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| You Don't Have to File Your Tax Return by April 15: Ask for More Time |
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Do you know that you don't have to file your tax return with the IRS by mid-April each year. The IRS will obligingly move this deadline back for you by six months. All that is required is you have to do is ask them .
Up until 2005, it used to be that you could request a second extension of time to file your income tax return with the IRS. Not anymore, but that's not as bad as it sounds. The amount of extra time you get works out to be just the same as it was back in the old days, but now you only have to ask once rather than twice. You don't have to keep in your mind to go back and tap the IRS on the shoulder a second time.
The Old Procedure
As per the old extension proceedure in place through 2004, you could request an automatic four-month extension, followed by a second extension of two months. Form 2688 was used to request the second extension, but that's scrapped now and not in use .
Any request for an automatic extension of time will grant you the same extra six months to file your taxes, but this is your only chance to ask for a bit of a reprieve.
Deadline for filing 2020 personal tax return is July 15, 2020, due to COVID-19.
What Happens When You File an Extension?
Filing an extension is one of the easier tax challenges you'll come across . However before you do it, you should clealy realise what it does and what it doesn't do. You can file Form 4868 to get the additional six months all at once.
While you file Form 4868, the new deadline to file a tax return will be October 15, 2020. But—and this is a big but—tax payments for the 2019 tax year are still due by July 15, 2020. An extension doesn't give you any extra time to pay. The IRS will charge interest and sometimes even penalties on tax payments made after July 15.
Here's How to File
Make a draft of your tax return. Do not file it. You want to know as to whether you expect a refund this year or you might owe taxes.
If you use tax preparation software, these programs will almost invariably e-file Form 4868 for you, usually without any charges. Fill out, and ensure its done so before midnight on the deadline day. It can take from five to 20 minutes to file the extension online, so give yourself more than adequate time to finish before midnight.
Here's a list of mailing addresses for sending Form 4868 to the IRS if you want to submit it the , nice old way. If you don't electronically file the form with tax preparation software, your extension must be postmarked on or before the July 15, 2019 deadline.
It's often a very good idea to send the extension form by certified mail with a return receipt requested. This receipt gives you with enough proof that you did indeed mail your extension request and when you did so, as well as proof that the IRS received the form.
Here's How to Pay
If you are supposed to pay taxes, mail a check with the extension form. If you don't owe taxes, mail only the form, you are free to go to the IRS Direct Pay website and submit it there if you file Form 4868 online. There are many software providers are set up to help you to pay by direct debit from your bank account when you file the extension form.
Americans Living Out of the Country
Americans living in other countries may sometimes make a request for additional time to file beyond the six-month extension to October 15, but they must file an additional form. Request the first extension with Form 4868, then file Form 2350. This form requests additional time to file Form 1040, so you can qualify for special tax treatment. The IRS explains this special procedure and the circumstances under which it can be useful.
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