Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.

Here’s a very timely question:
It’s literally the last minute and I need to e-file my tax extension. What time does the IRS consider to be midnight?

Answer:
I know what you’re thinking. Midnight is midnight. Stop wasting my time, I need to file my tax extension!

The truth is that this is an extremely popular, and legitimate question – especially on deadline days like today (the April 15 tax deadline).

Here’s the deal: when you e-file a tax extension through an authorized e-file provider, that provider will time stamp your request when they send it to the IRS. So, the location of your provider is what determines midnight.

Example: let’s say you live in Seattle and at 9:30 PM  local time on April 15 you choose to use a provider located on the eastern time zone. Your extension request will be filed at 12:30 AM on April 16 – after the deadline.

Another example: lets’ say you live in Boston. It’s 2:30 AM on April 16 and you are finally sitting down to file an extension. If you file with a provider in the Pacific Time Zone, it will be stamped 11:30 PM April 15. Your extension will be filed before the deadline!

This is one of the main reasons I always recommend FileLater. They are located in San Diego – that’s in the Pacific Time Zone.  So all of you procrastinators on the East Coast can use FileLater for 3 extra hours!

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.

Here’s a very timely question:
It’s literally the last minute and I need to e-file my tax extension. What time does the IRS consider to be midnight?

Answer:
I know what you’re thinking. Mignight is midnight. Stop wasting my time, I need to file my tax extension!

The truth is that this is an extremely popular, and legitimate question – especially on deadline days like today (the corporate tax deadline).

Here’s the deal: when you e-file a tax extension through an authorized e-file provider, that provider will time stamp your request when they send it to the IRS. So, the location of your provider is what determines midnight.

Example: let’s say you live in Seattle and at 9:30 PM  local time on April 15 you choose to use a provider located on the eastern time zone. Your extension request will be filed at 12:30 AM on April 16 – after the deadline.

Another example: lets’ say you live in Boston. It’s 2:30 AM on April 16 and you are finally sitting down to file an extension. If you file with a provider in the Pacific Time Zone, it will be stamped 11:30 PM April 15. Your extension will be filed before the deadline!

This is one of the main reasons I always recommend FileLater. They are located in San Diego – that’s in the Pacific Time Zone.  So all of you procrastinators on the East Coast can use FileLater for 3 extra hours!

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.

Here’s the latest question:
If I e-file a corporate tax extension today, will it be filed in time for the deadline?

Answer:
YES. As long as the request for a corporate tax extension is e-filed prior to midnight, you’re all set.

This question is really common, especially today (the corporate tax deadline). I hear from a lot of companies who have procrastinated and want to get their extension filed today before it’s too late ( a very good idea!). The good news is that e-File is very fast. So once you fill out the form online, it’s submitted. And as long as that happens before midnight, you’re all set.

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.

Question for today’s post:
I Work Outside the US. Can I Get a Tax Extension?

Answer:
This question has some depth to it. Here we go:

The IRS will automatically grant you a 2-month tax extension (meaning you don’t have to file your tax paperwork until June 15) if you qualify for “Out of Country Status” which means you fall into one of the following two categories:

1. You live outside the USA and Puerto Rico and your main place of work is outside the USA and Puerto Rico, or

2. Y ou are in military or naval service outside the United States and Puerto Rico.

If you qualify, you are still eligible for the extra 2 months even if you are in the states on April 15.

What do you do to get that 2-month extension? Attach a statement to your return explaining which of the two categories I listed above qualified you for the extension.

With me so far? Ok, good. Here’s a little more…

If you want a full 6-month tax extension (or 4 more months in addition to the automatic 2-month extension) then you need to file a tax extension with the IRS (Form 4868). This will move your deadline to October 15.

Remember this very important point: a tax extension does not extend your obligation to pay what you owe to the IRS. That money is still due on April 15. The extension give you more time to file your paperwork (like a 1040, for example).

But wait, there’s more:

In addition to a 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers).

To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA

You will not receive any notification from the Internal Revenue Service unless your request is denied for being untimely.

The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U.S. citizens and resident aliens abroad who expect to qualify for special tax treatment).

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax and tax extension-related questions and their answers.

Question for today’s post:
Do I have to file a tax return?

Answer:
Here’s exactly what the IRS says, “You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. Check the Individuals section of IRS.gov or consult the instructions for Form 1040, 1040A, or 1040EZ for specific details that may affect your need to file a tax return with the IRS this year.”

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers the most common tax extension-related questions and their answers.

Question for today’s post:
I am self-employed. What kind of tax extension should I file?

Answer:
Great question. This one seems to come up more and more every year, especially nowadays when more people are taking the leap to start their own businesses.

If you are self-employed as a sole proprietor (filing a Schedule C), a contractor (1099), or a single member LLC, you only need file a personal extension (Form 4868) to extend both your personal and business income tax deadline.

If you have another business type, such as an S-Corporation, you will need to extend your business deadline by filing a corporate tax extension (Form 7004).

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question is one of the more common questions I get asked:
If I am a partner in an LLC or partnership, do I have to file both a personal and a business tax extension?

Answer:
Yes you do. Because a multi-member LLC or a partnership has to file a separate tax return for the business, you will need to file both a business tax extension (Form 7004) and well as a personal tax extension (Form 4868).

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question has to do with business tax extensions, also know as Form 7004:
Do I have to use my Social Security Number when I e-file my business tax extension, or will I use my Tax-ID (EIN) number?

Answer:
For most business types, you will simply need your Tax-ID (EIN) to file your business tax extension. If you are filing for a single member LLC business, you will file for a personal tax extension (Form 4868) and will use your social security number rather than a Tax-ID (EIN).

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Question of the day:
How long does it take to hear back from the IRS on approval for a personal tax extension?

Answer:
Before I answer, I have to ask this follow-up question: did you efile your tax extension or did you use the mail?

If you mailed in your extension request, you will never hear back from the IRS. Never. Therefore, you won’t ever know if they received it or if it has been accepted.

If, however, you submitted your tax extension through an official efile provider like FileLater, you will generally hear back in about a day on the status of your tax extension request.

If you filed a corporate tax extension, you will probably hear back within hours because the technology for efile providers to submit the business tax extension form is more modern than the personal extension technology.

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Question:
What could cause a tax extension to get rejected by the IRS?

Answer:
Filing for a federal tax extension is “automatic” which means that as long as your information is submitted accurately and on time, you will be approved by the IRS. Most rejections occur when personal information does not match IRS records. If you had a recent name change or moved and the IRS records are different than what you submit, for example, you may be rejected and have to resubmit your information before your IRS extension is approved.

If you have any questions about tax extensions, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question:
Can I e-file a tax extension for free?

Answer:
Yes, you sure can. But you shouldn’t wait until April 15. FileLater, the best e-file service for filing tax extension is offering FREE tax extensions for both individuals (Form 4868) and businesses (Form 7004) for a limited time. So don’t wait!

Here are the all-important links to take advantage of this offer:

• File a tax extension for you
• File a corporate tax extension

Remember, you don’t need an excuse to file a tax extension. It’s automatic.

If you have any questions about filing a tax extension, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question:
I can’t pay my taxes on time, so I am filing a tax extension. Does the IRS offer payment plans for unpaid taxes due?

Answer:
Yes, the IRS will generally work with individuals and businesses who cannot afford to pay their tax liability by using payment plans, or installment agreements. To discuss payment plans, you should contact the IRS directly by submitting IRS Form 9465 or calling 1-800-829-1040.

If you have any questions about tax extensions, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question:
I filed for a federal tax extension but cannot pay any of my tax liability – what happens now?

Answer:
The good news is that as long as your federal extension is approved, you will avoid the costly late filing penalty. However, since you are unable to pay your liability, you may charged interest on what you owe, which is generally at an interest rate of 5-8% per year. You will be able to calculate any interest owed when you file your final tax return.

Bottom line? If you can’t pay, you can’t pay. But you should try to pay as much as you can as soon as you can. Otherwise Uncle Sam may start accumulating interest on your balance.

If you have any questions about tax extensions, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. This post continues a Tax Extension FAQ series that covers some of the more common tax extension-related questions and their answers.

Today’s question:
I had to make a payment for federal taxes with my tax extension. What do I need to do for my state?

Great question. There’s no one simple answer, but here’s my response:
It depends. Federal and state requirements are different, and state income tax extensions and payment requirements vary by state. FileLater has done a great job of compiling all state tax extension info and putting it in one place. I encourage you to check it out and see the rules in your state.

If you have any questions about tax extensions, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.

Even though the actual tax extension form for individuals or businesses are a lot simpler than your average tax form,  taxpayers still have valid questions about how to complete it. Today I’m starting a Tax Extension FAQ series to go over some of the more common questions and their answers.

Today’s question: Do I have to file a separate tax extension for business and personal needs?

The answer is Yes. The IRS generally requires different tax extension applications for both personal extensions (Form 4868) and business extensions (Form 7004).

There is an exception. Single member LLC businesses – if you own a single member LLC you can file a personal income tax extension  which will extend both your personal and business tax deadline.

If you have any questions about tax extensions, please let me know in the comment section below. I’ll do my best to cover it in a future blog post.