You can electronically file a tax extension on PriorTax starting April 1st
If you know that you won’t be able to file your return by the April 15th deadline, you can buy yourself some extra time by filing an extension online. It’s easy and it’s free. All you have to do is create an account on PriorTax sometime after April 10st and then select that you’d like to file an extension. The whole thing only takes a few minutes. Then you can come back anytime you want to over the next six months to complete your return at your own pace.
An extension gives you an extra six months, until October 15th, to file your return. But you have to make sure to file your extension by the April 15th deadline, otherwise the IRS will consider your return late.
An extension allows you to avoid the failure-to-file penalty for six months. But it does not exempt you from the failure-to-pay penalty. That’s right an extension only gives you an extra six months to file, it does not give you an extra six months to pay.
When you file your extension, you will have to estimate your tax liability. If you estimate that you will actually end up owing money to the IRS, you have to pay that amount when you file your extension. Then after you file your return, you will either get the difference between your estimated and actual liabilities back in the form of a refund, or you will have to pay an extra amount to the IRS.
Officially getting a tax extension involves filing Form 4868 [Application for Automatic Extension of Time to File U.S. Individual Income Tax Return]. If you wanted to file an extension manually, this is the form you would need to fill out. When you file your extension through PriorTax we will automatically fill in the form and electronically transmit it to the IRS.
Remember, you can file your extension right here on PriorTax starting April 1st.
Photo via JD Hancock on Flickr.
