It’s been a long time since we really updated anything at ExtensionTax.com. However, it is time for a new update. We are going to talk about form 4868 and the consequences faced if you miss filing the tax return form 4868.
As you know, the last date for filing an extension for form 4868 is April 15th of the calendar year, and you get 6 months of extended time to file your return. Your return would not be counted late as long as you submit your income tax papers by October 15th.
The extended time is to get your paper work in place, not to pay your dues. When you are transmitting your extension form via ExtensionTax.com, you need to pay your dues to the IRS, and transmit your return to the IRS. However, IRS would not send you confirmation regarding accepting your extension; however, IRS would get in touch with you if the extension is rejected.
Before we drop into the penalties and interest, let’s touch the basics first.
What is Form 4868?
Form 4868 is an application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form is for individuals, looking forward for extension of time for 6 months from their filing date. If April 15th is the last date to file individual income tax return, 15th October will be the next extended due date.
While you are filing an extension, you are mandatory to pay 90% of the dues you owe while requesting for a new extension. Like we said before, there will be no notification sent across for the acceptance of the extension, however, if your payment is due or not appropriate as per the IRS books, your income tax extension would be rejected and you will be informed.
Penalties For Filing Late:
There is lot of difference between filing and paying. If you are falling under the scenario for filing your tax return by/after the due date, you are liable to file your return with penalties. The penalty is usually 5% of the amount due for each month or part of a month, your return is late. The maximum penalty applicable is 25%. However, if your return is late for more than 60 days, the minimum penalty is $135 or the balance of the tax due on your return, whichever is smaller.
Penalty for Late Payment:
According to IRS, the late payment penalty is ½ of 1% of any tax (other than estimated tax) will be charged if the tax is not paid by April 15, 2014. This applies to each month or part of the month the tax is unpaid. The maximum penalty applicable over your late payment is 25%.
This is pure out of luck and genuine reasons; your late payment penalty will no longer be liable on your tax return, if you show up a reasonable cause for not paying on time.
Do not attach the statement of form 4868. You should have a considerable reason for the period covered by this automatic extension if at least 90% of your actual 2013 tax liability is paid before the regular due date of your return through withholding, estimated tax payments, or payments made with Form 4868.
Applicable Interest:
It is mandatory to pay what you owe by the last date if you are qualified for automatic 2 months extension because you were outside the country. The interest would run until you pay your dues. No good reasons will work here, which speaks you need to pay your interest on your dues. When it comes to tax, IRS doesn’t entertain excuses. Therefore, it is better to file it on time and oblige IRS even before the due date slips out of our hand.
If you are filing your return and paying your dues online, ExtensionTax.com is the best portal to file your extension online with ease. You need to enter the estimated tax and pay your dues. Enjoy the simplest and user-friendly application available for your perusal at ExtensionTax.com. You don’t have to do anything harder, or let your brain work. We will do everything from scratch. You just need to provide us with details, and the rest we will take care.
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