Monday, April 15, 2013

Not Ready To File Your Taxes? Extension Form, Details Available


If you're like me, you're not ready to pop your return in the post just yet. That’s right: like more than 10 million other taxpayers, I'm filing for an automatic extension this year.
Don't get all judge-y. There’s no need. There are lots of legitimate reasons why taxpayers need more time to file. One of the most common reasons is a situation like mine where income does not come from a mere W-2. In addition to having self-employment income, my husband and I own a business; it’s a pass through entity so we can’t start our returns until we receive the information from the business. Not to mention that, oh say, I’m a bit busy this time of year.
But there are other reasons: you could be a beneficiary of a trust or estate or a shareholder or partner in a pass through entity and just now getting your Schedule K-1. You might not have received your forms on time. You might still be waiting for a 1099-R. You might be funding an IRA (you have until tomorrow) and need to include that information on your form 1040. There are lots of reasons. You don't need to tell anyone why you're filing for extension – even the IRS. And it doesn't (contrary to popular belief) increase your risk of audit or examination.
Your name (and spouse’s name if you’re filing jointly) – I think you can manage.Here’s what you need, generally, to file an extension:
  • Your address.
  • Your Social Security (and spouse’s Social Security number if you’re filing jointly).
  • Estimate of total tax liability for 2012
  • Total of what you paid in 2012 (including withholding)
  • The amount you’re paying with the extension, if anything.
The last bit is important because an extension is an extension of the time to file and not an extension of time to pay. If you expect to owe at tax time and you’re filing for extension, you should make a payment with your extension request.
To file for an extension, you can:
The regular “timely filing” rules apply – so be sure and get your extension postmarked by the end of the day on April 15.
Filing for extension gives you a six month extension of the original time to file. For 2013, this means that, with an extension, you’ll have until October 15 to file a return. If you timely file for your extension, you will not be subject to the late-filing penalty, which is normally 5% of your unpaid balance per month.
In some circumstances, taxpayers get an extension of time to file without having to ask. For 2013, that includes:
  • If you’re a US citizen or resident and you live outside of the U.S. or Puerto Rico and your main place of business or post of duty is outside of the US or Puerto Rico or if you are active duty military and live outside of the U.S., you qualify for a 2 month extension without having to file form 4868. That moves your due date to June 17 (since June 15 falls on a Saturday) to file and pay. However, interest is still due on any tax payment made after April 15.
  • Members of the military and others serving in Afghanistan or other combat zone localities generally have until at least 180 days after they leave the combat zone to file returns and pay any taxes due.
  • People affected by certain tornadoes, severe storms, floods and other recent natural disasters have extra time. Currently, parts of Mississippi are covered by federal disaster declarations, and affected individuals and businesses in these areas have until April 30 to file and pay.
The whole process should only take you a few minutes and, in most circumstances, won’t cost you anything. So stop worrying, do it now and then breathe. You got this.
Need help getting a extension? We are always here to help. Give us a call today.

North Sound                                       South Sound
2802 Wetmore Ave, Suite 212           33530 1st Way S, Suite 102
Everett, WA 98201                             Federal Way, WA 98003
425.339.2400                                     253.237.0751
fax 425.259.1099                               fax 253.237.0701


No comments:

Post a Comment