Does the deadline for tax filing trouble you? You could be at work or miss the W-2 sent by your employer. Whatever the reason, it seems that April 18 will not come. The great thing regarding this is that the Internal Revenue Service has an easy way to extend it by six months by applying for a 4868 form. And the agency does not care about the reason, as long as it requires an extension. It is estimated that about 12 million taxpayers applied for an extension two years ago.
BUT: You still have to pay taxes before April 18th, estimating what you owe. Use a tax estimator from one of your tax software to calculate it or consult a tax professional to help you out. If you do not pay on time, you will be charged for late payments and interest penalties. If you cannot pay taxes, you can request a small extension of 60 to 120 days. You will still receive fines and interest but at a lower rate. IRS also offers conditional agreements that allow you to make payments each month.
The introduction of an extension not only allows you to pay taxes before October but also helps you avoid fines for non-payment, which can result in a quarter of taxes owed. If you have retroactive tax changes after April, you can use them without changing the fees already charged.
Here are some reasons why an extension might be the right decision for you.
Missing Information: You may be disorganized and may not find all the appropriate forms to complete the tax return. Or maybe you did not receive all the forms. Forms, such as Form 1099 or Annex K-1, are usually delayed because the companies that sent them request their extension.
Snowbirds: Seniors who spend the coldest months of their primary residence may also receive "too late to send" forms by April 18th. If it is not before April or later, these taxpayers may want to extend an extension rather than speeding up their tax returns.
Events of life: If you are passing through a difficult time in your life, such as the death of a family member, a divorce, the loss of a job or a severe medical problem, paying your taxes may be a low priority. Ask for an extension and pay taxes when the trauma or stress has reduced.
Busy Tax Pro: If you are counting on a taxpayer to submit your return, you will find that he is swamped at this time of the year. Instead, ask your doctor to come back after the emergency has disappeared.
If you have recently moved abroad, you may not need an extension, but you may need more time to send it if you are not yet qualified for the alien earned exclusion, which can reduce important payment of taxes. According to the federal income website, "For the 2015 fiscal year, the maximum exclusion of foreign exchange earnings is $100,800 per qualified person".
Procrastination: If you are a person who has not collected your stuff and is probably not already gone, you know who you are, ask for an extension. In this way, you can delay your October presentation.
Traveling out of the city during the tax period?: By submitting tax returns electronically and by being able to obtain electronic copies of multiple forms, taxpayers who are outside the city during the reporting period can generally complete their returns and file them by the deadline of April. However, if you still need information on paper or if you do not feel comfortable with electronic filing, a tax holiday could compromise your ability to meet the shipping deadline.
Timing and Schedule interfere: Sometimes, you will not have time. People are busy and continue to say that they will receive taxes later and it will be tax day soon, and there is no way to get the refund back on time. Also, tax preparers are busy, and many will automatically request an extension for customers who bring their information within one week or two weeks of the deadline. Taking care of a big event of life can also make you miss the deadline. The loss of a lover, change, marriage or divorce can take time and energy. Submitting an extension will allow you to handle the situation when you need it without worrying about the preparation and submission of your tax return.
Flynn Financial Group Inc