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This may include Covid-19 relief information, personal documentation, last year’s tax information, financial statements, work information, and more. For Individualsįor individuals, whether employed or self-employed, you will file a Form 4868 along with any specified information. You just won’t have to pay it until the extended deadline. Remember, you’re still filing your taxes the same way you would before the tax deadline.
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You can e-file, mail, or fax this completed form to them prior to the tax deadline.Īgain, you want to give yourself ample time to file this extension to ensure the IRS receives it in time, which will save you some fees, especially if you are mailing the form to them. To file an extension, all you have to do is submit the proper form to the Internal Revenue Service (IRS). If that happens, you could find serious financial trouble.Īlthough, a one-time extension is not likely to cause too much damage, assuming you give yourself ample time to prepare for next year. Giving yourself enough time to prepare in advance is always a good idea.įor self-employed people, filing an extension is the last thing you want to do, as it could lead to a vicious cycle of filing extensions every year until you wind up missing the October deadline. However, you probably want to avoid it, especially if you know you will owe taxes again next year. Is Filing an Extension Bad?īecause there are no fees or penalties for filing an extension, it isn’t an inherently “bad” thing to do. You can expect a fee of up to 5% of the total tax due, and additional penalties of no less than $100 after 60 days.īecause of this, it’s critical that you file the extension on time. This is rather uncommon, but in extreme circumstances, such as filing for bankruptcy, it is necessary to find alternate arrangements.Īlso, if you don’t file the extension in time, there will be a fee for missing the April deadline, and the fees will continue to accumulate from there. However, if you fail to pay after the extension or don’t meet the extended deadline, fees will accumulate unless you reach an agreement with the IRS. This is a common concern for first-time extension filers, but you can rest assured that there are no penalties for filing an extension. Are There Fees for Filing Extensions?Īssuming you file the extension at the right time, then no, there aren’t any fees. We suggest doing this as soon as possible if you know you will need an extension. However, if you wait too long, the IRS may not receive your extension application in time.
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If you want to know when to file tax extensions, the deadline is the same as the normal tax season which is Tuesday, April 19 in 2022. Yes, there is a deadline to file an extension, and you don’t want to wait until then. If you believe you need to file for one, then you can file a six-month extension with the IRS, bringing the deadline to October. During that period, you can pay down your tax bill however you like until the balance is brought down to zero. If that means filing an extension, it’s best to do it sooner rather than later. This way, you can prepare for the worst and hope for the best. We recommend calculating your tax bill as far in advance as possible to get a rough idea of what you own. Whether you’re an employee, independent contractor, investor, or business owner, one mistake on a tax form or a new tax law could lead to a significantly higher tax bill.Ĭonsequently, we’re not always prepared for the bill by mid-April, which is why extensions exist in the first place. Ideally, you won’t have to file an extension, but sometimes our tax bills are higher than we anticipate. It’s very common and you’re not the only one who needs it! Well, it’s a way to give yourself more time to pay your tax bill or file your refund if you need more time to prepare.