The IRS allows filers to add time to their return through tax extensions, which add another six months to the original end of the tax season on April 15. It’s an option for those who are having problems with getting their returns completed on time, or owe money and don’t have all of it on hand by the deadline. There will be a penalty to pay if money is owed, but the penalty may be small enough that it won’t make much of a difference.
In order to get a tax extension, a form has to be filed, known as Form 4868. This must be submitted by April 15 in order to get the extension to October 15. The form can be filed online or by mail. If submitted by mail, the postmark on the envelope has to be April 15 or earlier.
When the extension is filed and taxes are owed, an interest penalty starts. The IRS adds one half of one percent (0.5) to the money that is owed, and is due on October 15. The penalty can be reduced or avoided by paying some or all of what is owed by April 15 and the rest later.
For help with your taxes this tax season, contact the Phocus Companies located in the Phoenix, Arizona area. Professionals are available and ready to assist you with your return.
