Not everyone is ready for tax season, some years can be rougher than others. That’s why tax extensions exist, and they are a great move by you if done right. It’s easy to extend your filing period, simply send in a completed Form 4868 � Application for Automatic Extension of Time to File.
This year if you filed an extension prior to April 18, 2017, you now have until October 16, 2017. The deadline may still seem far off, but time flies by fast and sooner than later that deadline will come up. If you haven’t gotten started on your tax returns yet, here’s a few tips to push you to file your tax returns.
Get Help with Filing Your Taxes
Filing your taxes can be stressful, especially when you don’t have everything ready. This includes not having all the documents required to complete a tax return. If so, use your extension time wisely to contact your employers throughout last year and other entities that owe you information.
Keep in mind that failure-to-file penalty is more than failure-to-pay penalty. Filing on time will help reduce the amount of interest and penalties that will stack, and will help you find payment options in time before the deadline hits.
If you haven’t already, seek out a tax professional to help you with your return.
Note � If you don’t owe taxes, usually there are no penalties for filing late. That is because penalties derive from the amount you owe. The only hit you take is that you won’t get your coming refund until you file.
What to Do with Your Tax Extension
Finish Up As Soon as Possible
Understand that a tax extension extends only the amount of time you have to file your taxes, it does not extend the time you have to pay. This makes it all the more important to get your tax return done as soon as possible.