IRS extension: Missed the tax deadline? How to easily file for an IRS extension now
The form you need is very short (less than one page) so it’s quick to fill out. Very important: Getting an extension only delays filing, not paying your taxes. This means that if you owe money, you still have to pay it by April 15 to avoid penalties. “Taxes will still be due through April 15,” H&R Block’s Carl Breedlove said, according to USA Today.
When should you apply for an extension?
If you are missing important tax documents, you should apply for an extension. This includes documents such as K-1 forms that come from third parties and may arrive late. Applying for an extension gives you more time to accurately gather all the necessary information.
How to apply for an IRS extension
If you don’t owe any taxes, you can use IRS Free File online to request an extension. Another option is to submit Form 4868, the official extension form. If you are sending the form by mail, it must be sent before April 15. Delays in the mail can cause problems, so if your form is not mailed on time, it may be considered late, according to USA Today. To be safe, you can go to the post office and get a hand-stamped postmark.
If you’re short on time, online filing is faster and safer. If you owe money, you can pay online and choose “extend” as the type. In this case, you don’t even need to file Form 4868 separately. Some people, such as disaster victims, soldiers or those living abroad, may automatically receive extra time.
What happens if you don’t apply for an extension?
Penalties begin immediately if you miss the deadline and do not apply for an extension. The IRS imposes a “filing error” penalty of 5% of unpaid taxes each month. This penalty can be up to 25% of the tax payable. If your return is more than 60 days late, there is also a minimum penalty, as USA Today notes. The minimum penalty is $525 or 100% of the tax liability, whichever is less. There is also a “failure to pay” penalty if you do not pay taxes on time.
This is added to the outstanding tax at 0.5% per month, up to 25%. If you still don’t pay after the IRS notice, the penalty increases to 1% per month. The IRS may even warn of seizing assets if taxes are not paid. In addition to penalties, the IRS also charges interest on unpaid taxes. Interest rates vary, but earlier this year they were around 7% and compound daily.
Essential relaxation spot
If you don’t owe any taxes or are getting a refund, there are NO penalties for filing late. However, you should still apply soon because you will not receive your refund until you file.
How do you estimate your tax?
Multiply your extra income by your tax rate to estimate the tax. According to Yishai Kabaker via USA Today , experts recommend adding some extra amount as a safety buffer.
What if you can’t pay the full tax?
If you cannot pay the full amount, you can apply for an IRS payment plan. The IRS usually gives an expedited approval after your application. Different payment plans are available depending on your situation.
Don’t forget state taxes
State tax deadlines are generally the same as federal deadlines. Filing for a federal extension doesn’t always mean your state taxes have been extended. Some states require a separate extension form, while others accept the federal extension. That’s why you should check your state’s rules carefully.
FAQ
Q1. How can I get a tax extension after missing the April 15 deadline?
To save time by October 15, you can quickly file Form 4868 online or through IRS Free File.
Q2. Do I still have to pay tax if I apply for an extension?
Yes, you still need to pay your estimated tax by April 15 or penalties and interest will apply.
