If you’re having trouble preparing your federal tax return, a tax extension may be the best option. An IRS extension allows you to file your taxes six months after the due date. However, you must make sure that you have all the tax documents required in order to file your return. You will also need to pay your taxes by July 15th.
Filing an extended tax return has several benefits. One benefit is that you can file a more accurate return because you will have more time to gather and organize your tax records. Also, you will have more time to support your deductions if you’re filing a complex return. In addition, filing an extension will prevent you from needing to make last-minute amendments, which will trigger an audit.
While filing an extension can put off paying your taxes until a later date, you must also make sure that you pay your taxes on time. If you are filing your return late, you will be assessed interest and a late payment penalty. You could also miss out on an election that will improve your tax status. To avoid paying penalties and interest, you can make your payments early using an online payment portal.
The deadline for filing an extended tax return varies for different types of businesses. For example, an S corporation tax return is due on September 15, while a partnership’s is due on December 31. However, a sole proprietorship or a single-member limited liability company that has a December 31 year-end is required to file an extension on the third day of the month. In addition, a sole proprietorship filing under the name of an individual will need to file a Schedule C along with its Form 1040.
The IRS provides guidelines for filing an extension. The form used to file an extension is Form 4868 for small business owners, while Form 7004 is for individual filers. Using the correct form is crucial. An extension will not be granted unless you meet certain criteria. This includes a tax ID number and a Social Security number.
If you are eligible, you can e-file an extension for up to three years. It will allow you to file your return until October 17, 2022. In the meantime, you can pay your taxes on time, but you may have to pay late filing and penalties. The penalties for late filing are higher than for late payments.
The IRS website has more information and a step-by-step process for filing your Extended Tax Return. The IRS website also has helpful information on how to use an e-filing service. This is a more convenient and secure option than using paper forms. If you want to file your Extended Tax Return online, you can find a service that allows you to file your return in minutes.