Yes, the federal income tax deadline 2013 just around the corner, but many of us not ready yet to file tax return on time. To avoid late tax filling which will end with IRS penalty you only have 2 choices, file return on time or get a tax extension. Now the 1 million big question is how to file an extension for 2012 taxes? Well it’s not that hard, you have 2 options to do that, using the old-school forms method or using online tax extension service.
For the first option you can use the IRS extension form 2013, just download, complete the form and send it, once approved you will get 6 months plenty more extended time until October 15 2013 to file income tax return. Is that easy? Well yes, but remember the deadline to file form 4868 (the federal tax extension form) is the same as tax filing deadline which is 15 April this year. a friendly suggestion, use the certified mail with return receipt requested. With this type of mail service, it provides proof that you mailed your extension and proof that the IRS received the form.
But for a fast & better option, you may want to file form 4868 electronically. Uhm.. did you say electronically? Is that mean I can file a tax extension online? Well yes, with this hassle free method you just need to complete 3 simple steps and no more than few minutes until your extension approved and get the confirmation the email. And if your application rejected (mostly all rejections are caused by a name and social security number not matching the IRS records, caused by misspellings, typos, change of name, etc) you can always fix the problem and re-submit the application. Wasn’t that so easy? Yes the the proses is quick and easy that is why the IRS calls it an “Automatic Extension”.
As a great addition, I’m listing a few more online tax extension services, yes there are always alternatives for everything, especially free ones. My only favor is please consider to share this info, as many of your friends and relatives will also benefit from this. Thank you very much..
What is the penalty for filing taxes late
If you fail to file your returns on time or fail to get an extension on it and/or fail to pay taxes you’ll owe, then most likely you will fall in these situation.
Fail to File Penalty
The failure-to-file penalty is 5% of the tax due as shown on the tax return for each month the tax return is late, up to a total maximum penalty of 25%. It calculated based on the time from the deadline of your tax return (including extensions) to the date you actually filed your tax return. Multiply your balance due by 25% if your tax return is more than five months late.
Fail to Pay Penalty
The failure-to-pay penalty is 0.5% for each month the tax is not paid in full based on the amount of tax you owe, calculated from the original payment deadline (the original April 15th payment deadline) until the balance due is paid in full. And there is no maximum limit to this penalty.
Interest is calculated based on how much tax you owe and every three months the interest rates change. The IRS interest rate for underpayment of tax is 3% per year as for now. The interest is calculated for each day your balance due (the original April 15th payment deadline) is not paid in full.
So what are you waiting for? My friendly suggestion for you if you’re not ready to file your federal income tax return is to file irs extension online. Because conveniently fast & easy and if something happens you can fix it quickly.