One of our many tax services is filing tax extensions for those who cannot file before the deadline. Many reasons exist, such as you do not have all documentation ready. In these and other cases, we will show you how to file a tax extension.
1. What is a Tax Extension?
As it sounds, a tax extension is a request to file your taxes later than the April deadline. The extension is generally for six months. However, even a successful filing of a tax extension does not mean you do not have to pay if you owe. However, this can be a beneficial course of action, especially if you believe more time will help you reduce your tax liability.
2. How to File a Tax Extension?
Filing a tax extension all begins with IRS Form 4868. There are three ways to request the extension:
- You may pay part or the entirety of the tax due while sowing the payment is for a tax extension using a credit or debit card, Direct Pay, or the IRS’s Electronic Federal Tax Payment System.
- The form may be filed electronically using e-file via tax professional software.
- You may file a paper form via mail with payment enclosed.
We recommend using the first or second option, as issues can arise when using the mailing system during tax time.
Filling out Form 4868 is fairly easy. You only need your name, address, SSN, and spouse information. However, you also need to know an accurate estimate of your total tax liability for the year before, as well as any payments you have made. The two numbers can tell you how much to pay as you file the extension. But it can be difficult to gather this data without all your information. Feel free to use the services of a professional tax consultant in order to get this number.
3. What to Look for After You File
The first thing to do is make sure you pay. Keep a constant look out on the account you used to pay your taxes and make sure the funds are collected. Remember, it is better to pay too much than too little as you don’t want to get hit with fees, interest, etc.
There are also special rules for those who live outside the country. You may receive an extra two months on your extension or if you are a military member who lives in a combat zone. This federal extension does not apply to any state or local taxes you may owe. Check with each agency to see what their policy, if any, is on tax extensions.
Get a Houston Tax Services to File a Tax Extension
Still confused? Do you or your business in the Houston area need more time to file taxes? Feel free to contact us to see if you can utilize the services of our bookkeeper, accountant, and tax specialist.