Simply put, tax time is far from anyone’s favorite event of the year. Gathering paperwork, doing calculations, and figuring out deductions can take time and, with the deadline fast approaching, filing an IRS Tax Extension may be your best choice.
Thankfully, there is hope for the weary taxpayer in the form of an IRS tax extension. Filing a tax extension makes it possible for you to gain an extra six months to get the paperwork together.
Listed below are ten simple tips about filing a tax extension.
1. Anyone who thinks they will be unable to have their taxes finished by April 15 needs to go on and file for an extension.
2. When filing an extension, you need to fill out Form 4868. This will automatically give you an additional six months to finish up.
3. Filing for an extension is simple and won’t affect you in a negative way. If you feel the pressure, don’t feel bad about filing for some extra time.
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4. An extension only gives you time to finish your taxes; it doesn’t give you an extension on paying what you owe the government.
5. Failure to file can result in fines or even land you in serious trouble with the law! All legal action can be avoided when you file an extension. Otherwise you may end up having to hire a competent tax attorney to hep you sort things out.
6. Some people avoid filing an extension by simply slopping their taxes together. This is a dangerous practice and can result in an audit. If you feel pressured to get your taxes finished, it’s time to ask for an IRS tax extension.
7. If you’re already being audited for the previous year, than this is an excellent time to file for an extension, even if you don’t need it. The additional six months will give time for the audit to be finished, and prevent the current year from being audited in the process.
8. If you’re waiting to get a private letter ruling on a certain tax position, an audit will give you the additional time you need to gather this important information.
9. If you have moved, are moving, or are going through a stressful situation such as a health or family crisis, a tax extension can help you to get through the difficulty and postpone your taxes until you are better able to focus.
10. Be sure to take advantage of the extra six months and actually use them toward preparing your taxes. If you simply throw the paperwork aside, you will find yourself in just as much trouble at the end of the six months, and an extension will no longer be a possibility.
Filing for an IRS tax extension is an easy, honorable way to gain the extra time needed to gather and compile financial information for the IRS. If you need an extra six months to be prepared, take advantage of this great opportunity.