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Can I still file an IRS tax extension?

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IRS Tax Extension

Filing your taxes can feel like a race against the clock, especially when life gets in the way. You may have had an unexpected event, you’re dealing with a complex financial situation, or you can’t find all your paperwork. That’s where an IRS tax extension comes in.

An IRS tax extension gives you an extra six months to file your current year tax return. It’s a simple, stress-free way to get the time you need to make sure your return is accurate and complete. This can help you avoid mistakes that could end up costing you more in the long run.

The best part? It’s incredibly easy to get one. You just need to fill out a simple form, or, with us, create an extension account, and we can file it for you. Generally, the IRS will almost always grant your request, as long as you file it on time. This is a tool available to nearly everyone, and it’s a great way to take control of the tax filing process.

One Important Thing to Remember

While an IRS tax extension gives you more time to file your return, it does not give you more time to pay any taxes you owe. You’ll still need to pay any estimated taxes by the original tax deadline to avoid potential penalties and interest.

Typically, the original tax deadline is April 15. If you do not file your extension by this date, you will not be eligible for your tax extension. 

We’ll review deadlines later for clarification.

Can I get a second extension?

It is generally not possible to get a second extension for federal taxes after the initial six-month extension has expired. The automatic extension, filed using Form 4868, gives most individual taxpayers until October 15th to file their return. 

However, there are a few exceptions where you may be able to get more time, especially if you have been affected by a natural disaster or are a U.S. citizen or resident living abroad.

What if I don’t file an extension or I don’t file before the extended deadline?

If you forget to file an extension and it’s past the deadline or if you filed an extension and you don’t file prior to the extended deadline, you will be subject to the Failure to File penalty. This penalty is 5% of the unpaid taxes for each month or part of a month your tax return is late and its capped at 25% of your unpaid taxes. 

Benefits of Filing a Tax Extension

Filing a tax extension can provide several benefits. Here’s why it’s a smart move:

  1. Avoids penalties. If you miss the tax deadline without an extension, you’ll likely face penalties for filing late. An extension helps you, especially if something unexpected kept you from filing on time.
  2. Helps with accuracy. More time means you can carefully review your documents, reducing the risk of mistakes that could lead to an audit. You might even discover extra deductions or credits you missed the first time around.
  3. Gives you time to find missing paperwork. If you’re still waiting on a W-2 or a 1099, an extension gives you the extra time you need to gather all your paperwork and file a complete and accurate return.
  4. Allows for better planning. For those with complex finances, an extension provides the breathing room to develop a smarter tax strategy, potentially saving you money in the long run.

In short, an extension relieves the pressure of the tax deadline, allowing you to file with confidence and peace of mind.

Deadlines for Filing a Tax Extension

The deadline to request a tax extension for your taxes is usually April 15th. If that date falls on a weekend or a holiday, the IRS extends the tax deadline to the next business day. It’s crucial to file the extension request before the tax filing deadline to avoid penalties and interest. 

Remember, this deadline is for the extension request, not the actual filing of your taxes. If approved, the extension grants you until October 15 of that year to file your tax return. These six months should be used wisely to gather any missing documents and ensure your return is complete. Once the deadline has passed, you cannot file for another extension.

We recommend that you keep track of state deadlines as well. Some states automatically extend your state filing deadline when you file a federal extension, while others require a separate application. 

How to File a Tax Extension

Filing a tax extension is a straightforward process, and there are several methods available to do so. Choosing the right method depends on your personal preference and comfort with technology. Here are the common ways to file an extension:

1. Electronically through IRS e-file

The IRS offers an electronic option to file for an extension through its e-file system. Many tax preparation software programs also support this feature, allowing you to submit your extension request online quickly and seamlessly.

Using IRS e-file reduces the likelihood of errors and processes your request promptly. It’s a user-friendly option for those who are comfortable navigating online platforms. Nonetheless, electronic filing is more secure and faster than mailing paper forms, reducing the risk of lost documents.

2. Using Form 4868

Another way to file a tax extension is by completing Form 4868, “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return”. This form can be submitted electronically or by mail. The IRS e-file system or tax software is convenient for fast processing and confirmation that your extension request has been received.

If you are paper-filing your extension request, ensure that you postmark your mail by the tax deadline. While this method is less immediate, it can be useful for those who prefer traditional paperwork. 

3. Payment Options

If you expect to owe taxes, consider making a payment with your extension request. This can be done electronically or by including payment with your mailed form. Paying some or all of your estimated taxes can help reduce or eliminate interest and penalties on any taxes owed, making it a financially wise decision.

Even with a tax extension, it’s wise to pay what you can. Doing so shows the IRS you demonstrate good faith, and can lessen the financial burden come October. The interest on unpaid taxes can add up quickly, so paying something now can save you a lot of money and stress when you file in October.

What Happens After Filing a Tax Extension?

Once you file your tax extension, you’ll receive confirmation from the IRS if you filed electronically. With our services, you should be able to view the status of your e-filed extension within 48 hours. If you mailed your request, allow some time for processing, as it may take longer to receive acknowledgment. You will need to contact the IRS directly about the status of your extension request.

After filing, it’s essential to continue organizing your financial documents and preparing for your eventual tax return submission. The extension period should be used productively to ensure your tax return is as accurate and complete as possible.

Common Misconceptions About Tax Extensions

Myth: Extensions Increase the Chance of an Audit

Many people worry that filing a tax extension will make them a target for an IRS audit. Let’s clear up this common myth: it’s not true.

The IRS knows that life happens. They encourage taxpayers to file an accurate return, and a tax extension is a completely normal way to ensure you have the time to do just that. Filing an extension does not, by itself, raise a red flag or increase your chance of an audit. The best way to avoid an audit is to file an accurate return, whether you do it by the original deadline or with a tax extension. 

Myth: You Can Delay Payment with an Extension

It’s a common and costly mistake to think that a tax extension gives you more time to pay your taxes. It doesn’t. A tax extension only gives you extra time to file your paperwork, but any taxes you owe are still due by the original deadline. If you don’t pay on time, you’ll be hit with interest and penalties.

To avoid this, it’s crucial to estimate what you owe and pay that amount by the April deadline, even if you’re filing for an extension. By doing so, you’ll manage your financial responsibilities wisely and ensure your tax extension truly works in your favor.

Keep an eye out for our new tax calculator coming out next year to help you estimate what you owe.

Consider a Tax Extension

Think of a tax extension as a valuable tool to help you file your taxes the right way. It gives you extra time to get your return accurate, but remember, you still need to pay any taxes you owe by the original deadline. By understanding the rules and planning, you can make the tax filing process much smoother and less stressful.

In the end, a tax extension is all about giving you peace of mind. By taking the time to file correctly, you can avoid penalties and focus on your financial goals.

Need help with your taxes or a tax extension?

We’re here to help. Our tax professionals can guide you through the process, ensuring your return is accurate and filed on time.

Contact us to have a stress-free tax season next year!

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