Yes, today is April 18…the national deadline to file your taxes. The Internal Revenue Service allows “last minute” or “late” taxpayers to file a six-month extension if they need more time to prepare their tax return. The IRS grants an extension to anyone – and for any reason – if the proper form is completed on time. State tax laws do vary, so check your state’s requirements. Here’s the benefit to filing an extension courtesy of Turbo Tax: Filing a tax extension is free, easy and automatic: Just submit Form 4868 electronically or on paper by the April filing deadline. TurboTax Easy Extension makes it easy. Not only will you gain six months to file, you’ll relieve the stress that often accompanies trying to pull everything together by tax time. 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. You’ll also avoid failure-to-file penalties, which can add up to 25% of the tax due. If you file an extension but miss the extended deadline, you will be subject to this penalty. 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 April deadline. An extension will allow you to take advantage of retroactive changes to the tax law that might be made after the April deadline, without the added time and expense of filing an amendment. 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. 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.
