settle your tax debt for less than what you owe.

How Do I File My Tax Return When I’ve Filed an Extension?

Once you’ve filed an extension, you can file your tax return at any time before the October 15 deadline. You can file your return electronically or by mail. If you’re filing electronically, you must use tax software approved by the IRS. You can also use the IRS e-file system. Be sure to attach a copy of your extension to your tax return.

Conclusion

A federal tax extension can provide you with additional time to file your taxes, but it does not provide additional time to pay taxes. If you owe taxes and can’t pay the full amount by the April 15 deadline, you should still file your taxes and pay as much as you can to avoid penalties and interest. Additionally, you can apply for an installment agreement or an offer in compromise to help you settle your tax debt.

Originally posted 2022-12-13 04:27:51.

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