Time to start working with your Income Tax Extension Application

The tax reporting for the tax year 2019 is in full swing, IRS started accepting the tax returns already. The deadline to file a 2019 tax return and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the April 15 tax deadline. When you’re not ready with your tax return, IRS encourages you to file Extension Applications to buy more time to report the taxes. Extension of time is only to report the taxes and not to pay the taxes that you owe. Income taxpayers both Individuals and Businesses can file applications for automatic extension of time that will push the actual deadline from April 15 to October 15. However the deadline for Extension of time application is also falls on the actual deadline, that is April 15th. For certain businesses the due date falls on March 16th (the actual deadline March 15th falls on a weekend, so the next business day March 16th falls as the new due date).

“The IRS workforce has worked for nearly a year to prepare for the opening of tax season,” said IRS Commissioner Chuck Rettig. “Our dedicated employees are committed to help taxpayers, process tax returns and serve the nation − not just through the April 15 tax deadline but throughout the year.”

The IRS expects about 90 percent of individuals to file their returns electronically. Filing electronically and choosing direct deposit remains the fastest and safest way to file an accurate income tax return and receive a refund.

“The IRS reminds taxpayers there are many options to get help,” Rettig said. “Our website has around the clock information available and is the fastest way to get assistance. We’ve made improvements to the Free File program and filing electronically with direct deposit remains the best way to speed refunds and minimize errors. As always, experts in the nation’s tax professional community stand ready to help people navigate their tax issues. And we also remind people our IRS-trained community volunteers are ready to help file tax returns in locations across the country.”

Tax Extension Applications Online:

The Automatic Federal Tax Extension applications for Individuals and businesses can be reported online at http://ExtensionTax.com, an IRS Authorized eFile service provider and a product of ThinkTrade Inc.

Tax Extension Form 4868 and Form 2350 :

Form 4868 is known as the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. When you complete the form, the IRS will automatically grant you a 6-month tax extension. That means you’ll have until October to file your federal income tax return (the October deadline for your 2019 tax return is October 15, 2020).

Even if the IRS receives your 4868 tax form by the tax deadline, you’re still expected to pay any taxes you owe by April 15, 2020. If you can’t make your tax payment on time, you may have to pay a penalty plus interest. But as long as you pay at least 90% of your tax bill by the April filing deadline, you’ll be able to avoid the late-payment penalty altogether.

At ExtensionTax.com you can report this Individual Income Tax Extension Form 4868 in 3 simple steps and get it approved in just minutes. Easy to use and robust application to prepare your Extension of Tax applications online.

Form 2350 is only to be used when you need additional time to file your return in order to qualify for the special tax treatment using the bonafide residence test or the physical presence test.  Form 4868 is the regular extension form that is used in all other cases.  

You only really need to use Form 2350 if you won’t be able to qualify using the physical presence test using one of the other extension methods – either automatic 2 month extension for taxpayers outside of the country or using Form 4868.

So, if you already qualify for the exclusion based on one of the testing methods (or if you will within 6 months), then you can just file a regular extension (Form 4868).  You don’t have to use Form 2350 in this case.  If you needed more time than the 6 months, then you would need to use Form 2350.

Tax Extension Form 7004 and Form 8868 :

Depending on the type of business you run, the IRS will allow for five- or six-month extension period, starting from the original due date on the tax return. So, if a business obtains a six-month extension and its original filing deadline was March 15, the new due date will be September 15.

Form 7004, is used to file application for an automatic extension of time for a Partnership, a multiple member LLC filing as a partnership, or a Corporation, or a S-Corporation. If you are not ready with your business income tax return documents, and looking forward for an extra time to get them in place, eFiling Form 7004 can save you from heavy penalties and interest.

Most companies should use Form 7004 to apply for an extension. An exception is for sole proprietors. A sole proprietor doesn’t file a business tax return — all information is reported on their personal tax return. If an extension is needed, a personal tax extension can be requested with IRS Form 4868.

Tax extensions do not give you more time to pay your taxes – it only gives you more time to file your tax return. If you owe taxes for the year, you are still expected to pay by the original due dates — often those due dates are either March 15 or April 15 (depending on your type of business). You will be charged IRS penalties and interest charges if you pay your taxes after the original due date. So, you should pay your taxes with your extension to avoid late fees.
File on time.

The due date to submit your Form 7004 for your extension application is on or before the due date of your tax return. This deadline will vary depending on the type of business you run.

Form 8868 Application for Automatic Extension of Time To File an Exempt Organization Return, is for not for profits, charities, and other tax-exempt groups applying for a 6-month filing extension. An exempt organization is allowed a total extension of 6 months for a return for a tax year. Automatic 6- month can be electronically filed. However, you cannot file Form 8868 electronically if you want the additional (not automatic) 3-month extension or you are filing extension request for Forms 990-BL, 6069, or 8870, group returns, or a composite or consolidated Form 990-T.

Extension Application with ExtensionTax.com:

We’re the leaders in Federal Excise Tax online reporting and started supporting Federal Extension Applications since 2010 to make it more affordable and economic for our excise users and now we’re support many individuals and businesses to report the federal extension application online. Electronic filing provides fast acknowledgement that the IRS has received the return and reduces normal processing time, making compliance with reporting and disclosure of requirements easier. Electronically through http://ExtensionTax.com an IRS Authorized e-File Provider at just $14.99. Simple steps and clear work flow to complete the return faster and receive back an acknowledgement quicker.

We have a dedicated team of support agents to help you through your extension application and address any questions that come-up in the process of efiling. Reach us at 866 – 245 – 3918 or write to us at support@extensiontax.com.