What Should I Know about Tax Extension Form
Filing taxes is a duty of every citizen in the United States. It is a civic obligation. However, due to circumstances beyond ones control, many would not be ready to file their taxes before the deadline of April 15 and this is actually worrisome. In a bid to accommodate and make things a little more flexible, there became a need for an extension. This means that citizens will still have a second chance of filing taxes for the year, however, this must be done officially through the Tax extension form. This article will look at issues surrounding Tax Extension Form.
What's the Purpose of Tax Extension Form
With the arrival of the spring season, April 15 will be here before we know it. There are chances that many people will not be ready to file their tax return before the deadline. Due to this obvious fact, the Internal Revenue Service granted an automatic six months extension every year to ensure people file their taxes. This is the main purpose of the tax extension form. On completion of the IRS extension form, it allows an individual to officially request for an extension of time to file their tax returns. However, it is important to note that the tax extension form must be received by the IRS by the original filing deadline to be considered valid.
Which Tax Extension Form Should I Use?
There are many tax extension forms serving different purposes as can be seen below. However, it is important to know which one to use at any given situation and time.
1. IRS Form 2350- Application for Extension of Time to File U.S. Income Tax Return
You can only file use the IRS Form 2350 if you are a U.S. Citizens and Resident Aliens Abroad Who Expect To Qualify for Special Tax Treatment or in a situation where your tax home is a foreign country throughout your period of bona fide residence or physical presence whichever applies. Note that the extension given to you if successful will likely be to a date 30 days after the date in which you are expected to meet either the physical presence test or the bona fide residence test.
2. IRS Form 4768- Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes
This is only applicable if what you are paying is the U.S Estate taxes as an executor or someone other than the executor.
3.IRS Form 5558- Application for Extension of Time to File Certain Employee Plan Returns
You can only use the Form 5558 to apply for one time extension of time to file the form 5500 series which comprises the Annual report /return of employee benefit plan, Short form annual return/report of small employee benefit plan and the annual return of one participant retirement plan denoted as Form 5500, 5500-SF and 5500-EZ respectively.
4. IRS Form 8809- Application for Extension of Time to File Information Returns
You can only use the Form 8809 to request an additional extension of time to file only the forms shown in line 6 of the current tax year on the form. The forms could be the W-2, 1099, 1097, 5498 etc Once you require more time to file any of these forms, you can apply for an extension using the form 8809.
5. IRS Form 8868- Application for Extension of Time To File an Exempt Organization Return
This form is used by an exempt organization to request an automatic three months extension of time to file its return and also apply for an additional three months extension if the original three months extension was not enough time.
6.IRS Form 8892- Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax
The form 8892 can be used under the following situations. The first is to request an automatic 6 months extension of time to file form 709 if you are not applying for the extension of time to file the form 4868 or it can also be used to make a payment of gift tax when applying for extension of time to file form 709.
7. IRS Form 4868- Application of Automatic Extension of Time to file U.S Individual Income Tax Return
This is the proper and required tax form to use to file the extension of your individual income tax return and submit it to the Internal Revenue Service by April 15. Also note that you must also send payment for any due taxes. In addition, tax payers can also file for an online tax extension at appropriate website by electronically filling it. Web programs like the Wondershare PDFelement can help you fill the IRS Form 4868 electronically. You will need to estimate the total payments for the year that you expect to report on your income tax return. You are also expected to estimate your total liability for the year that you expect to report on your tax return.
Tips for Filing Tax Extension Form
- Filing for tax extension is not necessary if you are due for a task refund. There will not be any penalty for filing past the April 15th deadline expect you owe money to the Internal Revenue Service. However, it is advisable to fill your task return irrespective of this because the longer you wait to file, the longer your task return.
- Ensure that your personal information is completely accurate when filing the IRS Form 4868. In addition to this, do not forget to send payment for your estimated tax liability. It is unfortunate that may task payers fill out the form 4868 but always forget to remit the payment with it.
- In situations where you will need more than six months to file your tax return, then it is important to include a note with form 4868 that explanations your situation and requesting for an additional time to file. However, note that the IRS is strict on additional file time but special considerations may be given to taxpayers that live outside the country or for those serving in the military overseas. If this is considered, you may be given two more months to file which will put your tax return at December 15th.
- The first part of the IRS extension form is the identification part. You are required to enter your name and address in the order in which they will appear in your tax return form. If you want to file a joint tax return, then you have to include your spouse name. It is important to note that in cases where you have changed your name after the last file return, then it is advisable to report this development to the social security administration SSA before proceeding to file Form 4868. This will help you in avoiding delays in processing your tax extension request.
- Where you have changed your mail address after filing your last tax return, then it is important to notify the internal revenue service of the change with Form 8822. Note that simply showing the new address on your Form 4868 will not change your record.
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