How to Apply for a Tax Extension in 5 Steps

A good filing and payment record can always earn you rewards from the IRS such as short-term administrative extension of 120 days on tax payments. Thus, if you are not able to file your tax returns well before April 15, an IRS tax extension is a great choice to make to keep your tax filing records clean. It is a provision provided by the IRS itself to help taxpayers who had genuine reasons for not filing their tax returns by time. Nonetheless IRS doesn’t ask any reasons for tax extension and it is really easy, which can be done within a few minutes if done the right way.

However, do remember that this extension is only for filing your tax returns and not an extension on the payment of your tax dues. April 15 is the last date to apply for an extension and for failing to do so, one must pay a minimum of 5% to a maximum of 25% of the balance tax dues. So how to apply for a tax extension? Read on to know.

• Individuals must fill out the tax extension form 4868 and businesses have to go with the form 7004. These forms are available for free download on the IRS website and also e-filing provider websites. If you are not so tech savvy, you can also request the form from the IRS via post.
• E-filing provider websites are an easy way to file tax extension forms online. These providers are IRS authorized and are allowed to submit your extension forms to the IRS on your behalf. It wouldn’t take more than 5 minutes to fill these forms out and send them over to IRS online.
• E-filing best answers the question how to apply for a tax extension since it comes with so many advantages. It doesn’t just let taxpayers file online within minutes, but the taxpayers who e-file their extension forms get a confirmation mail on their approval unlike those who filed via post.
• Another reason to go with e-filing is IRS considers e-filing more than any other filing methods and generally taxpayers who file online are likely to get tax refunds more easily than the people who filed via post.

There is no such thing as difficulty when it comes to applying for an extension. As long as you know how to apply for a tax extension and don’t make any mistakes or provide any incorrect information, there is no way your plea for time extension will be denied. All you have to do is follow the above mentioned steps if you don’t know how to apply for a tax extension.

This Article was written by Marcus Cherep. Visit our site at Survivingtaxes and for more details.

I'm an freelance copywriter and I write on a variety of topics.