Wednesday, April 13, 2016

Failed to file before April 15 ? Don't worry file for 6 months extension for free !!!!

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Failed to file before April 15!!!!!

The Internal Revenue Service today reminded taxpayers who are unable to file their tax returns on time that it’s easy to get more time to complete their return. In fact, it can even be done online.
This is the eighth in a series of IRS tips called the Tax Time Guide. These tips are designed to help taxpayers navigate common tax issues as this year’s tax deadline approaches. 

For taxpayers who haven’t yet filed their returns, the IRS has this advice: don’t panic. Taxpayers who need more time to complete their return can request an automatic six-month extension.
The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868. Filing this form gives taxpayers until Oct. 17 to file a tax return. To get the extension, taxpayers must estimate their tax liability on this form and should also pay any amount due.

Another quick and easy way to get an extension is to make an electronic payment, such as through IRS Direct Pay, and select Form 4868 to indicate that it is for an extension. Available anytime, Direct Pay offers individual taxpayers a free, secure way to quickly make a tax payment without having to write a check, buy a stamp or find a mailbox. No preregistration is required, and payments can be scheduled up to 30 days in advance. Anyone using this online tool receives instant confirmation that their payment has been submitted and they do not have to file a Form 4868.

Those enrolled in the Electronic Federal Tax Payment System (EFTPS) can get an extension by using this free system to make a payment online or by phone. Taxpayers can also get an extension by making a credit or debit card payment online or by phone, but fees charged by the card processor (not the IRS) apply.  

Besides Free File and electronic payments, taxpayers can choose to request an extension through a paid tax preparer, by using tax-preparation software or by filing a paper Form 4868, which can be downloaded from IRS.gov.

The IRS reminds taxpayers that a request for an extension provides extra time to file a tax return, but not extra time to pay any taxes owed. Payments are still due by the original deadline.
Taxpayers should file even if they can’t pay the full amount. By filing either a regular return or requesting an extension by the April 18 filing deadline (April 19 for residents of Maine and Massachusetts), they will avoid the late-filing penalty, which can be ten times as costly as the penalty for not paying. Taxpayers who pay as much as they can by the due date reduce the overall amount subject to penalty and interest charges.


The interest rate is currently four percent per year, compounded daily, the late filing penalty is generally five percent per month and the late-payment penalty is normally 0.5 percent per month.