When it comes to income tax extensions you would be surprised at the number of myths there are, some of which are widely assumed to be true–but are not. If you think you knew everything regarding IRS tax extensions you may feel differently after reading this blog.
Here are 7 income tax extension myths that you need to erase from your psyche this tax season:
1) My Income Tax Extension Will Not Be Rejected:
Just because you file an automatic extension form that does not mean you are “in the clear” completely. While most extension forms are accepted if filed by the required due date, there is still a possibility that it can be rejected by the IRS due to incorrect information being provided or not fully completing the form.
2) IRS Extension Form 4868 Takes Hours To Complete:
Filing an IRS Extension Form 4868 doesn’t take hours to complete, especially when you e-file with TaxBandits! Filing extension Form 4868 with TaxBandits literally takes just a few minutes. IRS Form 4868 is one of the shortest forms that you can file. If you need extra time to file, head on over to the TaxBandits website and file before the April 17th deadline.
3) IRS Penalties Go Away When You File An Extension:
The reality is that if you currently owe taxes to the IRS, you must make a tax payment by the April 17th, 2018 deadline. If not, penalties and interest charges are applied. The easiest way to avoid this is by making a payment along with filing your extension [if you owe taxes].
4) Only Lazy People File Extensions:
Umm…no! Tax extensions are usually filed by business owners, entrepreneurs, company executives, and those that have a very busy schedule or want to make sure they are filing accurately and correctly. Besides, if you rush and file carelessly, your federal income tax return will most likely be rejected. Take advantage of the option to file a tax extension if you need to.
5) Filing An Income Extension Prompts an Audit by the IRS:
In all honesty, taking extra time to file your taxes does not cause the IRS to put you towards the front of the line for an audit. Plus, if they did not want you to utilize tax extensions, they would not offer them. It is highly unlikely to increase your chances of being audited.
6) Students Are Unable to File A Tax Extension:
Educational status of citizens is not a concern of the IRS when it comes to filing an income tax extension, especially if a student has earnings that are less than $10,400 or $400 in self-employment income. File for an income extension if you need one.
7) If you file an income extension you can’t file until October:
Wrong! Once your extension application has been accepted, you can file your return at any time before the extended due date [October 15th].
Now that you have the real scoop on these tax extension myths, head on over to TaxBandits and file your personal or business tax extension by the April 17th, 2018 deadline.
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