So, if you owe $1,000 and pay a year after the deadline, you'll owe $30 in interest. The IRS's interest rate can vary, and is 3% for underpayments as of the first quarter of 2016. ![]() You will owe interest on any tax not paid by the normal due date, even if you have a legitimate reason for not paying on time - such as being out of the country or some other hardship. You don't need to justify the extension - all you need to do is to provide an estimate of your 2015 tax liability using the information you have and file the form by the regular tax deadline, which is April 18, 2016. While this is technically an application process, the extension is granted automatically in most cases. ![]() Here's what you need to know about applying for a tax extension, as well as a big warning about what a tax extension doesn't do.Īn IRS tax extension is automatic By filling out IRS Form 4868, you can apply for an additional six months to file your income tax return. Fortunately, the IRS has made the process of requesting an extension pretty easy. Follow him on Twitter to keep up with his latest work!įollow year, many Americans need some extra time to finish their tax returns, for one reason or another. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. ![]() ![]() Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012.
0 Comments
Leave a Reply. |