Tax Extension Form 4868 and 7004 get you an Extension of Time for tax filing

Why do you need a Tax Extension Form? 

Are you the kind of person who is always late? A procrastinator? You knew for the past year that on  April 15, 2011 (actually April 18, 2011 - to be explained later) your tax return for 2010 taxes is due. However, you can’t get  your information together on time. You can’t  find all of your tax documents or maybe you can’t make it to your accountant’s office on time, or maybe he/she has no time left for you at this late date. Well you’re in luck. The IRS is ready for people like you. They are expecting that people will be late and they have a very easy way for you to deal with it.

Can everyone get an extension of time to file?

You may request more time to file your 2010 tax return by filling out a tax extension form. It’s called a Form 4868. It is used to file a federal tax extension. Form 4868 is also used by certain states to file for a state tax extension.

Tax Extension Facts

You must file your tax extension form by April 18,2011. The deadline has been pushed off this year from April 15 to April 18 due to Emancipation Day which falls this year on Friday April 15,2011. It is a holiday observed in the District of Columbia. Since April 16th and April 17th
are on the weekend the deadline for filing taxes this year is Monday April 18. If you are still late even though you have an extra 3 days this year then you can fill out a tax extension form and will have until October 18, 2011 to file your tax return. But don’t procrastinate because if you are filing a personal tax return you will not be given any further extensions.
If you owe money then you have to send an estimated payment with your tax extension form or you will have to pay interest and penalties for late payment. So even though you can wait to file your tax return for another six months, you’re not completely off the hook. I guess if there was no catch then everyone would just file a tax extension form and the government would be broke for another six months. Then again, considering the amount of the national debt, will your $100 or $1000 that you owe really help the government very much?  I doubt it! But, those are the rules. And I’m sure that no one wants to give Uncle Sam one extra penny in interest or penalties.

There is a late filing penalty if you file after the due date of April 18,2011. The penalty is 5% of the amount due for each month that your return is late. The maximum penalty is 25%. If your return is more than 60 days late then the minimum penalty is $135 or the balance of the tax due on the return, whichever is less. The IRS wants to show that is human though, so if you have a valid reason for filing late then you should write a letter and attach it to your late tax return. But if that is the case then do not fill out the tax extension form 4868. Don’t get too excited though , who knows what the IRS considers a “valid reason”.