Are you prepared to file your taxes by April 15th? Do you have the funds to cover your tax liability? Does your business need extra time to get the documents required to meet the information requirements for your tax filing? All three of these situations cause undue stress for individuals. There are easy and simple ways to get an IRS tax filing extension online as outlined below. Whether you need extra time to file or pay, both can be done quickly online.
Pay Now, File Later
First, getting an extension to file in no way alleviates your tax liability and your taxes will still be due and payable by the 15th of April. As long as you pay 90% of your tax liability, the IRS will not impose a late payment penalty. Many individuals find it easier to get an extension and pay what they think their tax liability will be, and then file a return when they’re ready.
A lot of small business owners and S-Corps choose to extend their tax filing deadline simply because many of the documents and statements needed to properly file their tax return are not available before the April 15th deadline. By paying their taxes on time and extending their filing due date, they can file when they are properly prepared to do so.
The monetary consequences for not filing your return by the 15th April deadline can be quite harsh, including interest and penalty charges that can accumulate to over 25% per month. If you don’t pay at least 90% of your taxes on time, there will be a 0.5% monthly payment penalty on the outstanding balance. If you fail to file on time, the IRS will charge a late filing penalty of 5% per month. There is also a minimum late filing penalty of $135 if your return is more than 60 days overdue.
There are many other consequences of not filing and not paying you taxes, so take 10 minutes to file an extension and pay 90% of your tax bill to avoid these harsh penalties.
Tax Extension Filing Online
With two different ways to file an online extension, both of which take only minutes to complete, you should have no problem finding the time to avoid a doubling of your tax bill from penalties.
IRS E-File provides individuals the ability to file Form 4868 electronically from your laptop, computer, or tablet from the comfort of your home. This electronic form is filled out on the IRS’ website under the ‘Free File’ tab on the homepage. This electronic fillable form allows you to fill out Form 4868 and submit tax payment in order to extend your tax return filing by up to 6 months.
The same procedure is included in most commercially available tax filing software, just look for the ‘Tax Extension Filing’ option in the software. Both routes take up to 30 minutes and must be completed and submitted before midnight on the 15th of April, so leave yourself enough time.
Simply Pay your Taxes
If you pay all or part of your tax bill online using one of the IRS’ electronic payment options, your tax filing extension will be processed automatically. You can pay by debit card or credit card, usually with an extra vendor fee, and extend your filing deadline by 6 months.
Filing an extension online for your tax return is simple and easy, and it helps you avoid costly penalties if you pay 90% of your tax liability at the same time.