How to File an Extension

by Stephanie
(HFS)

There seem to be many more people in need of filing an extension this year. If you do not think that you will be able to gather all of your tax information in time to have your taxes filed by April 15, 2009, you may choose to file an Application for Automatic Extension of Time, (Form 4868). This will automatically extend the time you have to file your return until October 15, 2009.

When you file an extension, you will eliminate the late filing penalty. But keep in mind, an extension is not an extension of time to pay your tax liability. Therefore, you should send in the money along with your extension if you think you are going to owe taxes. This way you can avoid or reduce any underpayment penalties.

TIP: If your return is completed, you are better off filing it even if you are unable to pay the tax due. The IRS will bill you, or you can set up your own payment plan by filing Form 9465.

You can learn more about Forms 4868 and 9465 at www.irs.gov