Sunday, April 13, 2014

Here's How To Get More Time To File Your Tax Return

Some helpful advice from AP via HuffPo:
The Internal Revenue Service already has received nearly 100 million tax returns, but anticipates getting about 35 million more by the midnight Tuesday deadline.

Many other taxpayers, however, are opting for plan B and asking for more time to file.

The IRS expects roughly 12 million taxpayers will make such a request before the tax filing deadline, enabling them to take an additional six months — until Oct. 15 — to prepare their tax return.

Getting started late and rushing to file can lead to headaches, particularly if you haven't organized the various receipts and forms, such as bank statements or W-2 forms that you may need to complete your return.

"When you sit down to do your return at the last minute, if you're realizing you're stuck, don't know what's happening or have an unexpected result and need more help, the best thing to do would be to file for an extension," said Lindsey Buchholz, a principal analyst at H&R Block.

If it looks like you're not going to make the deadline, and you owe unpaid taxes, it pays to ask for more time. That's because if you miss the deadline and fail to ask for an extension, the IRS will hit you with a monthly penalty of 5 percent of your unpaid tax balance. The quickest way to request an extension is to fill out the automatic extension of time to file - Form 4868 on . It's also available through most tax preparation software.

Extension requests via mail must be postmarked by Tuesday to be considered on time. Forms filed on the IRS website or by using tax software can be sent in as late as 11:59 p.m. EDT on Tuesday...Getting more time to file your return doesn't mean you have more time to pay your 2013 tax bill, however.

"Some people mistakenly think that if they owe money and they file an extension that also gets them an extra six months to pay, which is not the case," Buchholz said.

The IRS requires taxpayers to pay up by Tuesday's deadline, or face interest charges on unpaid taxes.


If you file your tax return on time or get an extension, but fail to pay, the IRS will charge a monthly late payment penalty of 0.5 percent of your unpaid taxes. That translates to a $25 penalty if you owe $5,000. It is charged each month or part of a month the tax goes unpaid, up to 25 percent, or $1,250 on that $5,000.

In addition, the IRS will assess an annual 3 percent interest rate, compounded daily, on what you owe.

You can avoid the 0.5 percent late-payment penalty if you pay either 90 percent of your 2013 tax balance by April 15, or if you pay an amount equal to the full amount you paid on your 2012 tax return....Filers who haven't sorted out their tax return yet and don't know how much they owe can send the IRS a payment based on an estimate of their tax debt. 

1 comment:

  1. Oh the tangled web we weave when we practice to deceive! For most Americans, the federal income tax is a non-started as "it doesn't apply". Earnings from activities of an embedded worker in the private sector engaged in a common occupation are, generally, outside the taxing scope of the income tax laws. This truth has long been lost or hidden in plain sight of most Americans. But, relearning this truth can set one free of the Tax Filing deadline and the scam the IRS and American business lays on Americans. See for the facts, the evidence, the documentation and the results of the tax scam and get free of it!