Filing a tax extension with the IRS is a great way to get some extra time for filing your personal taxes. It is important to understand that an extension does not in any way delay payments owed for taxes, however it will give you some additional time to gather the necessary documents and file your personal return without incurring any penalties or late fees. Let’s break down the basics of filing a tax extension with the IRS.

Deadlines and Penalties

The normal tax return deadlines for your personal tax return is April 18ths. However, with approval, this deadline can be extended until  October 16th. It is important to note that this extension is only for filing the paper work; penalties and interest still start accruing the day after the normal scheduled deadline if you owe money on your taxes. Additionally, interest rates on overdue taxes are higher this year due to laws that have been recently put in place.

Filing an Extension  

It is important to remember that while an approved tax extension will delay filing penalties up until 6 months after the normal deadline has passed, it does not exempt you from paying any taxes due on or before April 18th. Therefore it is always best practice to make payments on or before April 18th if you are expecting to owe money on your taxes when they are due – even if you’ve requested an extension from the IRS!

Again, just to be clear. Filing a tax extension with the IRS doesn’t mean you don’t have to pay any taxes due – but it does give you more time to file. Payments should still be made prior to April 18th regardless of whether or not you’ve filed an extension request since interest rates may begin accruing after this date regardless of whether or not your request was approved. All said and done, filing an IRS tax extension can be a great way for clients who need more time preparing their returns.

BFG Tax Help can help you determine if you owe anything before you file an extension and can even help with that process. Don’t wait until it is to late call us today!