Tax Extension Application in 2023

Since tax season has officially here, many taxpayers have started the time-consuming process of submitting their taxes and going over their list of required tax paperwork. There are solutions accessible by obtaining a tax extension to allow yourself further time even though the deadline for submitting taxes is just a few weeks away. You can request a tax extension to extend your deadline for filing your taxes. In this manner, a late filing fine is avoided.

Both state and federal tax extensions are available for filing. Here is information on how to file for both federal and state tax extensions in 2023.

What Form You Should Use?

You can submit IRS Form 4868 to request a federal tax extension if, for any reason, you are unable to file federal taxes by the due date (April 18, 2023). You’ll have an additional six months to file your federal tax return if you use Form 4868. Any excuse may be used to request a tax extension, and filling out the form won’t take long.

There are two parts to Form 4868. You will enter your information in the first section of the form by:

  • Name
  • Address
  • Social Security Number, and, if applicable, the Social Security number of the spouse.

You’ll give an estimate of your final taxes in the second section of the form. After deducting all of your tax payments for the year, you can calculate this. You must use Form 4868 to make the remaining payment if you anticipate having to pay taxes.

How to Request a Tax Extension Online

Online filing is the first method available for requesting a tax extension. You can electronically file your tax extension form thanks to the IRS’s approval of Free File for individual taxpayers.

If you decide to submit an online request for a tax extension:

  • Since the IRS notes, “If October 16 falls on a Saturday, Sunday, or legal holiday, the due date is deferred to the next business day,” you have until October 16th, 2023 to file your return.
  • Your request for an extension must be submitted before the regular deadline for filing your tax return.
  • To avoid penalties, you should estimate any taxes that are due and pay them by the due date.

How to Request a Tax Extension Via Mail

A request for a tax extension may also be sent by mail. There are three ways to mail a request for Form 4868:

  • To obtain a form, contact the IRS by phone.
  • The second choice is to fill out an order form on the IRS website and ask to have a printed form addressed to you.
  • Form 4868 copies can be available at local libraries or post offices.
  • The prerequisites for submitting an extension request via mail are the same as those for submitting one online.

Extensions for Tax Filings Do Not Prolong Payment Deadlines

It’s important to remember that while you can request an extension, you cannot extend the payment date.

Even if Form 4868 is used to request an extension, you must still send the projected balance due. Less interest and penalties will accrue if you pay more, and you might even get a refund when you file your tax return.

You can transmit payments electronically on either the IRS or the state website if you file for tax extensions online. You can mail payments along with your filled-out Form 4868 if you request an extension via mail.

Extensions for State Taxes

You can be eligible for state tax extensions in addition to federal tax extensions. You will receive a six-month extension as a result of these requests, which are open to all taxpayers. Depending on your state, you might need to fill out a form before the deadline for filing your state tax return.

Similar to federal tax returns, asking for a state tax extension does not move the deadline. State tax extension filing rules vary per state, which may have an impact on how you pay state taxes:

  • Some states automatically extend state tax deadlines based on federal extensions. Your request for a extension may need to be accompanied by Form 4868.
  • If you apply for a federal extension and don’t owe any taxes, several states will grant you a state extension.
  • In some states, if the majority of the tax bill is paid by April 18, federal extensions are accepted as legitimate state extensions.
  • To avoid fines, taxpayers may be subject to payment requirements for their tax bills.
  • In some jurisdictions, taxpayers who are not automatically granted a federal extension must submit a state form.
  • You won’t need to file a state tax return if you reside in a state without a state income tax. Additionally, you won’t need to request an extension on your state tax return.

How Can You Tell If Your Request Has Been Accepted?

The approval procedure follows the submission of your request for a federal tax extension. Normally, the approval procedure runs automatically, but you must correctly complete Form 4868. If you don’t make sure that your information is accurate, your request could be turned down.

How you submit Form 4868 will determine how you’ll get your clearance. You will get an email with a confirmation if you request a tax extension online and you’ll get it within a day. You won’t get an email if you file your tax extension request by mail. Instead, you’ll get in touch with the IRS to make sure it got your request for an extension.

Is Filing a Tax Extension Punishable?

To avoid an IRS late filing penalty, you should submit your request for an extension if you need one on or before the April 18 filing date.

You could question if there will be a tax extension penalty if you submit for tax extensions. Although you won’t be penalized for requesting a tax extension, you still have to file your taxes by the federal and state deadlines.

You will incur late payment fees if you don’t pay the taxes on time. Penalties for underpaying or not paying at all may also apply.

You Can Get Help from Your Part Time Accountant Tax Experts

You still have time to submit a federal tax extension or a state tax extension while tax season continues. Tax professionals are available to aid you should you need assistance with requesting a tax extension or learning how to file small business taxes. Before the deadline approaches, get the assistance you require by calling the tax professionals at Your Part Time Accountant.