This post continues Tax Extension Center’s daily series of The Top 100 Reasons to File a Tax Extension. In this series of posts, we’re doing our part to educate taxpayers how filing a tax extension can be a valuable tax season option for you or your business because it saves time, stress, and even money.

Here’s reason #91: you file an extension online every year. Why change now?

We all have our habits. And a lot of us handle our taxes the same way every tax season. Some of us file early, some of us procrastinate and file at the deadline, and 15 million of us file a tax extension.

Yep, you read that right. One-five million extension are filed each year.

So if you are one of the people that chooses to extend every year…why change? Chances are you won’t. People that file a tax extension like having the option of an extra 6 months to file their taxes. They also like the fact that an extension is easy. And automatic.

All of those reasons add up to lots of folks who fall into the same habit and their tax deadline every year is October 15 instead of April 15.

Whether you are new to filing a tax extension or you are one of the 15 million invidious and businesses that file one every year, there’s one very important thing to remember: income tax extensions do not give you more time to pay what you owe the IRS for income taxes. You are still responsible for paying what you owe by midnight on April 15 (or March 15 for the corporate taxes). An extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make your payment on time could make you subject to tax extension penalties and interest.

If you have any thoughts, comments, or questions about tax extensions let me know in the comment section below.

The IRS posted some interesting numbers via a press release that came out earlier today.

According to the IRS’ release, electronically filed tax returns are on track with last year and overall refunds are running nearly 10 percent higher so far in 2010.

The stats issued today cover the period through March 12. They show that while the overall number of tax returns filed this year is down slightly, the percentage of returns using e-file remains strong.

Check out these stats from the ‘Service:

• More than 82 percent of the 69 million returns received this year have come in via e-file.
• Home usage of e-file is up almost 7 percent compared to this time last year.
• The average federal refund totaled $3,036, an increase of $266 compared with the same period a year ago.

The refund increase follows a number of federal tax incentives enacted last year as part of the American Recovery and Reinvestment Act, such as the homebuyer credit and the American Opportunity Credit.

“There are several new credits and deductions this year, so we encourage taxpayers to see if they qualify when they fill out their tax return,” said IRS Commissioner Doug Shulman. “To get their refunds quicker, the IRS reminds taxpayers that the fastest, easiest way is to e-file and use direct deposit.”

Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. This series is intended to show taxpayers that a tax extension is valuable because it saves individuals and/or their businesses time, stress, and even money.

Here’s reason #26: it’s good for the environment – when you e-File a tax extension, no paper or envelope are needed.

Green is the new black, right? Or is it pink? I forget.

Either way, recycling is here to stay. And if saving paper is important to you then filing a tax extension through e-file should be on your list of things to do this tax season.

The alternative is to print out the tax extension form (Form 4868 for individuals and Form 7004 for businesses) and then mail it to the IRS.

E-file means no paper. Traditional way means paper. If reducing the amount of paper is important to you, then there seems to be only one choice.

Whether you are new to tax extensions or file one every year, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15. An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make a payment could make you subject to penalties and interest.

Have you ever filed an IRS extension to file taxes for yourself or your business? Thinking about filing one this year? Drop me a note in the comment section below.

In a recent press release the IRS stressed a couple of points they want taxpayers to heed:

“The IRS encourages taxpayers to choose direct deposit when they file their returns because it puts an end to lost, stolen or undeliverable checks. Taxpayers can receive refunds directly into personal checking or savings accounts. Direct deposit is available for filers of both paper and electronic returns.

The IRS also encourages taxpayers to file their tax returns electronically because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds.”

In the same statement, the IRS went on to add, “E-file coupled with direct deposit is your best option; it’s easy, fast and safe.”

I’m in complete agreement. e-Filing is a no-brainer for so many reasons. And as I mentioned in my last post, more and more people are e-Filing these days.

Remember, e-Filing isn’t just for your 1040. You can e-File a tax extension as well.

The IRS reported come interested numbers today about the recently completed 2008 tax season:

A record 95 million individuals e-filed their federal income tax returns during 2009, up almost 6 percent from last year’s total of nearly 90 million. About two out of three taxpayers e-filed this year; out of the 141 million returns filed so far this year, over 67 percent were e-filed, compared to 59 percent last year.

The IRS added that more taxpayers choose to e-file their tax returns each year. While the total number of tax returns has increased 10 percent during the past decade, the number filed electronically has increased by 168 percent. Taxpayers who e-file from a home computer continue to be an increasingly significant segment of those who e-file.