If you are unable to file your taxes on time, you can file for an extension. Failing to file for an extension or filing on time will result in late fees, interest and other penalties. You can avoid many of these fees by filing an extension. However, when you file an extension on your tax return, your estimated taxes are still due in April. You must pay the taxes in April or face late fees and interest on the amount you owe.
Individuals can file IRS Form 4868 to receive a six-month extension. Taxes are usually due on April 15, making the new due date with the extension Oct. 15. However, the normal April 15 deadline is extended to April 18 in 2011 due to a contemporary holiday weekend. As a result, the new due date through an extension in 2011 is Oct. 17.
Video of the Day
Companies who cannot file their taxes on time can also file for an extension. Companies, including partnerships, can file IRS Form 7004 or Form 1138 to get an extension. The new due date varies by the type of company and the extension form utilized. Your new tax due date will be provided by the IRS.
If you also owe state taxes and are unable to file on time, you will need to contact the Department in Revenue in your state to find out how you can also get an extension for state taxes. Filing for an extension with the IRS for federal taxes may not also grant you a state tax extension. The new filing date may also be new for state taxes.
Special considerations regarding extensions apply if you live abroad or will be out of the country when the taxes are due again. For example, if you are abroad when taxes are due, you are allowed an automatic two-month extension to file, however, you will have to pay interest on any taxes not paid on the regular due date.