By Kelly Twedell Published April 8, 2010 Credit Unions Online
The IRS wants your money, even if it is late; on that note, they don’t mind paying you back your money late either. With the April 15th deadline quickly approaching, there are many individuals who will need to take a tax extension. What type of circumstances and guidance are outlined for extensions through the Internal Revenue Service?
No explanation needs to be provided to the IRS, but for individual tax returns, a Form 4868 must be filed. This form is an Application of Automatic Extension of Time to File U.S. Individual Income Tax Return. This entitles you to a six month extension, October 15, 2010.
If a balance is due in your tax return, your tax payment is due April 15, 2011. The IRS allows up to six months after the 15th deadline to file an income tax return, but no extensions are granted for tax payments. If the payment is not made by the due date, interest is incurred and the IRS can assess penalties for all late tax payments.
If you are overseas on April 15th you are granted an automatic 2-month tax extension to file your return and pay any tax that is due if you are a U.S. Citizen or resident either serving in the military or you are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the U.S. and Puerto Rico.
This year the IRS expects 10 million extension requests, of that number, 1.9 million filed electronically, and the IRS is on board to facilitate our ever progressing world of technology at our fingertips.
For 2009, anyone, regardless of income, can e-file their extensions at no cost from a home computer using IRS traditional FreeFile forms. E-filing a request for an extension is convenient, safe and secure, and taxpayers receive confirmation to keep with their records.
Tips for Preparing and Filing Your Tax Extension
A quick list of items to have handy when preparing your extension:
Your spouse’s (if applicable) and your SSN and Date of birth
A copy of your previous years’ tax return (for your AGI and tax liability from last year)
How much money you have paid in taxes in 2009
Your 2009 tax liability
Your bank account and routing number
Your user ID and password for your account on TurboTax.com (if you have one)