Here at FileLater, we get a lot of questions about taxes and tax extensions. If you're feeling a little confused, don't worry--you're in good company! Here are a few of the most common questions about tax extensions we get every year, and our answers.
What is tax liability?
This is a fancy word for your tax bill. It's whatever you owe when you file your tax returns in March or April (or, if you file a tax extension, in October). It doesn't refer to anything that's been taken out of your paycheck throughout the year--just what you owe, if anything at the end. For example, let's say you made $50,000 this year and you owe $10,000 to the IRS. And let's say you've paid about $8,000 in taxes so far via paycheck withholding. That means your tax liability is $2,000.
Do I have to file a state tax extension, too?
It depends on the state. Each one has its own laws. Some will automatically grant you a six-month extension no matter what; others will do it automatically when you file for a federal tax extension. Still others have their own paperwork that you'll need to fill out. You can get all the info you need on state income tax extensions right here at FileLater!
Do I need to give the IRS a good reason to grant me a tax extension?
Absolutely NOT! The IRS automatically grants six-month income tax extensions to anyone who fills out the form correctly. You can do this for both personal tax extensions and business tax extensions.
What's the process of filing a tax extension, and how long does it take?
With FileLater.com, it's incredibly easy. All you have to do is fill in some personal information (which we keep secure and share with no one except the IRS). We'll electronically submit via IRS e-file your IRS Form 4868 (personal taxes) and/or 7004 (business taxes). Within a few days, we'll let you know that you've been approved, and that means you have until October 15 to file your tax return. If for any reason you've been rejected, we'll tell you why and let you re-submit for free.
What does it mean that you're an "Authorized e-file provider?"
This means that the IRS has approved us to electronically submit tax forms, like
extensions, on your behalf. The authorization process is strict and rigorous, so it means that you can trust us with your information.
What happens if my tax extension gets rejected?
Not to worry! We'll email you to let you know what happened and why, and how to fix it. Then you can re-submit through us at no additional charge. There is no IRS penalty for re-submitting a tax extension.
FileLater provides a secure online solution for individuals and businesses seeking to e-file an IRS income tax extension. FileLater is an authorized IRS e-file