No one is perfect when it comes to getting things done on time. That is why some people need to receive an extension on their taxes.
Reasons why someone might need an extension:
1. Sometimes personal life events can prevent someone from paying taxes on time. For example, a death in the family or an extreme illness can cause some financial setbacks. This is well understood, and an extension will be granted to you (in many cases).
2. Incomplete tax documentation can also pump the brakes on your tax payments. If you lose your W-2 form or simply need more time to properly fill out your documentation, the time will be granted to you.
3. Late payment penalties arise if you do not pay the tax you owe by the original tax filing deadline. This can cause much bigger issues for you in the long run by involving the IRA. The IRS charges one-half percent each month on the amount of tax you still owe after the deadline.
When to file taxes when you receive an extension:
Finally, if you end up needing an extension for any number of reasons, how long is the extension? Federal tax returns are generally due on April 15th, but with the extension, they are not due until October 15th. This means you have 6 months to recover from illness or any other financial hit that may have prevented you from filing your taxes on time.
Whether you owe money to the IRS or you have a State tax debt, our staff of Enrolled Agents and Tax Professionals can help you! We have over 50 years of experience negotiating with the IRS in all 50 States.
Call The Tax Defense Group today!