Most are familiar with the tax deadline that takes place each year on April 15th. This is the date by which our personal taxes must be filed and paid if we owe the IRS. This has been the deadline for many years. Each year many Americans are unable to meet that deadline for one reason or another. It could be that they owe money to the IRS, but are unable to pay. It could be that they became busy with other activities and simply missed the deadline.
While there are some consequences for filing taxes late, there is good news. There are steps you can take to avoid these penalties. If you are having trouble meeting the April 15th deadline, you can submit for an extension. This will give you until October 15th to file your federal tax return.
It’s important to keep in mind that, if you owe taxes or expect to owe taxes, the deadline extension does not extend the amount of time you have to pay those taxes. They are technically still due as of April 15th. This is why most accountants advise those who are filing for an extension to still pay an estimate of the taxes they will owe. Unpaid taxes can and will incur penalties and fines the longer they go unpaid.
How to File an Extension
Many people who are planning on filing an extension will often work closely with an accountant to make sure everything goes smoothly. An accountant who is familiar with tax codes and laws will know exactly what to do to help minimize any interest or fees that might accrue.
Others have managed to file for an extension on their own. You can find Form 4868 online, which can be downloaded, printed or sometimes even completed online. If you make your estimated tax payment with a credit or debit card on or before April 15th, an extension is automatically granted. There is no need to complete Form 4868.
There are other special deadline extensions available for both military personnel and other U.S. citizens who may be living, working or serving outside of the country.
Working With an Accountant
These days, there are many different options for handling taxes on your own. Some people have found that using these services works fine. Others realize that the best way for them to stay on top of their taxes is to work with an accountant. This helps to alleviate stress and minimize penalties and fines from the IRS.
Are you behind on taxes or need a personal tax extension? Give Hacker Accounting a call and find out how we can help. 602-375-5251.