2012 Tax Extension
Filing a Tax Extension with the IRS can delay your tax return deadline by up to 6 months. The IRS is now accepting this online through E-Filing. There are several forms that can be filed for this. The IRS Form 7004 can be filed for businesses wishing to extend their tax return deadline. For individuals that need a tax extension, they can use the Form 4868 for a 6 month extension. Non Profit organizations are not exempt from being able to file this form either. Nonprofits can file the Form 8868 for an automatic 3 month extension, followed by an additional 3 month extension if needed."Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability".
Filing a tax extension can be very helpful to those with very complicated tax returns. The additional time to file the return can give taxpayers and tax preparers more time to prepare the return. This allows for better attention to be paid to the little details of each return so that you may get the most out of your credits or refunds.
Filing a Tax Extension does not mean that taxes will not be due. This simply means that the tax return itself does not need to be filed until the later deadline. The IRS still expects full tax payment as of the traditional deadlines. If you are expecting any credits or refunds, you can use the extended time to organize the appropriate paperwork in order to maximize your refunds or credits.
The great advantage of E-Filing this form is the speed at which the return can be accepted. Once the form is submitted through ExpressExtension.com it is typically accepted within minutes of filing. If you are incredibly close to the deadline, this helps ease concern of late penalties. Instead of waiting on the postal mail to deliver this form, or driving to the IRS office itself, it can be stress relieving to submit this form directly from your home or office.
Filing this form online can be done through Expressextension.com one of the greatest things about filing with Express Extension is their dedication to quality customer support. If you have any questions about the filing process or would like a little help along the way, you can call, email or chat online with their Tax Extension team anytime from their US-Based Customer Support Center in Rock Hill, South Carolina. You can email the team at firstname.lastname@example.org or chat with them online from the website: ExpressExtension.com Overall, it is hard to go wrong with an easy-to-use system, a helpful team along the way, and affordable pricing options.
IRS Penalties for Late Filing of Income Tax Return
IRS Penalties and interest may be for a number of different occurrences. Some examples are: understating your tax liability, understating a reportable transaction, file an erroneous claim for a refund or credit, or file a frivolous tax submission. But the easiest way to receive a penalty is by filing late.
When it comes to penalties and interest, the Internal Revenue Code may impose many different types of penalties. These can be as simple as a civil fine, or as harsh as imprisonment, depending on the particular scenario.
How IRS Penalties Are Calculated?
Penalty for Filing Late: If a return is not filed by the due date, you may have to pay a failure-to-file penalty. This amount is typically 5% per month, but not greater than 25%. The penalty is based on the unpaid amount as of the due date.
Penalty for Paying Late: The Failure-to-Pay Penalty of .5% of unpaid taxes per Month is incurred each month after taxes due are not paid.
NOTE: If there is no tax balance due (or you qualify for a refund) there will be no penalty for late filing.
Out of Country: Individuals who live and work out of the country automatically receive a two month extension without filing a Form 4868. However, a return must be filed by October 15 at the latest.
Reasonable Cause: The IRS does also waive penalties for those individuals and businesses that had Reasonable Cause to not file or pay on time. This is a more subjective reason to be reserved for the most extreme circumstances, and to be determined by the IRS.
Extend Your Deadline: An individual or business may elect to file for an extension of up to 6 months. This is not an extension of time to pay; this is an extension of time to file.
Obviously the best way to avoid penalties and interest is to simply file on time! However, sometimes this is easier said than done. There are many different services available for use by individuals and businesses to extend filing deadlines. www.expressextension.com is a simple online tool that can help you avoid late penalties by filing for an extension. Ironically, one of the easiest ways to incur a penalty is also very easy to avoid.
Expressextension.com provides easy to use, quick and secure navigation process to file IRS Tax Extension Forms 4868, 7004 & 8868. E-file IRS Tax Extension Forms and get up to six months extension of time to file your Federal income tax return.