Your Guide to IRS Tax Extensions
The IRS grants tax extensions every year to individuals who need more to get their affairs in order, whether they are filing taxes for a business or individual. It is best to take advantage of this extra time so that your tax return can be accurate. One example of filing a tax extension is if you misplaced your W2 that you received from your employer. You would have to request a duplicate and wait for it to arrive. It is no good to file your taxes without the W2 or you would have to guess the income and this would only force you to make the necessary corrections later on, which is an added step and not necessary. Filing an extension solves this dilemma and this is where Atlanta tax attorneys come in.
Unexpected Situations
Life is uncertain as it is and sometimes, you may have to file a tax extension in lieu of an unexpected situation in your life. This could be a period of illness or even the death of a family member. You could have fallen victim to some kind of natural disaster and not able to file your taxes on time. When you file the extension, the IRS does not ask for a specific explanation. They just want you to follow the deadline and adhere to it. Therefore, it is best to take your time to plan and file your return when you are ready, but before the deadline. This is where you need an Atlanta GA tax lawyer to help you.
Conversion of IRA
When you take that additional time to handle your tax return for filing, you could be converting your IRA for extra savings. Many people do this because it helps to convert to a ROTH IRA from the traditional IRA, providing you with a way out of paying any tax on that balance. The conversion process might take time and so when you file the extension, it buys you more time to do the conversion, and it removes the obligation of paying that tax.
If you were to ask any Tax Lawyer Georgia located, you would be told that it may take longer to pay your taxes, but make no mistake – even with an extension; it probably will not protect you from paying more. If Tax Day is approaching, and you have not finished your paperwork yet, it is time to consider filing for an extension. You may not have any idea whether you owe money or not, and you may not be sure if you will be able to pay if you have to. Fortunately, there seems to be an easy way out to buy more time and that is filing a tax extension. You need to speak to a Georgia tax attorney for guidance.
Pop Quiz
What are the benefits of a Form 4868 tax extension?
- a) More time to pay without penalties
- b) More time to file without penalties
- c) More time to pay and file without penalties
- d) Reduction of penalties for filing late
The answer is “B” since in most cases; a tax extension refers only to more time to file. You do not actually avoid penalties for paying late; usually half a percent for every month you do not pay. The smartest thing to do is file even if you cannot pay right now, and pay as fast as you can afterward.
More time to file without penalties
Any tax attorney Georgia will let you know that there aren’t many situations where the Internal Revenue Service (IRS) can give you a break, but it does happen. For example, if you pay at least 90 percent of your tax bill before Tax Day and request a tax extension, you will not have to pay late payment penalties, as long as you pay the rest of the bill by your due date. The extension for 2021 is May 17, which would normally have been April 15, but the changes have a lot to do with the pandemic and its consequences of unemployment and COVID deaths and illnesses. If you were affected by the winter storm in February, the deadline for filing is June 15. If you are unsure of what your situation is, speak to a tax attorney Atlanta GA.
How to get a tax extension?
A tax extension may not be the break you have been hoping for, but if you still need one, file Form 4868 online or on paper. You will also automatically receive an extension if you make a tax payment. It is not necessary to present an extension if you are out of the country, when you return you will have to do it. You will automatically get an additional two months, but you can get an additional four months by filing. In addition, if you are in the military and on duty outside the US, you are considered “out of the country,” even if you are within the borders of the United States on Tax Day. Get help from a Georgia Atlanta tax attorney.
Consult an Attorney
A tax attorney can help you figure out your options. A tax attorney can help you answer questions such as the date of the extended deadline for filing your taxes. The attorney will also be able to tell you if there is added extension for those hit by the severe winter storm in Texas and other states, whether it is to your advantage to switch up your IRA, how to request a tax extension from the IRS, and the forms to use in filing an extension. It is time to contact a tax attorney Atlanta located; one such being the Law Office of Max Benkel. Pick up the phone and make an appointment.
