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Filing A Tax Return Extensions

An extension of time to file your tax return does not grant you any extension of time to pay your tax liability.

Filing a late return will subject you to a penalty of 5% per month on any unpaid balance.

Use Form 4868 to apply for an extension to file.

An extension doesn't extend your time to pay. If you don't pay at least 90% of the tax by April 15, a 0.5% per month late-payment penalty will apply to any unpaid balance for up to 50 months.

Get an automatic 2-month extension if you reside outside the U.S. during filing time.

Why file an extension?

Without a valid extension, a late-filed return is subject to a 5% per month penalty on any unpaid balance. The combined penalties for late-filing and late-payment can be as much as 47.5% (see below) of the unpaid tax.

Filing an Extension
File Form 4868 to automatically extend your filing deadline 6 months to Oct. 15. more information here Extension of Time to File Your Return

If you don't file your return on time, both the late-filing and late-payment penalties apply. If both penalties apply, a penalty of up to 25% of the balance due will be charged in the first 5 months. The 0.5% failure to pay penalty will continue to apply for up to 45 more months. Note: Interest on the unpaid balance and accrued penalty will continue to be charged until the balance due is paid.

You can get an extension of time from the IRS to file your return.

You can get an automatic six-month tax extension for filing Form 1040, Form 1040A or Form 1040EZ by filing Form 4868, Application for Automatic

Extension of Time to File U.S. Individual Income Return on or before April 15th (April 17th for 2006). By filing the extension form, you avoid the late filing penalty. However, Form 4868 does not extend the time to pay your taxes. You must pay the amount estimated to be due for the year. Interest will be charged on unpaid amounts from the original due date of the return.

You should send your extension form to the IRS Service Center where you file your return. You can also request to pay any IRS amount due in Installment Payments.

No late-payment penalties will be imposed if the total paid equals at least 90% of the total due and the remaining unpaid balance is paid before the end of the extension period.

If you are unable to pay the due amount and doing so would result in a severe hardship you can apply for a special payment extension on Form 1127.

Special IRS rules apply to U.S. citizens and residents who are not in the United States on April 15th. For more information, refer to IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

You are allowed an automatic 2-month tax extension (until June 15th, if you use a calendar tax year) to file your tax return and pay any tax that is due if you are a U.S. Citizen or resident and on the regular due date (April 15th, if you use a calendar tax year):

You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or you are in the military or naval service on duty outside the United States and Puerto Rico.

In such instances, you will have an additional two months to file your return and pay any amount due, but interest will be charged from the original due date of the return on any unpaid total. You must attach a statement to your return, showing that you met the requirements.

Vacationing is a temporary status that does not meet the criteria for the automatic 2-month extension.

An extension of time to file your return is not valid if it does not show an accurate estimate of your liability - based upon all the facts and information that you have at the time that you filed the extension. If your estimate is later found by the IRS to be "improper" your extension will be revoked and you'll be subject to penalties for failure to file your return.

Some storm victims get an extension in some situations
Taxpayers in West Virginia, Rhode Island and Massachusetts got a break to file federal returns.

The federal filing deadline allows some taxpayers who have other things on their minds, such as coping with recent storm damage, to get a bit of a break from the IRS.

The agency decided to give some victims of severe storms and flooding in West Virginia, Rhode Island and Massachusetts more time to get their taxes done.

The IRS made the decision after Obama declared major disasters in portions of those three states. Taxpayers who lived or had businesses in certain storm-ravage counties in West Virginia, Rhode Island and Massachusetts had until May 11 to file their federal returns. Just goes to show there is some sympathy from Uncle Same when it is in need.


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