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What Are Tax Extensions?

What Are Tax Extensions?

As we near the filing due date for individual tax returns, we may find that we are still missing key information that is necessary to claim a credit or a deduction. Working with your tax professional or accountant, such as Larry Gurewitz in LOS ANGELES, CA, you may find that it is better to file for an extension versus filing your return and then having to amend it. So what is an extension and how can it help you when it comes to filing your taxes?


Understanding Extensions


The IRS gives individuals, businesses and estates the ability to file a tax return after the deadline. This means that they will not have a late filing penalty fee as a result of filing their return after the deadline. One key point is that this is just an extension to allow you to file your return later. It does not extend the due date for your tax bill. As a result, if you do not pay your tax bill, then you may be subject to penalties and interest for the amount of tax you owe the IRS.


Therefore, it is important to determine if you will owe any tax as part of filing your return. If your tax professional can determine that you will not owe any taxes, but be eligible for a refund then you will not have to worry about writing a check to the IRS prior to filing your return. However, if you will in fact end up owing the IRS, it is better to make a payment for the expected amount of tax owed. If upon filing your tax return, you find that the amount of tax owed was less than your payment, you may be eligible for a refund.


How to File an Extension


In order to receive an extension from the IRS, you need to file a form 4868, which requests an additional six months to file your tax return. This basic form will allow you to make an estimated tax payment, if necessary, and make a tax payment.

Keep in mind, you can recover any interest on the amount that you might have overpaid in terms of taxes. However, you may also end up owing interest if you do not end up making a large enough tax payment, but you should not owe a late filing payment to the IRS.

In order to get the extension, you must file the Form 4868 by the normal tax return deadline of April 15th, although depending on the tax year, that may be extended as well. Most tax professionals can assist you in getting this extension filed promptly and they will also be able to help you estimate how much tax you may owe.


If you have an estate, then the tax return is typically due within nine months of the death of decedent. As the executor of the estate, you will need to make sure that you have filed the return in a timely fashion. However, if you need an extension, you can file a Form 4768 to receive an automatic six-month extension to file the return on the estate. Working with your tax professional, you can determine if this extension will be necessary. Additionally, if you are out of the country, you can apply for a second extension six-month extension. However, this second extension is not automatic and will result in a review by the IRS before it is approved. If you believe that you will need to have the second extension, the request must be filed before the first extension expires. This means giving the IRS enough time to review your application and give their approval or denial before your first extension ends.


Working with a tax professional, you will be able to create your extension request, listing the reasons why you need the second extension. Keep in mind, the IRS is under no obligation to approve the extension. As a result, you will need to make sure that you are working to complete that estate return as promptly as possible.


As you can see, the IRS recognizes that we all may need an extension for filing our tax return from time to time. Therefore, if you work with your tax professional, you can take advantage of this option from the IRS.

Click on the link below to contact a tax professional or accountant in the office of Larry Gurewitz in LOS ANGELES, CA, who can assist you in determining if you need to file an extension on your tax return.

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