Some years a taxpayer simply needs more time to file. There are many reasons why you may not be able to meet the tax return deadline, ranging from the mundane to the tragic. The IRS understands this, and this is why it offers the extended deadline for those who request it. But, how should you go about requesting one? This page will help you file an IRS extension for individual and business tax returns.
How Individuals File an IRS ExtensionTo file an IRS extension for personal taxes, you need to fill out a Form 4868. You can either mail this to the appropriate IRS address or e-file it. Whichever method you choose, you need to send it before the April deadline. Enter the following information on your Form 4868.
- Line 1 - Your name and address.
- Line 2 -Your Social Security Number.
- Line 3 - Your spouse's Social Security Number, if filing jointly.
- Line 4 - Your tax liability estimate.
- Line 5 - Your total payments made toward 2011.
- Line 6 - The balance due after subtracting Line 5 from Line 4.
- Line 7 - The amount you are sending with your Form 4868.
- Line 8 - Check only if you are currently out of the country.
- Line 9 - Check only if you intend to file a 1040NR or 1040NR-EZ & had nothing withheld.
After filling that all out, you need to send at least 90% of what you estimate your tax debt to be to avoid a Failure to Pay penalty. This is an extension to file. If you need an extension to pay, you should fill out a Form 1127. When you file an IRS extension for individual taxes, you have until October 15th to file your return.
How Businesses File an IRS ExtensionTo file an IRS extension for a business, you will need a Form 7004. You have the same submission choices as you do with the Form 4868. You will need to have this form filed before the original tax return due date. This date is different for each type of business entity. You will need to know the following information to fill out your Form 7004.
- What type of tax return you intend to file for your business.
- What type of business entity (corporation, LLC, etc.).
- How long your business' tax year is.
- An estimate of your business' total tax debt.
- The business' total payments and credits.
When you file an IRS extension for business taxes, you usually have until October 1st to file your return. It is actually recommended that most businesses file an IRS extension to ensure that they have enough time to manage all of their complicated paperwork. There is no penalty if you file an IRS extension, but still have your business tax return ready before the original due date.
How to File an IRS Extension for Special SituationsIf you are a United States citizen or resident and are out of the country when your tax return is due, you actually are granted an automatic 2-month extension. As long as you attach a statement about your situation to your tax return, you do not even need to file an IRS extension form.
If you are serving our country in a Combat Zone when tax returns are due, you have at least 180 days after you leave the area to file your returns. Again, there is no need to file an IRS extension form. However, you will have to show that you were either in a Combat Zone, a Contingency Operation, or hospitalized due to an injury received in either of those situations. Combat Zones currently recognized by the IRS are Kosovo, the Persian Gulf, and Afghanistan. Sometimes, the IRS hasn't been informed that a taxpayer was in a Combat Zone and Substitute for Returns are filed. As long as the taxpayer communicates this special situation, the IRS will work with him or her.
Do you need help to file an IRS extension? Consult a professional. Call now or fill out the form below for a free tax debt consultation on how to file an IRS extension and if it will help you! We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.