Tag Archives: Extension for Tax

Things You Should Be Aware Of, When You Want to File For a Tax Extension

No matter what your motive is behind filing an extension to file your taxes, as long as you fill-out the form (Form 4868 for individuals, Tax Form 7004 for businesses) correctly, you are automatically granted with an extension time of 6 months for your request. Remember that the IRS doesn’t care (and doesn’t ask) why you’re filing for a tax extension. But before getting into the actual filing of extension tax in order to acquire more time to file your taxes, here are some important points to take note of.

1. Do Not File Extension, If You Can’t Pay.

In case you have completed your return but unable to pay in full to the IRS, you should file your return first hand and then later apply for an Online Payment Agreement (OPA) based on the bill or notice sent by the IRS for the balance due.

2. Supplementary Span in Hand

The comfort of extension is applicable only for filing and so, you cannot extend time to pay your taxes. You will owe interest on any amount not paid by the deadline, plus you may owe penalties.

3. Extension Forms

You can submit your request for extension via Form 4868 (Application for Automatic Extension of Time to File U.S. Individual Income Tax Return), Form 7004 (Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns) or Form 8868 (Application for Extension of Time to File an Exempt Organization Return).

4. Extension via E-file

If you would like to relax your tax related filing tension during extension, you have a great chance with e-filing the same. Extension Tax does it for you and checks your form for mistakes to ensure smooth submissions. Notifications for you will also be on time once the IRS approves your extension, which again is matter of minutes with internet filing. Note that it is always good to be aware of internet scams and taking care of your personal information.

5. Electronic Funds Withdrawal

If you ask for an online extension, you can also choose to pay any expected balance due by authorizing an electronic funds withdrawal from a checking or savings account. You will need the appropriate bank routing and account numbers.

6. Form Availability

The IRS website has downloadable forms for filing extensions. Well, you can even order for one at 800-TAX-FORM (800-829-3676). But downloading forms from the website, taking print out of it, understanding the nuances of tax in it, filling the details all by yourself, going in person to file it or sending it to the IRS via courier, dealing with errors and rejections due to silly or major mistakes, filing it again with uncertainty is all just like reading this very line that you have just read. Too lengthy and complex. Also, Telephone requests normally take 7 – 15 days to process and ship. It is immediately available full time and also for easy filing on extensiontax.com.

So, it is always a wiser idea to opt for e-filing your extension tax forms in comparison to paper filing any form that too through  extensiontax.com. It’s because filing an extension on extensiontax.com doesn’t make you wait one extra moment in just the minutes of time it consumes to prepare and process your extension request.

Four Tax Tips about Tip Income

If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes. Here are four things the IRS wants you to know about tip income:

  1. Tips are taxable. Tips are subject to federal income, Social Security and Medicare taxes. The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to tax.
  2. Include tips on your tax return. You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip–splitting arrangement with fellow employees.
  3. Report tips to your employer. If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
  4. Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.

For more information see IRS Publication 531, Reporting Tip Income and Publication 1244 which are available at http://www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676)

What to do if you’re missing a W-2…

It’s that time of year again — time to file your tax return. Before you start, make sure you have all your documents at hand, particularly your Form W-2, Wage and Tax Statement. By Jan 31, you should have received a Form W-2 from each of your employers. It’s always a good idea to keep copies of all pay statements in case you need to refer to them when filing your taxes.
If you haven’t received your Form W-2 by Jan. 31, follow these three steps:

1. Contact your employer/s – Contact your employer to inquire when it was made available or mailed. If it was mailed, it may have been returned because of an incorrect address. After contacting the employer, allow a reasonable amount of time for them to resend or make it available to you. Continue reading

Starting in 2011, Many Paid Preparers Must e-File Federal Income Tax Returns for Individuals, Estates and Trusts

WASHINGTON — The Internal Revenue Service today detailed how, starting Jan. 1, 2011, paid tax return preparers can comply with a new law that requires paid tax return preparers who meet the definition of “specified tax return preparer” under the new law to electronically file (e-file) federal income tax returns that they prepare and file for individuals, trusts and estates.

The e-file requirement will be phased in over two years.

Starting Jan. 1, 2011, paid preparers who prepare income tax returns for individuals, trusts and estates, such as Forms 1040, 1040A, 1040EZ, and Forms 1041, and who reasonably expect to file 100 or more of these income tax returns in 2011 are specified tax return preparers required to file these returns electronically.

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Happy Thanksgiving from ExtensionTax.com

Special Thanksgiving Wishes from ThinkTrade, Inc. you have a wonderful Thanksgiving with your family!! and friends!!!

Ah! On Thanksgiving day… We would like to sincerely thank our Customers, Truckers and everyone we serve for all of your support this year. The year 2010 has been a wonderful year and we could not have done it without all your support.

You have a wonderful Thanksgiving with your family!! and friends!!! Happy Holidays!!!

Treat yourself this Holiday! efile your Excise Tax forms [Form 2290, Form 8849 and Form 720] and win iPod Touch.  read more @ http://www.TaxExcise.com/holiday2010/