12/24/2022 0 Comments How long is the 2016 tax extension![]() After you file an extension, if you owe taxes when you file your return, you might also have to pay penalties and interest on the tax due. An extension gives you extra time to file, but not extra time to pay. "Inability to pay is the worst reason to file an extension," warns Cole. Many people file for an extension because they owe taxes and are unable to pay them. While the IRS does not disclose its process for selecting returns for audit, the earlier a return is filed, the longer it is in the system and thus subject to a review. Additionally, some tax professionals theorize that filing an extension will decrease your odds of being audited, since IRS auditors must meet quotas and try to do so early in the year. Keep in mind that filing an extension when you owe taxes only gives you more time to file, not more time to pay-your payment is still due at the tax filing deadline.Īn extension will allow you to take advantage of retroactive changes to the tax law that might be made after the filing deadline, without the added time and expense of filing an amendment. If you file an extension but miss the extended deadline, you will be subject to this penalty. ![]() You'll also avoid failure-to-file penalties, which can add up to 25% of the tax due. More time and less stress means you'll be able to thoroughly review your return and ensure you're taking advantage of all the tax benefits available to you. ![]() Not only will you extend the filing deadline until October 15, you'll relieve the stress that often accompanies trying to pull everything together by tax time. Filing a tax extension is free, easy and automatic: Just submit Form 4868 electronically or on paper by the filing deadline. ![]()
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