Everything You Need To Know About Tax Return Extension In 2023





Virginia Tax Extension Deadline 2023 Finance News
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What Is a Tax Return Extension?

A tax return extension is a request to the Internal Revenue Service (IRS) to delay filing your tax return. While the IRS grants a 6-month extension, that doesn’t mean you don’t have to make your payment by the April 15th due date. In 2023, that due date is April 18th, as April 15th is a Saturday. When you request an extension, you must estimate the total taxes due and submit payment by the due date. This will help avoid interest and penalties. If you don’t make any payments, the IRS will refer your case to a collections agent. They may even take more drastic measures, such as garnishing your wages or freezing your bank account.

Who Qualifies for a Tax Return Extension?

Most taxpayers in the United States qualify for a tax return extension. It doesn’t matter if you’re filing your taxes as an individual, a corporation, or an LLC. Even if you’re filing taxes for a trust or estate, you can still request a filing extension. You can also request an extension if you’re filing taxes in multiple states. Taxpayers who owe money and need more time to come up with the payment can also apply for an extension.

How Do I File an Extension?

In 2023, the IRS is allowing taxpayers to file an extension online. All you have to do is fill out Form 4868 and submit it through the IRS website. You can also mail the form to the address listed on the form. You should make sure to send the form before the April 18th due date. If you’re submitting your extension request via mail, you should allow at least 5-7 days for the form to reach the IRS.

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What Information Do I Need to Submit?

When you’re submitting Form 4868, you’ll need to provide your name, address, and Social Security number (or Individual Taxpayer Identification Number). You’ll also need to provide an estimate of your total tax liability for the year and the amount of any payments you’ve already made. If you’re sending a payment along with the form, you’ll need to include your payment details. You can make a payment via check, electronic funds transfer, or credit card.

When Should I Expect My Tax Return?

If the IRS approves your extension request, you’ll have an additional 6 months to file your tax return. That means you’ll need to submit your tax return by October 15th, 2023. If you don’t submit your tax return by that date, the IRS may charge you additional penalties and interest. Make sure to keep track of the due date and take the necessary steps to avoid any penalties.

Do I Have to Make Payments During the Extension Period?

Yes, you’ll need to make your payments during the extension period. You can make payments via check, electronic funds transfer, or credit card. The amount of the payment will depend on your estimated tax liability. If you don’t make your payment, the IRS may refer your case to a collections agent. They may even take more drastic measures, such as garnishing your wages or freezing your bank account.

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Can I File an Extension in Multiple States?

Yes, the IRS allows taxpayers to file an extension in multiple states. You’ll need to fill out a separate Form 4868 for each state in which you’re filing. The process is the same as filing a federal extension. You’ll need to provide your name, address, and Social Security number (or Individual Taxpayer Identification Number). You’ll also need to provide an estimate of your total tax liability for each state and the amount of any payments you’ve already made.

What Happens If I Don’t File an Extension?

If you don’t file an extension, the IRS may charge you additional penalties and interest. The amount of the penalty will depend on the amount of taxes owed and the length of the delay. In some cases, the penalty can be as high as 25% of the total tax liability. The IRS may also refer your case to a collections agent, who may take more drastic measures, such as garnishing your wages or freezing your bank account.

Conclusion

Tax return extension is a great way to give yourself more time to file your taxes. However, you should remember that an extension is not a way to avoid making your payments. You must make an estimate of your taxes due and submit your payment by the due date. If you don’t make your payment, the IRS may refer your case to a collections agent. Make sure to pay attention to the due date and take the necessary steps to avoid any penalties.

Originally posted 2023-01-21 23:38:56.

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