There are those who have complicated taxes that are way and above the norm. Sometimes getting the tax papers filed by April 15th is not going to happen. The IRS offers the option to file a six month extension to avoid being penalized for non-filing. Unfortunately, the extension does not apply to balances owed.
The Different Options for Filing An Extension
The correct form to obtain extra time for your income tax is 4868, available at www.irs.gov. Keep in mind that all or a portion of the estimated tax is due at the time of filing the extension. This applies across the board to all of the options given.
- E-file the form. The form can be electronically submitted through approved E-file sites or through you tax professional. Payment can be made either through an electronic funds transfer or mailing in a check. When mailing a check, be sure to put the tax year and form number. For example, write "2010 Form 4868" in the memo line. Use a completed copy of the form as a voucher.
- Pay all or part of the amount by debit or credit card. Call one of the service providers that are listed in the publication for form 4868 then follow the prompts to make a payment. Have last years tax return at hand so the adjusted gross income can be provided for verification. A fee is assessed for the service and if you do not want to pay the fee, you can chose to cancel the process. If you do go finish filing over the phone, you will receive a confirmation number for the extension.
- File a paper form. Fill out the form and mail it in to the IRS office that is listed for your area. Enclose a check for the payment amount of your choice.
Full or Partial Payment
If at all possible, pay the full amount. Otherwise interest will start accruing and a late payment penalty may be assessed. Pay as much as you can in the case that you cannot pay the entire balance. This will minimize the amount of interest that will accumulate. The IRS offers payment plans if you feel that you can handle a monthly installment.
Consult a Tax Attorney
Finding yourself in a tight tax situation adds unnecessary stress to your life. At the very least, talk to a tax lawyer about filing your income tax extension and keeping an eye on its status. Furthermore, consider hiring them to prevent yourself from needing to file an extension in the first place.
