Tax filing is very important for every individual. The IRS has announced that returns for the tax year 2022 will be accepted beginning Monday, January 23, 2023. Moreover, the standard deadline for submitting a tax return in the United States is April 18, 2023. The tax filing date of April 18 is quickly approaching. But if you are lacking the necessary paperwork, missing invoices, or dealing with a family situation, then you can file for an income tax extension. So, the next question that comes to mind is how to file tax extensions.
How to File Tax Extension – Use Form 4868
You still have time to obtain an extension if you haven’t completed your taxes for the 2022 tax year. The Internal Revenue Service (IRS) will automatically grant you an extension until Oct. 16, 2023, to file your tax return. All you have to do is fill out Form 4868. If you are still thinking about how to file for a tax extension, then it can be done electronically or on paper. Requesting a tax extension is free and quick.
E- File Your Federal Income Tax Extension
To avoid a late-filing penalty from the IRS, you should request an extension on or before the April 18 deadline. Consider IRS Free File if you do not intend to utilize any tax software. The IRS collaborates with a nonprofit group called the Free File Alliance to give free, name-brand tax-preparation software to anyone earning less than a specific adjusted gross income.
IRS Free File is an electronic filing tool that allows you to submit Form 4868 electronically. You can obtain an automatic extension to file your tax return. When you submit the form, the IRS will give you an electronic acknowledgment.
How to File for a Tax Extension By Mail?
The taxpayers also have the choice of filing for a tax extension by mail. You can download Form 4868 from the official website. You can also call IRS at 800-829-3676 to order a form. When you are filing for an extension of your taxes, you must estimate your tax liabilities and enter them in part II of the form. Fill out the form and mail it to the IRS address.
The IRS offers special privileges in case of the following situations
You live outside the United States
When citizens live outside the United States and Puerto Rico, their primary place of business or duty is also outside the US and Puerto Rico. You have to fill out the IRS Form 2350: Application for Extension of Time to File U.S. Income Tax Return if you reside outside the US. Remember to include your return statement explaining why you should receive the extension.
You are a Military member and outside of the Nation
There are different provisions for military members. If you fall into these categories, your deadline for filing and paying taxes is extended by 180 days.
- You are in the armed forces and serving in a conflict zone.
- Military personnel has qualifying service outside of a combat zone.
- You are serving in the armed forces on deployment outside the United States.
How to File an Extension for State Taxes?
While the IRS requires you to complete Form 4868 in order to request a tax extension, each state has its own set of criteria. The rules governing penalties, extension dates, and interest differ by state. Some states like Alabama, Wisconsin, or California automatically provide six-month extensions to all taxpayers. At the same time, other states like New York require citizens to fill out a form on or before the original due date of their return.
So, to avoid confusion, you must check the website of your state’s revenue department to learn how much time you have to file for a tax extension 2023.
Keep Checking Tax Extension Status
You may be looking for how to file tax extensions and even have found the answer, but the next thing that arrives is whether IRS has accepted your request or not. If you sent Form 4868 to the IRS by online means, then most probably, you will receive an email within 24 hours after submission. If you have applied through the mail, you should contact the Internal Revenue Service (IRS) to inquire about the extension status for mail applications. When you apply for a separate state tax extension, then you should keep track of the confirmation status by contacting the state tax authority.
What are the Reasons Behind Tax Extension Rejection?
Most of the time, your request for an extension for taxes is approved. However, some tax extension forms are denied even if they are filed before the deadline. You will receive an IRS notification upon request denial.
The following are the most common reasons:
- Out-of-date information that does not correspond to IRS records
- Misspellings and incorrect figures.
There is no need to worry, as the IRS provides a window of five days during which you can correct the mistakes and resubmit them.
If the IRS disagrees with your tax liability projections statistics, then also your request for an extension will be denied. Moreover, you may even face a penalty.
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Frequently Asked Questions
What is the deadline for filing income tax returns?
The income tax filing deadline for 2022 taxes is April 18, 2023. If you have requested an extension on tax filing, then the deadline is October 16, 2023.
Which form do I need to fill out for an extension if I reside outside the USA?
If you live outside the United States, you may be eligible for a tax extension by submitting IRS Form 2350.
How much do you have to pay as a penalty if you fail to pay after the extension?
The failure-to-pay penalty is 0.5% of the total taxes owed for each month you do not pay. The penalty eventually reaches a maximum of 25% of the unpaid tax bill. It won’t go beyond 25%.
Does a tax extension require if you owe a refund from IRS?
When you are overpaying your taxes, you will probably be receiving a refund. If you expect to get money back on your taxes, you don’t need to file a return or get an extension.
Is it possible to file a tax extension electronically for free?
You can use the IRS Free File program to file for tax extension electronically. However, it is applicable only if your adjusted gross income (AGI) is less than the annual threshold. On the other hand, higher-income taxpayers can use IRS Free Fillable Forms to request an extension.