How and Why to Request a Tax Extension from the IRS

Getting close to that April 15 deadline for filing your taxes with the IRS? No need to panic just yet. Request a tax extension from the IRS to avoid penalties from filing late. The IRS recommends an electronic request be sent by the April 15 deadline. If you are getting close to the file date, it may be a good idea to file for a tax extension request, just in case. This way you don't have to worry quite as much as that last tax day draws nearer.

How to Request a Tax Extension From the IRS
For those taxpayers who can gain access to a computer, filing a tax extension with the IRS is not only simple, but also is free of charge through the IRS FreeFile service. All users need to do is log onto the IRS website and fill in Form 4868, Automatic Extension of Time to File. The form can then be sent to the IRS electronically, rather than by mail. This is the quickest way to file the form and is likely the best way when very close to the deadline.

It's important to note that filing Form 4868 does not give taxpayers more time to pay their taxes. It simply gives them more time to file taxes for the previous year. The filing extension is valid for six months time from the April 15 tax deadline, which gives taxpayers until October 15 to file their taxes. Be sure not to lose track of time once the extension is filed. Pay close attention to that new deadline of October 15.

Possible Reasons to Request a Tax Extension From the IRS
Some might request a tax extension to go over their taxes more accurately and be sure they have filled in everything correctly. Others may be gathering information specific to their tax situation and run out of time before they have everything. If receipts and other records are not organized during the year, it may take some time to gather them before filing taxes.

Filing a tax extension simply gives taxpayers more time to complete their taxes accurately and efficiently. Those who are self-employed may benefit from the extra time to be sure they haven't forgotten any important records and business deductions that need to be included. The National Spending Journal blog explored the possibility of tax extensions decreasing the chances of getting audited. It is unknown whether there is sufficient evidence to support this, but it certainly is an interesting consideration.

SOURCES

http://www.irs.gov/irs/article/0,,id=206233,00.html?portlet=7

http://blog.shoeboxed.com/tax-extensions-do-they-increase-your-chances-of-being-audited/1078/