There are many reasons to request an extension for filing income tax returns by the IRS. The important news is that you no need to provide any particular reason for filing a 4868 extension. When you submit the IRS 4868 tax form extension to the IRS, it is reviewed and the IRS grants you an automatic 6-month extension to file your personal income taxes.
Usually, all federal income tax returns are due on April 15th or the first business day. Yet, if the tax filer needs some time to file the tax returns, the IRS grants the tax filer an automatic 6- month extension to file your taxes every year when the concerned tax filer completes Form 4868. You cannot file tax returns for many reasons and the IRS understands the situation of every tax filer. The most common reasons for submitting the extension request include a lack of organization, medical emergencies, unexpected business events, or tax planning issues. Though you E-file Form 4869 and obtain the extension, you must pay the income tax in full before the April due date.
Reasons to file Form 4868 Tax Extension
Let us discuss some of the common reasons to file the personal tax extension Form 4868
Correcting incomplete tax documentation:
However, the federal government grants the filers an extension to whoever files Form 4868 extension. The tax filers can take advantage of this extra time to correct the filings and ensure that the return is accurate. For instance, when an employee lost his or her W2 that is sent to the employer and waiting for the duplicate to arrive, it is better to file a Form 4868 extension. With an estimated income, you will have to make corrections in the future.
Unanticipated Life Events:
Sometimes life events also interfere with the ability to file, even though you intend to file the tax return by the due deadline. When you have a death in your family or a victim of a natural disaster, you may be unable to file the return on time. As a victim of some unexpected events, you can apply for an extension, and you no need to rush if other issues keep you from focusing.
Conversions of IRA:
At times consuming some extra time to file the return will be a strategic move and it can help in obtaining more tax savings. For instance, when you are converting a traditional IRA to a Roth IRA, you need to pay the tax for the entire account balance while converting. Nevertheless, the IRS permits the tax filer to characterize the Roth IRA back to a traditional IRA before the taxpayer files their tax return at any time. This allows the tax filer to avoid paying tax on the balance. As this conversion takes some time to process, filing an extension can eradicate the obligation to pay the tax.
Penalties for Late Payment:
If the tax filer does not pay the 4868 taxes that who owes to the IRS before filing the deadline, the IRS penalties can be severe regardless of when the tax filer files the tax return. The charges of the IRS are huge, and the taxpayer must pay one-half percent each month on the amount of tax that the tax filer owes after the deadline.
If taxpayer fails to file a 4868 tax return by the extension due date, then the penalty of the IRS increases to 5% per month, for a maximum penalty of 25 %. A better way to avoid the penalty is to make the payment before the filing deadline through your debit card. While you pick this payment option, it serves as your extension application and you no need to file the Form 4868.
Need Help to Filing Tax Extension with Us
When you are stuck with your busy work schedule, want to ensure the correctness of the Form and you need time to complete all those things, and then can e-file your Form 4868 online through Tax2efile easily. For this no need to specify any particular reasons, you can file the 4868 Form and submit to the IRS. If you struck anywhere while filing Form 4868 then connect with our customer support team via email us email@example.com or call us at 703.229.0326 or live chat.