To avoid costly penalties, interest and late payment penalties, filing your tax returns on time is a must. If for some reason a taxpayer cannot file his or her taxes by the deadline, the taxpayer may apply for an extension by filing an extension request form.
By filing for an extension, the taxpayer has until October 15 to file a return. The form the taxpayer needs to file for the extension is the Internal Revenue (IRS) form 4868 that is provided by the IRS. By filing for, and getting the extension, taxpayer will not have to pay the late penalty.
The taxpayer may get the form from his or her tax consultant, accountant, attorney, or from a local branch of the IRS. Sometimes the forms may be found at a local post office branch.
As a taxpayer, you may also file for 4868 electronically and pay any taxes that are due by credit card.
Aside from not having to pay a late penalty, the taxpayer may still have to pay interest on any taxes owed for the year if the payment is not receive by the IRS by April 16, even if he or she are granted a filing extension.
Form 4868 provides that the taxpayer make a good faith estimate of your tax liability based on all available information that he or she has at the time of filing. The taxpayer will still be subject to interest charges and other penalties.
Although an automatic extension is given when the taxpayer files Form 4868, the IRS maintains the right to terminate the extension by mailing out a notice at least 10 days prior to the termination date in the notice.
If you, the taxpayer, owe taxes and cannot pay them by the extension date, a Form 9465 should be filed to request an installment payment arrangement.
For people who are out of the country when the tax deadline passes, the taxpayer does not get an automatic extension for filing and paying your taxes and is still responsible for filing his or her tax returns on time. If you are going to be out of the country and want a filing extension, you must submit a Form 4868 before the filing deadline.