While having 3 additional days to file taxes (April 18th, 2016 as released by the IRS back in December, or the 19th if you are a resident of Maine or Massachusetts) may be wonderful news to some, others need more time to file. You can request an extension from the IRS – this would need to be submitted before the April 18th deadline.
The IRS has moved this extension request process to an online format (form 4868, Application for Automatic Extension of Time). While some file their own taxes, some just want someone else to worry about the details. That’s where we come in.
The IRS wrote a “Need more time to file your taxes?” article with helpful tips. Remember, however, that an extension to file is just that, an extension TO FILE until October 17th…not an extension to pay what is owed!
You will want to estimate and pay what you owe by April 18 to avoid potential late filing penalties. Know that you will be charged interest on any tax you don’t pay on time.
We get asked at our offices O’Hare and Associates CPAs and Tax Debt Assistance if extensions can be denied. It’s really rare to get denied an extension. If this does happen, then you have to file immediately and have to pay anything owed immediately. The IRS has Direct Pay, which is a free and secure way to pay directly from your checking or savings account.
Remember, there is no extension to pay taxes…only an extension to file.
If you owe the IRS more than you can pay, you can negotiate an installment plan. This will require another form to be submitted (form 9465, Installment Agreement Request). Without a tax resolution expert, the IRS determines what you can afford, which is not always what you can actually afford. A tax resolution professional can negotiate on your behalf – they look at more factors than the IRS might.
We strongly recommend having professional representation when dealing with the IRS, whether you are current with your taxes or have found yourself owing back taxes. You will want to look for a CPA, Certified Public Accountant, if you are current; and if you owe back taxes you will want a CTRS, Certified Tax Resolution Specialist to help you negotiate. The higher the tax debt, the greater the complexity, and you need an expert to represent you to negotiate the best plan possible.
If you are looking for leniency from the IRS, know that Congress is making the IRS do more with less money these days, so the IRS is no longer going to be a nice IRS. They are responsible for getting money for the government – leniency is not part of the equation.
The benefit of an extension to file is that it slows the refund process for the IRS (if you have one coming), and it allows you more time to file, however, if you owe, you will get hit with penalties and late fees. You will want to estimate and pay what you owe by April 18 to avoid potential late filing penalties.
We invite you to contact one of our New England Offices for a free consultation.
We are CPAs and tax debt solutions experts serving individuals and businesses in the New England states, including Connecticut, Maine, New Hampshire, Massachusetts, Rhode Island, and Vermont. O
Call us: (855) 479-2400
Please note: Maine and Massachusetts have until April 19th due to the Patriots Day holiday.