It is not uncommon for a taxpayer to fall behind on their due tax payment and tax returns filed. April 15th marks the annual time limit for taxpayers to have their taxes paid and federal income tax returns filed. The IRS is lawfully enabled to assess penalties for taxpayers who fail to pay their taxes and file their tax returns within the set deadline. One can however, avoid these repercussions by filing an extension request to the Internal Revenue Service through Form 4868. No explanation is needed as to why you need the extension, thus you do not have to go through the trouble of convincing the IRS of the why. Usually the filing deadline upon request and approval is extended from April 15th to the 15th of October.
In the event that you are late on your tax return filing and payment you can take advantage by filing for an extension to avoid certain consequences. Here is how you can take advantage of IRS late filing by filing for an extension.
Improve the Accuracy of Your Tax Returns
Accuracy is a very important factor, especially when dealing with tax money. To avoid losing money through faulty tax returns that attract penalties and fines the taxpayer needs to provide precise tax information. Filing for an extension for late filing to the IRS allows the taxpayer more time to organize their tax information before filing them. This reduces chances for error and helps to ensure completion and accurate filing of tax returns, which is less likely happen while rushing to beat the deadline.
Get Extra Time to Make Elections on Your Tax Returns
Tax return filing requires the submission of various information which can be time consuming and sometimes complex. Consequently, decisions need to be made which should help avoid putting the taxpayer in jeopardy in terms of wrongly filed returns which can be penalized or even lead to federal tax repercussions such as charges on tax evasion. With this in mind the taxpayer may need a little more time to seek professional assistance or file the return themselves. Filing for an extension from the IRS allows the taxpayer to make the right tax return decisions and file accurate tax returns.
Reduce Your Tax Preparation Fees
Taxpayers who seek professional assistance after the April 15th deadline often meet accountants or tax resolution experts that increase their charges. However, filing for an extension on late returns allows the taxpayer to save money by shifting tax preparations to after the deadline when the workload and pressure has dropped. These accountants will probably have less work during the slow spring and summer months hence charge lesser fees for their professional assistance.
Preserve Your Tax Refunds
When you file for an extension on late filing of tax returns the refund statute of limitations also extends by six months. For some taxpayers the lateness might even extend for a few years, which the IRS accounts for with a three year deadline for granting refund checks to deserving taxpayers which begins on April 15th as the original deadline date. By filing for an extension on late filing the taxpayer can therefore maintain their ability to receive tax refunds from the IRS.
If you have any tax questions or concerns, call the attorneys at Ayar Law for free, no-obligation tax advice 800.571.7175