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A delay in paying taxes is a common thing experienced by a multitude of people. But when you know the intricacies of applying for a tax extension online you can feel yourself quite relieved from the worries. Getting a federal tax extension is not at all a cumbersome job if you have detailed knowhow about the process pertaining to it. There are a few basic things that needs clarification. Here are the details of tax extension and how to apply for it in simple steps.
What is tax extension and how it helps?
Let us start with the basic. Tax extension is nothing but getting additional time to pay your taxes. As per the federal regulation you can get up to a 6 month period to file your taxes after being granted the extension. From a tax payer’s point of view, it saves him from being tax defaulter and from the administrative point of view, it helps the orderly realization of government taxes in due time. In simple term to express it offers the relief to the average tax payer by granting additional filing time and helps reducing the number of defaulter cases.
Steps in applying for tax extension to file your tax returns
It is extremely easy and convenient to apply for a tax extension and obtain it. You only need proper knowhow about the procedure. Though it is never recommended to apply for tax extension on a regular basis in each year, it can be needed at any point of time. Nevertheless, in the hour of need, it saves you time and anxiety over filing the tax in due time. Here we provide the whole process of applying for tax extension in simple and easy steps.
1. Determine your tax figure
Whether you need to pay extra taxes or need to apply for a refund is to be determined first. Applying to get a refund is much easier as you do not need additional time at all. Owing additional taxes you have to obtain extra time and make the arrangement of excess sum.
2. Obtain an IRS tax form
As for applying for your federal taxes you need to obtain an IRS tax form. You can get the form online and print at your convenience. Filling this single page form and submitting it you can an extension for filing your taxes up to 6 months. Online filing of tax extension is much more convenient and will save much of your energy and time.
3. Filing the tax form
You can fill up the tax form (http://www.wisegeek.com/what-is-a-tax-return.htm) online in electronic form or fill up the paper form and mail it by postal service. Online filing would be much easier and less time consuming as you would get the help of automatic tax calculator. Moreover, with electronic fund transfer facility, it is much easier to pay your taxes directly from your bank account. Moreover, while filing federal taxes online, you get an email confirmation from the IRS as soon as the application is received. While the application is approved, you will be notified by email again. Tax payers who apply manually by sending paper mail do not get this privilege of being confirmed by email.
4. Checking the tax extension application status
You can always check the application status online by regularly updated records of the IRS. Online status check saves you from concern over your tax extension and due date.
5. Pay the taxes by the due date
Once your tax extension application is approved, the new due date would be 6 months later, precisely on October 15th. You can pay your taxes at any time prior to this date or on this date but not beyond it.
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