If You Filed A 6-Month Tax Extension, Your Deadline Is Coming Up Soon
Avoid Penalties By Filing On Time
If you were granted a 6-month extension to file your taxes, keep in mind that the filing extension date is less than two weeks away.
If you are wondering what is involved with filing an extension, it’s actually a very simple process. You are required to submit Form 4868 by the regular filing date of April 15. You do not have to explain why you are requesting an extension. In the majority of cases, the IRS will grant you the extra time provided you meet the eligibility requirements. Form 4868 will require you to show your properly estimated tax liability based on the information that is available to you.
People file for tax extensions for a number of reasons. An extension is typically used by people who need more time to get all of their information ready, particularly if there has been a delay in receiving their 1099 or to make corrections to the 1099 should they be required.
Remember, a filing extension does not mean that you have an extension on paying your taxes. Taxes are still due on April 15. Failure to file your taxes and failure to pay your taxes can both result in penalties and interest:
- Penalty for failure to file: For every month that you do not file your taxes, your penalty will be 5% monthly of the net tax due. This is not to exceed 25%, which means that the failure to file penalty is generally not assessed for longer than 5 months. In addition, there is also a minimum penalty that will be incurred 60 days after the due date or extended due date. The minimum penalty is the smaller of $135 or 100% of unpaid tax.
- Penalty for failure to pay: For every month that you do not pay your taxes, your penalty will be .5% monthly of net tax due. Again, this number is not to exceed 25%, which means that the failure to pay penalty will generally not exceed 50 months. In addition to the penalty for failure to pay, interest will be assessed on any balance due.
- Penalty for failure to file and pay: For any months in which you have failed to file and failed to pay, the failure to file penalty will be reduced by the 0.5% failure to pay penalty. This takes the failure to file penalty to 4.5%, while the failure to pay penalty remains 0.5%. Therefore, if a taxpayer both fails to file and fails to pay, the combined monthly penalty is limited to 5% for the months where both are outstanding.
If you filed for an extension, remember that the due date for filing your tax return is coming up soon. Be sure to avoid extra penalties by getting your filing in on time!
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