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Tax days arrived Tuesday, and Americans faced a midnight deadline to file their tax returns. However, if you need more time, you can submit an extension until later this year to get a grace period.
Taxpayers will submit returns for the 2024 tax year until midnight on Tuesday in their respective time zones. Still, if taxpayers need more time to file, they can request an extension from the Internal Revenue Service (IRS) to October 15th using Form 4868. People can file electronically.
And it is important to note that people are still on the hook for taxes that were unpaid as of April 15th, and should prepare to pay now to avoid penalties and interest. Experts said not paying on time is not so bad that you can’t submit it on time.
“If you need more time after April 15th, it’s important to request an extension. If you don’t file on time, a penalty of up to 10 times if you don’t pay on time,” Andy Phillips, vice president of the H&R Block’s Tax Institute, told Fox Business.
“If you request an extension and expect to borrow it, it’s important to remember that it’s an extension of time to submit and not an extension of time to pay,” Phillips said. “When submitting that extension, make sure you also pay what you expect to pay to avoid penalties and benefits.”
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Taxpayers must submit returns or request an extension until late at night on April 15th. (Michael Bocchieri/Getty Images)
“Taxpayers who need more time to complete their taxes can apply for an extension electronically or by mail by filing Form 4868 with the IRS. Tax professionals can also help submit extensions,” Phillips said. “The cost of an extension depends on the method and software you are using.”
“People who are receiving refunds, they don’t get those penalties,” Lisa Greene-Lewis, editor at the Turbotax blog’s CPA, told Fox Business. “Even if the IRS is trying to get a refund because you don’t know your deduction or credit, you still want to submit an extension.”
“They will receive reports of your income in forms like W-2 or 1099. If you don’t know what your deduction and credits are, they may send you a notification saying, ‘Hey, you see that you know this amount’. Now it doesn’t mean you don’t necessarily have to pay the amount they show. You just need to file your tax return and prove that you are not borrowing that amount,” she explained.
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Taxpayers can effectively submit an extension request to the IRS or mail it, and accounting firm tax professionals can assist with the process. (Angus Medanto/Bloomberg via Getty Images)
Greene-Lewis said taxpayers who are hoping to borrow IRS money should make payments at the time they file the extension, but can work with the agent through a payment plan if necessary.
“IRS, they work with you, they will have you make an installment agreement.
Greene-Lewis and Phillips agreed that taxpayers with the required documents should submit returns prior to the midnight deadline, rather than requesting an extension and withdrawing the process.
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Turbotax says experts can help taxpayers up to the tax date before the local time deadline. (Kimberly White/Getty Images from Turbotax)
“If you’re ready to go and have all the documents, there’s no reason to wait anymore. Check out today’s files,” Phillips said.
“The average refund is above $3,000, so why wait to get a refund? If you have all the documents, you’ll have to go ahead and submit it. It’s still until midnight due to the tax deadline,” she added that Turbotax experts can process filing taxes in as little as a day and can be used until late at night local time on tax day.
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