When the regular tax filing deadline of April 18th rolls around each year, it can be stressful and overwhelming for many taxpayers. You may need extra time to find out how to file self-employment taxes or simply gather important documents.
Fortunately, you can get an extension of time to file if you miss the tax deadline. Getting a tax extension in 2023 is easy and straightforward and can provide you with extra time to get your taxes done correctly.
There are many tax extension myths but here is the tax extension information you really need to know.
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What is a Tax Extension?
A tax extension is a form filed with the IRS (Internal Revenue Service) that grants you more time to complete and submit your tax documents or to find out more information about how to file taxes.
Filing for an extension gives individuals and businesses an additional period of grace to get their finances in order before filing a state and federal tax return.
Tax Extensions for the 2022 and 2023 Tax Year
Tax extensions for the 2022 and 2023 tax years are available to everyone. For most, an IRS extension will give you an extra six months to file your taxes and set up a payment schedule to pay your tax bill in full before the deadline.
In certain special cases, the rules for tax extensions are a bit different. Military service members who are currently in a combat zone will have 180 days after they return to the U.S. to file their tax returns as well as to pay any tax owed.
Another special case would be if you are a U.S. citizen living abroad. You will be given an extra two months in order to file any taxes. In this case, you will still be required to pay interest on any taxes you owe that have not been paid by the due date.
For more information about extensions available, you can refer to the IRS website or speak to an accountant.
Are there any Penalties for Filing an IRS tax Extension?
The IRS generally does not charge a penalty for filing an extension, as long as you file the form before the April 18th deadline. However, if you don’t file in time there may be a late filing penalty or a late payment penalty added to your unpaid balance.
So, it’s important to make sure you file for the extension before the original due date.
The Late Filing Penalty
If you file your federal taxes late, the IRS will charge you a late payment penalty of 0.5% of your tax liability, which is compounded each month until the taxes are paid in full.
The Late Payment Penalty
The IRS can charge a late filing penalty of 5% for every month or part of a month that your owed taxes are past due.
These penalties and fees can add up quickly and can add to your burden so it’s important to make sure that you submit your return within the extension period and make your tax payment before the deadline.
How to File an Extension for Taxes
Knowing the proper way to file a tax extension is very important. Making sure you do it right can save you a lot of hassle in the future.
Let’s talk about the steps you will need to take to insure the job is done perfectly.
1. Gather the necessary information
You will need to make sure you have your basic information available including your social security number, full legal name, address, and date of birth, as well as a copy of last year’s tax returns to reference while you are filling out your extension form.
2. Complete IRS Form 4868
Fill out the appropriate form with all the necessary information. This can be found online or through a tax professional. Be sure to include the correct amount of estimated taxes you will owe for the coming year.
3. Submit Form 4868
Submit your completed extension requests before the filing deadline. These deadlines can differ for state taxes and federal taxes. You’ll want to be sure to check the deadline for your state before submitting.
4. Make a partial payment on taxes owed
If you owe money to the IRS, you must make at least a partial payment when requesting an extension in order to avoid interest and penalties. Make sure to make the payment by the required deadline.
5. File before the extension deadline
After your extension request has been approved the only thing left for you to do is to make sure you file your tax return before the extended deadline. This will prevent any penalties or fees that might take away from your hard-earned money.
Tax Extension Rules
The thought of filing an extension can be intimidating. Fortunately, there are some rules and regulations in place that you can use to make the process easier.
From military members stationed abroad to U.S. citizens living in other countries, here is an overview of general tax extension rules and what else you need to know.
The Military Aliens
Active duty military personnel that are stationed in a combat zone can automatically get an extension of time to file their taxes until at least 180 days after their service ends. They will also not be charged interest and penalties on any taxes due as long as they file their returns within that period.
U.S. citizens living abroad can also get a six-month extension to file their taxes. In order to do this, they must file a form called the “Application for Extension of Time to File U.S. Income Tax Return” by the filing deadline.
Individuals who are out of the country on the due date can get an automatic extension if they qualify. To do this, they must file Form 2350 with the IRS.
This form must be postmarked by the filing deadline in order to receive an extension.
Tax Extension Rejections
If your electronic tax return is rejected by the IRS, you will usually be given a chance to revise it and send it again. Rejections usually occur because of information that has been entered incorrectly. This is why it is important to take your time and make sure your information is all current. If the rejection occurs after the April 18th tax deadline, you will have an extra five days to make corrections and resubmit the return.
Tax Extension Tips
Taxes, in and of themselves, are often a daunting subject for many people. Filing for an extension on your taxes can be a great way to relieve some of the stress associated with the tax season.
Here are five tips that can help make the filing process easier and quicker:
- Consider Making An Installment Payment Plan: You may qualify for an installment plan if you’re unable to pay in full—just be aware that interest will accrue until the balance is paid off in full.
- Keep Up With Updates From The IRS: Stay updated on any changes made by the IRS regarding deadlines or extensions throughout the process. This is very important as it can save you from a lot of problems.
- Pay Attention To State Deadlines As Well: Don’t forget that state tax deadlines may be different from federal tax deadlines.
- Contact Tax Professionals for Assistance: If needed, contact a tax professional for help with preparing and filing your tax extension. They will be able to provide you with valuable advice and guidance.
- Use Electronic Filing Options: Electronic filing options, like Free File or e-file, allow taxpayers to quickly and easily submit their returns so they can meet deadlines more efficiently.
Your Tax Return: The Bottom Line
The bottom line is, a tax extension in 2023 is easy and straightforward. All you need to do is provide proof of extenuating circumstances, such as a natural disaster or military deployment, to the Internal Revenue Service (IRS).
Once approved, you will receive an extension that allows you to file your taxes at any time up to six months after the original deadline.
How long is a tax extension?
If you need more time to file your U.S. individual income tax return, you can request up to an extra six months. You have three options for requesting an automatic extension.
Remember that you must submit a request for an extension before the regular due date of your return to avoid any late filing penalties.
Can you file for a tax extension online?
Yes, you can file for a tax extension online. H&R Block, Turbo Tax, and many others have some of the best tax software available that will allow you to file for a tax extension.
Additionally, the IRS provides an online service called IRS Free File that allows taxpayers to file their tax returns electronically as well as to request an extension at no cost for federal tax filing.
Can I File an Extension and Not Pay Taxes?
Paying your taxes is a must. If you file for an extension you will still need to pay any taxes that you owe before the set deadline.
You can make an estimated payment if you are unsure what your exact taxes will be. Failure to pay the taxes could result in penalties and interest.
Can you get a tax extension beyond October 15?
Many people might ask the question “Can you get a tax extension beyond October 15?” The answer is simple.
No extensions normally are available after the extended deadline which is usually October 15. However, this year the deadline is October 16th.
If you are unable to file by October 16th, then you will have to seek help from the IRS. You can contact them for assistance and possible penalty relief if you are unable to file on time.