The Internal Revenue Service (IRS) reminds taxpayers that if they cannot file their return before the April 18 deadline this year, they have an online option to get an automatic six-month extension to meet their tax obligations.
An extension allows more time to collect, prepare, and file paperwork with the IRS ; however, taxpayers should know that:
– An extension to file their return does not give them an extension to pay their taxes
– Taxes due should be estimated and paid before their regular due date to help avoid potential penalties
– You must file your extension no later than your regular return due date
To electronically file an extension form for free, filers can use IRS Free File. You can use the Form 4868, which extends the deadline until October 17 to submit your tax return. To obtain the extension, taxpayers must estimate their tax liability on this form and must promptly pay any amount due.
Other fast, free, and easy ways to get an extension include using IRS Direct Pay, the Electronic Federal Tax Payment System, or paying with a credit or debit card or digital wallet. It is not necessary to submit a separate Form 4868 extension request when making an electronic payment and indicating that it is for an extension. The IRS will automatically count it as an extension.
The IRS reminds taxpayers that an extension request provides additional time to file a tax return, but not additional time to pay taxes due.
The IRS encourages taxpayers to file even if they cannot pay the full amount. By filing a return on time or requesting an extension before the April 18 filing deadline, you will avoid the late filing penalty, which can be times more expensive than the fine for not paying.
Taxpayers who pay as much as they can before the due date reduce the total amount subject to penalties and interest. The interest rate is currently 4% per year, while the late filing penalty is generally 5% per month and the late payment penalty is normally 0.5% per month.
For more detailed information you can consult here.
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