If you wonder what it’s all about filing an extension, it’s really a simple process. Your income tax returns will normally due on April of every year, but applying for a 6-month automatic extension allows you more time to file. This extended deadline for the tax return is October 15 now, but only for individuals and C-corporations who applied using IRS Form 4868. This extended deadline applies only if you filed or e-filed a tax extension by April 15, 2019. Before filing your tax it is important to educate yourself about the tax situation to avoid complications later.
Does IRS Reject Your Tax Extension Application?
The tax extension request might be rejected under certain circumstances for the following common reasons.
- Misspelling, errors in numbers or other errors on the extension form
- Out of date information provided in the extension form
IRS will notify through email or letter if extension request is rejected. Such instances, IRS will provide five days of time to fix the issues, and correct the errors in order to file again.
The tax extension has several advantages. It is easy to get the extension for your tax filing. Here are some of the benefits of filing for an extension.
- Having more time to file your taxes will make the process to complete without feeling stressed
- The chances of making errors will get low with this extended time
- If you are looking for a tax professional to handle your tax audit, this extended time will be helpful to find the right tax attorney for your needs
If any taxpayers fails to file the tax returns even by Oct 15 due date, you will be subjected to IRS penalties and interests. Here’s how the IRS penalties could add up:
Penalty for non-filing: If you don’t file the taxes, for every month the penalty will be 5% monthly of the net tax due.
Penalty for non-payment: If you don’t pay your taxes, for every month the penalty will be 0.5% monthly of the net tax due.
The penalty for failure to file tax returns is more than failure to pay the taxes itself. Act immediately and file your taxes on or before Oct 15 2019.
IRS Repayment Plans
For those who are unable to pay taxes on time, the IRS is offering different repayment options for the tax payers.
Full-payment agreement: You can apply for this payment option if you are able to pay your entire tax debt within 120 days. You will get the IRS notification once you applied whether your payment option is approved.
Installment agreement: Sometimes you may not be eligible to pay the full tax debt in 12 months. Certain times you can choose this option for the repayment. The main advantage of this option is avoiding accruing additional interest and penalties.
Offer in compromise: This repayment option may allow you to pay less than you owe only if you meet certain qualifications. IRS will consider taxpayers unique set of facts and circumstances for approving this option. This option is not for everyone. Before approving this repayment option IRS will check your ability to pay, income, expenses and asset equity.
If you’re struggling to complete your tax return, don’t hesitate to seek a tax professional’s assistance that can help you get it completed properly and on time. IRS Audit Group specializes in tax audit representation can help you facilitate your tax filing process. Our Tax attorneys, CPA’s and enrolled agents are able to offer options that best fits your case to reduce any tax debt, eliminate disputes etc. Contact Us Now for Free Consultation:-
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