Preparing your tax return can be incredibly complicated. This is especially true if you have a great deal of wealth, multiple sources of income, and a diversified portfolio. Or, if you run your own business, your individual tax return is likely to require professional assistance to ensure accuracy and that every tax advantage is considered. Whatever the scenario, as April 15th approaches each year, it is not uncommon for individuals and businesses to need additional time to prepare their tax returns. Fortunately, the IRS allows taxpayers an extension of time to file their return.
For Individual Taxpayers
The IRS allows anyone to file for an automatic six-month extension to file their tax return. In order to do this, you must fill out Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. You must file this by April 15th for the automatic extension to take effect.
In addition, if you pay estimated taxes and pay these taxes by the deadline, you do not have to submit a separate Form 4868 to extend your time to file a tax return. Instead, you can simply indicate that you will seek an extension at the time you make your payment.
Who Files Tax Extensions?
A lot of taxpayers file for extensions. For some younger taxpayers, it may be procrastination or because they simply need more time to figure out how to properly complete a tax return. However, this is not the norm. It is a lot more common for taxpayers to seek extensions when their finances are complex or they have their own businesses. It is prudent to seek an extension in those circumstances because it takes time to make sure that the numbers are accurate, that all possible deductions and credits have been accounted for, and that there are proper records to support every element of the return. It is always wiser to take a thorough approach to preparing your tax return than rushing to make the April 15th deadline.
As a warning, however, be aware that an extension to file your tax return is not the same thing as an extension to pay your tax obligation. If you owe money to the IRS, you should still pay it in a timely manner to avoid interest and penalties, even if you file for an extension.
Call an Experienced Tax Attorney
If you need tax assistance, call me. I have two decades of experience as a tax lawyer, and can guide you through any IRS tax situation. I earned a Master of Law Degree (LLM) in Taxation and am licensed to practice in the United States Tax Court. Let me help you. Contact The Law Offices of Robert S. Thomas at 847-392-5893 and schedule a consultation or visit our website today.