All You Need To Know About Tax Extensions

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

For those who were unable to complete their tax returns by this year's April 18th or 19th deadline, the IRS offers what is known as a tax extension to provide additional filing time. However, in order to be granted a tax extension, taxpayers must submit a request for one prior to the original deadline - once approved, this will open up an additional 6 month window for filing.

If there ever comes a time where you need to file for a tax extension, here are a few important things you should know:

1. Tax extensions grant extra time to file, not extra time to pay any taxes that are due. As you submit Form 4868 to request an extension, you'll need to also submit payment for taxes that are owed (if applicable) so that you don't wind up paying more in the future.
2. You can get a tax extension in one of three ways: 1) You can e-file Tax Form 4868, 2) You can mail the IRS a hard copy of Tax Form 4868, or 3) You can pay either all or part of what you expect you will owe using the Electronic Federal Tax Payment System. Before you proceed, just be sure to read through Tax Form 4868 in its entirety so that there are no surprises about what the extension entails.
3. Since you are still expected to pay your taxes by the deadline, you will have to estimate how much you owe at the time of filing. Should the IRS feel that you did not make an effort to do so after reviewing your request, there is a chance that they will not grant you an extension.

Life is filled with unexpected circumstances, so if you do ever have the need to file for a tax extension, there is no need to worry so long as you have a good understanding of how they can help! To learn more about tax extensions, please contact the American Investment Planners LLC tax planning team at (516) 932-5130.