Tax Extension
Form 4868 F.A.Q.
Who should file
an Income tax extension?
Submit
a tax filing extension if you need additional time to
prepare your income tax return. Filing form 4868 online avoids IRS's 5%-per-month late filing penalty and is
good for six months (until October 15th).
When are
Income tax extensions due?
Form
4868 online filing deadline is Midnight on April 15. Income tax extensions will continue to be
processed and transmitted to the IRS until April 20th, but to
guarantee your tax filing extension request is accepted, you should file
prior to April 15th.
Must I have a valid reason to file
an Income tax extension online?
No. The IRS will grant all taxpayers a
tax filing extension if
requested by the deadline.
How and when will I know that my
Online tax extension has been processed?
When you finish entering your information, you
will be presented with a confirmation page showing that we have
received it. From here, you can print a copy of
your tax extension. We will also send you an e-mail when the IRS acknowledges
your extension request. This e-mail will usually arrive within
24 hours of your
submission.
How and when will I know my
online tax extension has
been accepted?
Once we process your
tax extension, we e-file it with the IRS. It usually takes 24 hours
for the IRS to accept or reject your extension request. In either case, we will notify you by e-mail. If
your extension is accepted, you will be provided with a DCN#,
which is the tracking # the IRS provides to verify receipt of your
tax extension.
If your IRS extension is rejected, we will provide you with the
reason for the rejection and instructions on resubmitting.
Rejections usually occur because the name and Social
Security Number on your extension request do not match your most
recent Social Security Card. You can correct and
resubmit with no additional charge until accepted.
Does a Tax
filing extension give me additional time to
pay taxes?
No. You should estimate your tax liability as best you can
and pay any balance owed with your extension to avoid future
penalties and interest. The IRS penalty rate is about 0.5% per
month and the interest rate is currently 9% per year.
Combined, penalties and interest are about 15% per year. File
your extension by April 15th to avoid the 5%-per-month failure-to-file
penalty and pay any balance owed as soon as you can.
Must I file a state
tax extension as well?
If you owe state income tax, then an extension
form must be filed with your state. Some states simply require
a copy
of the federal tax extension form, while other states require a separate extension form. Check
your
State's Revenue Department to determine what is required by
them.
|
