Tracy’s Tax Tips: Filing an Extension

Your due date to file your Federal tax returns is less than a month away, but what if that’s not enough time? ?You can buy yourself a few months, but you better act quick.

FOX Business Network’s Tracy Byrnes has all you need to know in another of Tracy’s Tax Tips:

If you can’t get your tax return completed by April 15th, then just file for an automatic extension.

I’m Tracy Byrnes with the FOX Business Network, here with Tracy’s Tax Tips.

Now, remember, you have to file SOMETHING to the IRS by April 15th to avoid that whopping Failure to File penalty – which actually equals 5% per month on any Federal income taxes due. ?That means the IRS is basically going to charge you $50 per month on every $1,000 of taxes owed – as of April 15th – if you don’t file your tax return or an extension by the due date.

That’s awful, so file an extension and that will automatically push the tax return due date off until October 15th. ?Your favorite tax preparation software will walk you through it, or you can print out Form 4868, which is the Application for an Extension of Time to File at IRS.gov.

Big note, though: This is NOT an extension to pay. ?You have to pay your tax bill with your extension, so send in your payment with your extension, and then you can relax a bit until your return is due in the fall.