Q&A

Can anyone request a tax extension?

Can anyone request a tax extension?

Individual tax filers, regardless of income, can use Free File to electronically request an automatic tax-filing extension. To get the extension, you must estimate your tax liability on this form and should also pay any amount due.

Do you need to file an extension if getting a refund?

If you are getting a refund: If you have a refund coming from the IRS—as about three out of four taxpayers do every year—then there is no penalty for failing to file your tax return by the deadline, even if you don’t ask for an extension. However, this might not be the case for state taxes.

Is there a penalty for filing a tax extension?

Filing a tax extension is not a bad thing. There is no penalty for filing an extension. However, not paying on time or enough, or failing to file altogether, may cost you. If you don’t pay the full amount you owe, the IRS will charge you interest on the unpaid balance until you pay the full amount.

When do you get an extension to file your tax return?

An extension is your way of asking the Internal Revenue Service for additional time to file your tax return. The IRS will automatically grant you an additional six months to file your return. An extension basically extends the filing deadline for personal tax returns from April 17 to October 15.

When is block extension scheme for tax Representatives?

Block Extension Scheme for Tax Representatives Block Extension Scheme for Lodgement of 2020/21 Tax Returns by Tax Representatives On 29 March 2021, the Commissioner of Inland Revenue issued a Circular Letter to advise tax representatives of details on the Block Extension Scheme for lodgement of 2020/21 tax returns.

What happens when you file a 2 month extension?

If you use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations qualify you for the extension. You’ll still have to pay interest on any tax not paid by the regular due date of your return.

What are the pros and cons of filing an extension?

An extension moves the filing deadline for personal tax returns from April 15 to Oct. 15. But is taking one a wise move? You might not have a choice under some circumstances, but there are both pros and cons. While an extension gives you extra time to file your return, it does not give you extra time to pay your tax.

How to file an extension for income tax?

Electronically file for an extension using Free File software About Form 2350, Application for Extension of Time To File U.S. Income Tax Return About Form 8892, Application for Automatic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax

How to file for an extension of time?

Form 2350, Application for Extension of Time to File U.S. Income Tax Return (For U.S. Citizens and Resident Aliens Abroad Who Expect To Qualify for Special Tax Treatment)

How to advise clients regarding tax extension filing?

With so much technology at our disposal, there are several options to communicate with clients. I can tell you this much: if you aren’t willing to change and adapt to new technologies, you will be left behind. No matter the age of your clients, they are all resourceful and use various technologies – and you should, too.

When is the deadline to file an extension?

E-file Your Extension Form for Free Individual tax filers, regardless of income, can use Free File to electronically request an automatic tax-filing extension. Filing this form gives you until October 15 to file a return.