Life can be hard, and you may find yourself in the situation where you need to file for an extension with the IRS. Don’t worry, filing for an extension is easy with DIY Tax!
Wouldn’t it be nice if there was an easy way to file for a tax extension if you need more time to file beyond April 15th? Now you can file an extension for any reason, electronically, and for free. Although, if you miss filing by the April 15th deadline without an extension, you’ll need to pay the piper (a.k.a. the late fees – we’ll cover those in a bit).
Filing a tax extension has its benefits, and below are a few reasons why you may want an extension:
- More time to gather documents or receive new ones if mistakes were made
- Get professional advice on a difficult tax situation
- Your life is busy and you just need more time
- You’ll be out of town during tax season and you need more time
If you find yourself in the situation where you need to file for an extension, access the My Account page and simply click the button that says “File an Extension.” We’ll walk you through the process, and help you submit your extension electronically. Easy as that. And free.
Now that your extension’s filed, you may be wondering what’s next? You have until October 15th of the current year to file your return as normal, and without penalty. If you miss the October 15th deadline, you will be subject to the IRS’s penalties:
- Failure-to-file penalty – 5% of the unpaid taxes for each month or part of a month that the return is late. However, there is a cap of 25%.
- Failure-to-pay penalty - .5% of the unpaid taxes for each month or part of a month that the return is late. Again, there is a cap of 25%.
- Both may apply – If this is the case, don’t fret. If both apply for a month, the maximum penalty remains at 5%.
- 60-day Rule – If your return is late by 60 days or more, you’ll have a penalty of at least $135 or 100% of the unpaid tax amount – whichever is smaller.
- Oh, and Interest, too – On top of all of those penalties and numbers, there’s still interest on the penalized amount.
Now you may be saying, “Hey, I don’t owe anything. I’m due a refund. What do I have to pay if I file late?” Well, if you owe nothing or are due a refund, there may not be a penalty for filing late. But remember, doing this means you’re leaving your hard earned money on the table and that can cost you potential earned interest.
Life’s hard enough, taxes shouldn’t be. Just like sharing this tax-hacking goodness with your friends and family by using the Share buttons below, or you can Like us on Facebook and follow us on Twitter to get more articles like this posted directly to your timeline or newsfeed!