Tax Extension

Taxpayers are reminded that Filing a Tax Extension is not an Extension to Pay Taxes

Taxpayers are reminded that if they have yet to file their federal income tax return, they still have a variety of options that are available to them. Not only is the IRS website accessible to taxpayers, but also provides a customer helpline where IRS agents are able to assist individuals who are seeking options to pay back their tax balance.

Individuals are encouraged to file their taxes electronically in order to receive their refund much quicker. In addition to this, e-filing greatly reduces tax return errors since the tax software does the calculations, flags common errors, and prompts taxpayers for missing information.

Taxpayers have the option to request more time

Anyone who may need additional time to file has the option to file an extension. One of the easiest ways to do so is for taxpayers to request an extension on Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.

It is important that tax filers understand that an extension to file is not an extension to pay back their tax balance that is due. In order to obtain an extension, taxpayers will need to estimate their tax liability on the form and pay any amount due. Tax payments are typically due by the initial tax deadline, and it is recommended that taxpayers try to pay as much as possible before the tax deadline. If a tax balance does carry over after the deadline, it is recommended that the tax filer continue to make payments or work with the IRS to set up a payment agreement to pay off the rest of their balance.

Taxpayers are reminded that they have the option to utilize IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a credit or debit card and get an automatic extension to file for the next tax year. Payments that are made with an extension request will reduce or, if the balance is paid in full, eliminate interest and late-payment penalties that apply to payments that are made after the tax filing deadline.

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