April 15 is fast approaching and some might not be ready to file yet. Fear not, anyone can apply for an extension. Yes, even you. There are a three things to know first before filing for an extension.
1. Form 4868 is what you need to file in lieu of your Federal Income Tax Return. You can file it by mail or electronically, as long as it’s in by April 15 you will have an automatic 6 month extension to file.
2. Remember that this form is just an extension to file, not an extension to pay taxes. You must have an estimate of the amount you owe and send it when filing for an extension to avoid any late fees or penalties. Any underpayment of taxes not paid by April 15 is subject to late fees and interest.
3. The purpose of this form isn’t just to procrastinate until October. The time is meant to allow for complete and accurate filing without assessing a late filing penalty. The extra time granted is usually used to seek professional advice about your financial situation.
There are many benefits to requesting an extension to file your income taxes. It’s a great way to avoid the busy rush of tax season and your tax professional will more likely have time after mid-April. The most important thing to remember is that it’s an extension of time to file your return, not to pay taxes due.
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