Blue Pearl is the team of choice here for any El Paso Bookkeeping and Tax Service. What is a Tax Extension? The IRS grants you an automatic six-month extension to file your taxes every year, as long as you complete Form 4868, this is something commonly used here in El Paso, TX. Traditionally, federal tax returns are due on April 15 or the first business day thereafter. This is a simple informational note.
Can I file for an extension if I owe taxes?
You must have a completed file for an extension by the April 17 deadline. An extension will give you extra time to get your paperwork to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest on any amount not paid by the deadline, plus you may owe penalties.
This is important! A filed extension does not extend your time to pay any owed taxes.
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What are the first steps I need to take to get a tax extension?
As with anything financial, it’s always best to take action as soon as you can. When it comes to taxes, there is a time limit for requesting a tax extension, so you must be aware of your personal situation in order to determine if you need an extension of time to file.
“If you are already feeling like you may need an extension to file or could have difficulty paying the amount owed in April, it’s best to act early,” says Niall Wells, CFO of Planwise, an online budgeting tool. “Prepare yourself mentally by taking some time to understand your situation, seek the advice of a professional or contact the IRS.”
Once you have decided that you want to request a tax extension, you will need to choose a method for requesting an extension.
There are currently three ways you can get a tax extension:
1. Electronically file (e-file) Tax Form 4868 online
2. File a paper Tax Form 4868 by mail
3. Your local El Paso Bookkeeping and tax service will help with filing and setting up for you to pay all or part of your income tax due (what you expect to owe) with your credit card or debit card using the Electronic Federal Tax Payment System (EFTPS)
It’s recommended that you read the instructions for Tax Extension Form 4868 before filing to make sure you understand the details of the form.
So, what if you’re ready? What now? Remember that a tax extension gives you more time to file your income tax return documents, not more time to pay what you owe for the year which means that you still need to file all the associated paperwork in time for it get to the IRS and get filed by them.
- You need to file on time, even if you cannot pay.
- Use the IRS Free File system to request an extension.
- You can authorize payments to the IRS using the electronic funds withdrawal from your checking or savings account.
If you have any questions about your El Paso Bookkeeping and Tax Service, please don’t hesitate to contact me directly at (915) 996-3981 or email me your questions at tax@bluepearltax.com
