With the deadline for tax filing coming up very shortly, you may be panicking that you don’t have enough time to file your return. Whatever the circumstances, you do have an option that will give you more time. You can file an extension that will shift your due date from April 18 to October 17. Consider working with a tax service in Des Moines, IA to file the correct paperwork to ensure you get the extra time you need.
Why file an extension?
If you need more time to get your taxes together, you can file an extension that will push your tax filing deadline ahead by six months. The benefit of filing for an extension is that you can avoid filing late and accruing late filing penalties. These penalties rack up fast, with you accruing five percent of the amount due for each month you are late. By filing an extension, you eliminate the penalty and get an extra six months to prepare your taxes for filing.
While you will have an extension to file your tax paperwork, you will not have an extension of the money that you owe, if you owe. With your extension, you will have to estimate the amount of money that you owe and pay it. A tax service in Des Moines, IA can help you figure out the amount that you owe. Remember this has to be done by April 18.
To file your extension, you will need to complete IRS Form 4868. A tax service in Des Moines, IA can help you fill this information out and file your extension on time. On Form 4868, you can estimate how much you are expected to owe and send your payment to the IRS.
Failing to get an extension
If you don’t ask for an extension and you don’t owe money, there is no penalty for filing late. While the penalty for filing late is a percentage of the tax owed, if you don’t owe any tax, there is no penalty to pay. If you are getting a refund, you may want to file as soon as possible so you can also get your money back as soon as possible. This will also start the clock on the statute of limitations for the IRS to audit you, which begins as soon as you file.
If you owe taxes to the IRS and you fail to file an extension with 100 percent of the tax you owe, you will be charged a penalty of 0.5 percent per month until the tax is paid. While the maximum penalty is 25 percent of the tax owed, add the additional interest to the amount and it will really add up fast.
Be sure to work with a tax service in Des Moines, IA to ensure you don’t get into this situation. They will be able to file you an extension and work out the correct tax payment plan. Contact Accounting & Tax Professionals, PLC to file your tax extension. We offer a full range of personal and business tax and financial services, as well as considerable peace of mind.