Still haven’t filed your taxes? No problem!
Tax deadlines sneak up on us every year, and if you are unable to get your return filed by the due dates you can request extra time. The IRS provides filing extensions for both individuals and businesses to help you avoid penalties and interest on the amount you may owe. Failure to file this extension can result in the IRS assessing a penalty of 5% of the total tax due per month for each month your return is late up to a maximum of 25%.
The most important thing to remember is that filing an extension does not extend the due date for paying your taxes. If a tax liability is anticipated, you must make your payment at the time the IRS Form 4868 or the IRS Form 7004 (the individual and business extension forms, respectively) is filed to avoid an additional late payment penalty.
Now let’s examine the filing due dates and extension filing requirements.
The due date for individuals’ tax return is April 15 each year. This date may change by a few days if the due date falls on a weekend or holiday. Individuals can file IRS Form 4868 to request an automatic six-month extension, making the new deadline October 15. The request for the automatic extension must be filed on or before the April 15 due date to be allowed.
Because U.S. expats live outside the U.S., they automatically receive a special two-month filing extension—making their tax return deadline June 15—which does not require filing Form 4868. However, if you are an expat and need to file an extension because you unable to complete and file your tax return by June 15, you can file IRS Form 4868 on or before the June 15 deadline to receive the extension. The only downside is that expats will only receive a four-month extension: the due date will still be October 15 just like all stateside US taxpayers.
The due date for US corporations’ tax returns is March 15 each year. Businesses can file IRS Form 7004 on or before the March 15 due date to receive an automatic six-month extension, making the new deadline September 15. If you are a Schedule C business filer, the extension for your business will be included with your individual extension using IRS Form 7004.
While it isn’t difficult to obtain a filing extension, it is imperative that your extension forms be properly completed and filed. At INTAXACT, clients receive a FREE extension filing on their behalf—by an experienced CPA—when they register. Become an INTAXACT client today and let us help you get your extension e-filed right away!