Tax Extensions

Preparing and filing tax returns is never fun, but paying your federal income taxes to the IRS can be stressful and even financially challenging in some cases. While the April 15th tax filing deadline is a date that may be etched into your mind, the fact is that you can request an extension of time to file if necessary, and a skilled and experienced CPA can assist you with filing the proper paperwork with the IRS.

Extensions may be filed for personal returns or business returns. In many--if not most--cases, an extension may be necessary due to business related issues. Maybe you are waiting on a piece of information from another entity, preventing you from being able to file your tax return. If filing a tax extension for your individual income tax return, you would need to fill out form 4868. If you are filing an extension for a corporation, partnership, REMIC, or certain types of trusts, you would need to fill out form 7004.

When you request an extension of time to file with the IRS, you should be aware that this is a short-term extension. The request for an extension must be paid by the tax filing deadline, and a second extension may be granted by the IRS in some cases. This essentially provides you with more time to gather together your tax documents for your Idaho Falls tax preparation in order to have your accountant prepare the taxes and more. There are times when the days simply fly by, and the filing date may have approached more quickly than you realized. In other cases, major life events like the loss of a job, a divorce, or other circumstances may have consumed all of your attention.

Some individuals who need additional time to pay taxes may believe that an extension of time to file is an extension of time to pay taxes, but this is not the case. If you owe taxes to the IRS and you request an extension to file, you will be responsible for interest owed on the amount due. If you are able to file now and need extra time to pay, you can speak with your CPA about other options. For example, you can request a payment plan through the IRS. This way, you can begin making regular payments to the IRS, and this may decrease the total amount of interest that you pay on your tax bill.

There are many reasons why you may not be ready or able to file your tax return by the tax deadline. When you speak with your CPA about your circumstances, you can learn more about the options available to you to file and pay your taxes.