Q: Tax Playa, what are the extension deadlines for filing taxes and how do I qualify?
Morgan, Washington DC
A: Filing an extension is an easy process, and one that millions of taxpayers use every year. Generally, extensions are for six months past the due date of the return...
It is very, very important to note that an extension gives the taxpayer more time to file, not to pay. Your taxes should be paid up by the end of the preceding tax year.
Individuals can get an automatic six-month extension to file by submitting Form 4868. There used to be a two-step process, but this has been simplified. The 4868 extends the tax filing deadline to October 15th (or later if April 15th fell on a weekend). An estimated tax payment may be made with the extension filing.
Taxpayers can file for an extension of time to pay because of "undue hardship," but this is rarely-granted. Much more often, taxpayers can request to pay any balance due in installments. The IRS will charge interest and a setup fee, and some tax must be paid up front.
Businesses can also get an extension to file, though not to pay. Most businesses can file a Form 7004 and get a 6 month extension that way. Keep in mind that corporate and exempt returns are due on March 15, so the extension deadline is only until September 15th.
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