With all the information available on tax extensions, it is easy to think that you may know everything about them. Companies like FileLater.com have been helping Americans get tax extensions for many years, and they are also helping to debunk certain myths in the process. It is important to separate fact from fiction before you apply for an income tax extension.
What You Should Know About Tax Extensions
First of all, the IRS does not care if you file an extension. The first common misconception is that the IRS will think it is suspicious if you are applying for a tax extension. This is simply not the case. The IRS will grant a tax extension to anyone, as long as you have filled out the application form completely and on time. That is why FileLater’s service is designed to make the extension process quick and easy. We will also make sure your application is complete before it’s submitted.
A second common misconception is the notion that you will need to hire an accountant to help you with filing a tax extension application. But this is simply not true. With FileLater, you can file an extension in less than 10 minutes. The extension application is broken down into a few easy steps, plus we have a built-in tax liability calculator to help you with the numbers.
In order to file a tax extension, you must provide some basic personal information (including your name, address, and Social Security Number). Then you’ll need to give an estimate of your tax liability (the total tax you owe for the year, minus any tax payments that you’ve already made). Next, you decide whether you want to make a tax payment with your extension application. If you owe taxes, making a payment with your extension is recommended, but not required. After you review your information and click “Submit,” our system will immediately transmit your tax extension to the IRS. As soon as the IRS responds, we will send you a notification email.
The third misconception that you may have heard is that you will have to wait until October to file your taxes. That is also not true. In fact, you can file your return before April 15 if you want. A tax extension does not force you to delay your filing – it just gives you extra time in case you need it.
The fourth misconception is that you will be audited if you apply for a tax extension. However, the IRS does not look down on taxpayers who file extensions (which is why it’s so easy to get one). There will be no extra scrutiny on your tax return just because you’ve filed an extension. On the contrary, a tax extension could actually make you less likely to be audited. This is speculated by many tax professionals because the IRS usually fills its audit quota by the end of April.
Tax Extensions Get More Popular Each Year
The fifth common misconception about filing for a tax extension is that no one does it. But in reality, over 12 million taxpayers filed extensions last year. Our business is evidence that the popularity of tax extensions is growing. For years, thousands of people have been using our services to e-file an extension, and over 97% of people who file extensions with us are IRS approved.
There are no downsides to filing a tax extension. Why not get one this year to give you peace of mind?