We can avoid penalties associated with tax filling by taking action in time. The general option is to seek another date for tax filing. The benefit of seeking an extension is that it can improve the accuracy of your tax return. Tax extension time is essential if you are still preparing your tax documents to be organized. In fact, the deadline for filing the 2018 tax returns was April 15, 2019. However, by filing IRS Form 4868, individual people and businesses may extend the tax filing deadline to six months i.e. September 15, 2019. Now, the Tax filing due date has been extended up to Oct 15, 2019.
But getting an extension doesn’t offer you more time to pay — it only provides you more time to file return. Here are the common reasons why you might need to push your deadline back:
- You may need more time to track down your missing documents
- Any unexpected life event or
- Your busy life
Filing for a tax extension is simple, free and automatic. Just submit Form 4868 electronically or on paper before the original filing deadline. But if you fail to submit your tax return by the updated Tax filing due date, there are chances that you may end up paying higher penalties.
What happens if you miss October 15, extended tax filing due date?
Now, if you miss October 15 Tax filing due date for tax filing, you will not get any refund that IRS owe. Moreover, the IRS will deduct any interest and penalty you owed from the refund. If you wish to receive the refund you are entitled to, the necessary returns need to be filed in time. The IRS will compile a substitute return, and then notify you how much tax you owe to the federal government. The IRS will begin the collection activity against you once it compiles and notify you about the substitute return. These may include the collection and seizure of your property, including:
- Bank account
- Retirement savings
- Real estate
- Secondary car or home
- Life insurance policies
IRS will notify you in writing a mail about the seizure or levy of your assets through US Postal service once they find that you failed in complying with the Tax filing due date. You will be getting 30 days’ time to convey the intention or resolve your debt in order to avoid it. If you want to protect the assets that you own you should not ignore the written notice from the IRS.
Individuals or corporations sometimes file for an extension because they owe taxes, but they are unable to pay them. This is the worst reason for applying for a tax extension. IRS will offer some payment plans if you can’t pay the tax return instead of filing an extension. IRS also offers some installment agreements for tax payers who are unable to pay the taxes when they are due.
IRS Fresh Start Program is available, if you are not able to pay the tax in one time, it will allow you to pay in installment. IRS may provide more options like settling the tax debt for a lower amount or allowing you extra time to file and pay. But this extension is mainly reserved for military personnel and taxpayers living abroad.
IRS Audit Group analyzes any individual or businesses’ tax situation and provides the payment options that best fit you and the IRS. If you receive any notice in mail from the IRS, contact a professional or tax attorney immediately to know your options. Our IRS Audit Group’s members are experts in tax audit representation services who can bring best solutions for your tax problems.
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