• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Can’t file by April 15? Maybe Oct. 15 will suit you better

by on
in Small Business Tax

With just a few short weeks before the due date for filing personal returns, you may be starting to panic.

Strategy: Buy extra time by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, by April 15. This automatically entitles you to file your federal tax return as late as Oct. 15, 2010—no questions asked!

Applying for this six-month extension enables you to methodically pull together all the records you need instead of scrambling furiously to complete your return.

You may obtain an extension whether you file electronically or by paper. A paper mail request must be postmarked by April 15.

However, be aware that an extension to file is not an extension to pay tax. You still must provide an estimate of your personal income tax liability based on the information you have when you file for the extension.

Furthermore, you must pay at least 90% of the tax liability by the original tax return due date. Otherwise, you will be assessed a late payment penalty for each month dating from the original due date to the date of payment, plus interest figured on the regular interest rate for underpayments (currently 4%).

Note that a filing extension may provide additional tax benefits. For instance, if you’re self-employed, you can still make tax-deductible contributions for the 2009 tax year as late as Oct. 15, 2010, if you obtain the automatic filing extension.

Caveat: The filing extension doesn’t extend the normal April 15 deadline for contributions to a traditional IRA.

Similarly, if you apply for a filing extension, you might be able to take more time to complete a like-kind exchange of real estate properties. The deadline is the earlier of 180 days or your tax filing due date, including any extension.

Tip:
Find Form 4868 at www.irs.gov/pub/irs-pdf/f4868.pdf.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/27696/cant-file-by-april-15-maybe-oct-15-will-suit-you-better "

Related Articles...

    No matches

Leave a Comment