Each year on April 15, taxpayers find themselves unprepared to file their tax returns with the Internal Revenue Service or New York State. Taxpayers may be unprepared for any reason such as; procrastination, did not receive all the paperwork needed to file the return, or complexities of the return they have to file. Over ten million Americans each year get an extension on filing their federal income tax returns, so it is common.
Filing for an extension is relatively easy for taxpayers. You do not have to provide the Internal Revenue Service with a reason or excuse, and they will not deny your application if you do or do not have a reason. However, it is important to note that when you file an extension on your current tax year, you are filing an extension of time to file, but this is not an extension of time to pay. If you believe that you will owe taxes and you decided to file for an extension, you should include a payment with your extension request. The IRS will still impose penalties on the tax debt owed and not paid by April 15, and the debt will accrue interest if not paid on April 15 each year.
There are several avenues that taxpayers can take when filing for an IRS extension. They will need to file Form 4868, the Application For Automatic Extension of Time to File U.S. Individual Tax Returns. This can be filed online through IRS.gov, or it can be filed on paper after the taxpayer mailed the form in. If you file electronically, you do not need to mail in the form as well. Taxpayers can request an automatic extension of time to file their federal income tax return by paying part or all of the estimated income tax owed by credit card using the Electronic Federal Tax Payment System (EFTPS). This can be done by phone or internet, and the information is listed on Form 4868.