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Tags: finance, income tax, extension of time to file your tax return
 There are many dates we remember fondly in life. There’s Valentine’s Day February 14th, Independence Day July 4th, Christmas day December 25th, your birthday, and of course Tax Day April 15th. OK so maybe we don’t remember April 15th that fondly, more of dread actually. Deny it or not April 15th is upon us again and you know what that means—time to pay the piper.
While we are diligent in giving the Internal Revenue Service (IRS) our hard earned income, it can’t be denied that things happen that could prevent us from filing our tax returns by the deadline. When this happens it’s time for you to get an extension of time to file your tax return.
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Surprisingly the IRS makes it easy for you to file a tax extension which is good for 6 months. This means that if your return is due on April 15th you have until October 15th to file. However, this tax extension only gives you a reprieve in the filing of the return.
It does not extend the time for paying your liability. You still pay penalties of between 5% to 0.5% per month, plus a monthly interest charge so it is highly recommended you pay even if it’s just estimated. There are two ways to file for a tax extension—using the IRS E-file system or through paper filing.
In either method you will be filing IRS Form 4868, Application for Automatic Extension of Time to File U.S. Income Tax Return. In making your payment for the estimated liabilities due you can use a credit card if using E-file or by check if sending Form 4868 by mail. Remember to file the tax extension request by the due date of your return.
There are also special tax extension rules that may apply for those filers who are 1) living outside the US; 2) outside of the US when the 6-month leeway expires, and; 3) serving in a combat zone or qualified hazardous duty area. If 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 if you are in military or naval service on duty outside the United States and Puerto Rico at the filing deadline, you can prolong the time to file your return and in some circumstances, also of the amount to pay.
To get the automatic 2 month tax extension, you need to attach a statement to your return explaining which of the above two situations qualified you. If you still aren’t able to file a return after the 2 month leeway you can get an additional 4 months extra to file by requesting for it by the initial 2 month due date.
However, this additional 4 months will not extend the time to pay, unlike the initial 2 months. In addition, if you are out of the country during the expiration of the 6 month tax extension you may request an additional discretionary 2 month extra simply by sending a written request to the IRS explaining why you need it.
As a member of the armed forces or merchant marine under the Department of Defense in a defined combat or hazardous duty zone the deadline for filing your return, paying any liabilities you may owe, and filing a claim for refund is automatically extended. The tax extension is usually for 180 days after the later of either the last day in a combat or hazardous duty zone or last day being hospitalized for injury from that zone.
While we may want to get our liabilities to our government over with sometimes things don’t go as planned. It’s always good to know that options such as these are available.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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