Filing tax returns is a dreaded chore for many Americans. Some individuals get this done as soon as they receive all of their tax forms; others wait until the last minute. Anyone who wishes to postpone filing a tax return beyond the original tax return deadline has the option of extending.
In recent years, e-file, or electronic filing, has become an increasingly popular way to send in a federal income tax extension. In this article, learn about extending Form 1040 with the IRS and a myth about delaying payment of taxes.
Extend Federal Income Taxes – Free Online Tax Filing at irs.gov
A tax return can be extended online using tax software with e-filing capabilities or by having a tax professional file it on the taxpayer's behalf. According to an IRS news release (IR-2009-036), anyone can now e-file an extension for free from home.
Most United States taxpayers (filers of Form 1040, 1040A, and 1040EZ) can use either Traditional IRS Free File or IRS Free File Fillable Forms to file tax extensions online. Both types of free online tax filing options are discussed on the IRS website, irs.gov.
IRS E-File – File Tax Return Extension Online by April 15th Deadline
To be valid, a tax return extension must be filed by the original due date of the tax return, which is April 15th for most U.S. individuals. Some taxpayers mistakenly assume that filing a tax extension grants them additional time to pay federal taxes. The truth is that a properly filed extension moves the deadline to file Form 1040 (or equivalent tax form). Any tax owed is still due on the original tax return due date.
Even if the exact tax hasn’t been calculated, the taxpayer should pay the estimated amount due with the tax extension. If tax is due but remains unpaid after the April 15th deadline, the taxpayer may be subject to interest and penalties.
How to Extend Tax Returns, Request Federal Income Tax Extensions
The article How to Extend Federal Income Tax Returns covered the three ways to extend an individual tax return – by mail (using Form 4868), by phone (to pay with a credit card), or online (paying by credit card or e-filing an extension). That article covered the mail and credit card options in detail.
Don’t Want to E-File Taxes? Extend Form 1040 Using Form 4868
No explanation is required in order to receive a tax extension. Some individuals mistakenly assume they must have a good excuse; none is needed. Taxpayers should keep in mind that a paper form is available for filing tax extensions – Form 4868.
Anyone who expects an income tax refund may wish to file a tax extension online or by paper sooner rather than later. This is because the IRS cannot refund taxes without knowing how much a taxpayer is owed. Taxpayers can estimate their tax refunds online through the TurboTax or H&R Block websites. Learn more about these free online estimators in the article Free Tax Refund Calculators Online.
Resource:
IRS Newswire Issue IR-2009-036
TAX101
Lena Gott - Lena Gott is a Certified Public Accountant who gives practical financial advice to her readers.
Comments