Should You File an Extension?

tax extensionThe countdown is on. In exactly two weeks, the tax deadline will be here.

So, if you’ve been too busy following the basketball championships to find time to file your taxes by April 15th, your answer may be yes to filing an extension this year.

Over 10 million people and 5 million businesses file for extensions. Here is why you may need to as well. 

  • Life threw a curveball. Natural disasters, divorce, or a death in the family can easily throw you off track. An extension can help ease your situation and take the burden off your shoulders. 
  • Lost paperwork. Don’t worry if the dog ate your W-2 and you’re still waiting on a new one in the mail. If you need a little extra time to get yourself together, an extension gives you 6 extra months to submit your tax return.  
  • Can’t pay. If you can’t make the required payment for what you owe, file your taxes on time anyway. Extensions only give you more time to get your paperwork submitted to the IRS, not more to time to pay. The penalty for not filing on time is 5% per month up to a maximum of 25% of the balance due. Additionally, failing to pay results in interest on the amount you didn’t pay by the April 15th deadline. 

An extension gives you until October 15th to file your return. To file for an extension, electronically submit or mail Form 4868 by April 15th to the IRS. You can also make a payment of all or part of your income tax due through the IRS payment system.

To find a local Liberty Tax office where you can get additional information on how extensions work, use our office locator or call 1-866-871-1040.

Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

Posted To: Miss Liberty Tax By: Miss Liberty Tax On: Wednesday, April 02, 2014
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